My question involves a foreclosure in the State of: AZ
Ok, so a quick background...I had a dispute with my HOA at my condo going on 4 years now, I had stopped paying the HOA dues and planned to pay off the lien/judgement amount when I sold the condo. I had a tenant in the property for 3 years leading up to 2008. At this point the HOA executed a mortgage on the property for the amount of the judgement against me. They then proceeded to foreclose via sheriffs deed and they purchased the home at "public auction" for the amount owed (under $8k for a property valued over $140k). I still had a 1st mortgage on the property and at this point due to local market conditions the property was worth less than what I owed on the 1st lien. So the HOA now technically owned the property but there was still a 1st lien and no equity. I had stopped making payments on the 1st mortgage as this point because the HOA kicked my tenant out because they were now the "owner". 1st lien forecloses via trustees sale and the property has subsequently been sold on the open market.
So yesterday I get a call from my boss, the HOA is trying to garnish my wages for the amount due on the original judgement + penalties/attorney fees, etc. Question I have is, didn't they remedy their damages via foreclosure? According to A.R.S. 33-722 "If separate actions are brought on the debt and to foreclose the mortgage given to secure it, the plaintiff shall elect which to prosecute and the other shall be dismissed." Does this statute apply in this case??
This particular HOA has been known to be very vindictive against the owners in the community. The head of the HOA board has lived there for 20 years, retired, and she has nothing better to do with her time then harass the owners/tenants. I can't tell you how many complaints other owners have had against her, but nobody every shows up to vote her out. It seems to me like they are upset they didn't get their $ <side rant>
I would love some advice from anyone who may know how I should proceed. I've already requested a hearing regarding the garnishment and have printed out all the associated liens, judgements, sheriffs deeds, etc.
Thanks in advance.