
Quoting
lucy25
My question involves a foreclosure in the State of: Arizona
Thanks in advance to all that help. This is a tough time and I appreciate any help/advice.
I have a house in AZ that I purchased as my primary residence a few years ago but I now cannot afford to pay the mortgage on due to job/medical issues. Rather than write a book, I'll break it down in short bullets below followed by a few questions. Hopefully I gave everyone the important info.
-Listed on title as primary residence
-Since moved to CA and purchased another house where I spend most of my time (can afford to make payments on this house but not both)
-Originally purchased house with one loan (C-Wide).
-A year later took out a HEL; 2nd paid Cwide 40K and gave me 50K cash out.
-Currently 1st: 150K; 2nd 80K.
-House worth about 155K now.
-Renting house is not option....still could not afford pmts.
-A family member is currently living there now...and I visit quite often.
-payments are current now on both...but not for long.
-I owe 18K in credit card debt and 11K auto loan to same bank that holds 2nd!!!! All payments current.
Questions:
1. I am thinking about trying to short sell the house. Is this the best option given my circumstances?
2. If it short sells or forcloses, 1st will get most or all of their money....2nd will not get much. Can the 2nd seek a deficiency judgment against me for the remaining amt owed on the 2nd? I know there is that AZ law about if it is a SFR under 2.5 acres and wondered if that would apply to me? Somebody said no because I don't currently live there now...is that true even though I never claimed the house a rental property on taxes and the title shows it as primary residence?
3. If I do get sued, can the 2nd come after my CA house. This house is my actual primary resid. and i used a VA loan to purchase. I have only 16K in equity in that house but cannot refi to pay 2nd because I have not owned it long enough.
4. I know my credit will get hit hard but can they garnish my wages? If so, then I would not be able to pay for my CA house and would have to file Bankruptcy. Or is bankruptcy something I should be looking at now?
I know some people will think that this is just another case of someone who overspent but the real deal is that I have been diagnosed with a disease and cannot work enough to make both house payments....even if I rented it out and had that income.
Thank you,
Lucy