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  1. #1
    Join Date
    Nov 2008
    Posts
    7

    Question Is an 80/10/10 All Non-Recourse

    My question involves a foreclosure in the State of: Arizona

    I purchased a modest home in Jan 07 and obviously the value has dropped considerably. I purchased the home with an 80/10/10 mortgage, 10% down with that equity being put into an HELOC that created the rest of the 80/20 to avoid PMI. I have an out of state job offer and am looking at options.

    I understand in AZ 33-729 that "if a mortgage is given to secure the payment of the balance of the purchase price, or to secure a loan to pay all or part of the purchase price, of a parcel of real property of two and one-half acres or less which is limited to and utilized for either a single one-family or single two-family dwelling, the lien of judgment in an action to foreclose such mortgage shall not extend to any other property of the judgment debtor"

    Would this extend to the second mortage since it was used to secure payment of the balance price?

    I am looking for a lawyer locally for advice (not sure how to find one who specializes in real estate law).

    Thanks

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Is an 80/10/10 All Non-Recourse

    A HELOC is not ordinarily considered part of your purchase money mortgage. You should consider consulting a local real estate lawyer to see how the local courts are treating "creative" financing deals under that statute.

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