Legal Question in Real Estate Law in Arizona

I am unemployed and going to school full time. I am 51 yrs old and have a daughter who is 23. My questions is I bought a house in AZ in 2006 without a job. The bank aproved me for a morgage of 250,000 dollars. I had just moved here and they assured me that I could find a job easily and they appraised the home I was interested in for $248,000. I bought it with over $95,000 down and closing costs. I got a job and with the help of my daughter working part time and going to school, I was barely making it. I got the opportunity to get into a college for Physical Therapy Assistant. I will be starting in August of 2010. I do have a small retirement plan from my divorce. My question is that with the rates on homes coming down, can I withdraw money from this plan and my daughter and I go in on a home together that only costs $99,900 and is in alot better shape than the home I live in now? I owe more on my home it than it's worth. I still owe $144,700 and my home is now valued at $115,000. The home next to me that I am interested in is the same model as mine and is going for $99,000. To get my home up to any value it will need new windows, doors, floors, landscaping, and roof. So my long question is if we go together to purchase a lower priced home will there be any legal ramifications in the state of AZ by doing this and deed in lieu foreclosure on my current home. I tried when I was working to get my home modified but they told me I wasn't eligible for a modification or refinance. I feel I will wreck my credit but I also feel my bank was negligent on approving and encouraging me to purchasing this home without a job, which I in good faith put all my money into purchasing it and now owe more on it than it's worth. I have put so much money into this home, with such a large down payment. If I was to stay in this home and fix it up, at the end, with my $95,000 down payment and almost $50,000 in renovations, plus the home payments themselves, this house will end up costing me well over $300,000 plus interest and is barely worth $115,000. This to me seems ludicrous to stay and keep throwing money away. Thank you in advance for your help and I apologize for such a long question.

Asked on 6/03/10, 11:37 am

1 Answer from Attorneys

Lance Davidson Lance S. Davidson, P.C.

There are multiple facts and circumstances which could affect your rights and obligations not discussed above. Sorry to hear about your troubles, but you should consult with an attorney to assure your rights are protected and to minimize liability.

Be mindful of the minefield in short sales. I recently won a case where a lender sought a deficiency judgment after a short sale, but many lenders are successful in pursuing deficiencies [the difference between the loan balance and the sales proceeds to pay off the loan].

Disclaimer: This answer does not create an attorney-client relationship and is for informational purposes only. It is not, nor is it intended to be, legal advice and you should not rely upon it as more specificity in a consultation may reveal facts or other information which could change the result. You should consult an attorney for legal advice addressed to your individual situation.; 480-860-9390

Read more
Answered on 6/04/10, 2:25 pm

Related Questions & Answers

More Real Estate and Real Property questions and answers in Arizona