Legal Question in Real Estate Law in Arizona

A year after buying our home we took out a second mortgage to have a pool put in. Our home has since foreclosed and the bank is telling us that the auction amount was not sufficient to cover the cost of the home improvement loan and it is now considered an unsecured debt. Is this information accurate? Are we still responsible for this debt even though we no longer own the home? The loan amount was for $30,000 and was entirely used for the construction of the pool. The loan was made with a different bank than our original mortgage company. Our home was located in Surprise, AZ. Thank you for any information you can provide.

Asked on 8/17/09, 2:53 pm

Joan Bundy Joan Bundy Law

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Yes, you do owe the moneys. It is a separate expense from the mortgage. You will need to pay it.

Answered on 8/23/09, 1:25 pm

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