how do you know which states are recourse/nonrecourse

[azenfermera]

I don't unerstand how you know which states are recourse/nonrecourse. If anyone knows and can explain to me in layman terms I would greatly appreciate this.

You need to look at State Law. One thing I've noticed is that there are fewer states that have non-recourse secured debt and those states are located in the Western U. S.

Daniel

[azenfermera]

Arizona's "anti-deficiency" statutes prevent a lender from suing a person for any losses on a home after foreclosure. As outlined in Arizona Revised Statutes, Title 33, Chapter 6.1, a person may not be sued by his or her lender if the property is located on 2.5 acres or less and is a single family residence or duplex. This only applies if the decrease in value is not due to the home owner's neglect.

Does this mean non-recourse?

[dealingwithHomeEq]

Arizona is one of the best states to live in if you're facing walking away from your home. I recently posted an article in another string written by an Arizona lawyer. The article cites Bank One v. Beauvais .

Beauvais seems to be much more liberal than the California cases out there in that the "purchase money" characteristic of a loan is not lost for a refi or a second (even with cash out). See attached.

Every state has its own laws regarding deficiency judgments. There is no federal standard.

[dealingwithHomeEq]

By the way, Ed Beauvais was the founder of America West Airlines. It goes to show that defaults and walk-aways are not just limted to us worker ants.

[azenfermera]

Thank You..dealingwithhomeq
I think I have a clear picture now.

[LivinSD]

Does anyone know if AZ law has any exceptions for non-owner/investment properties? i.e. Is non-recourse still applicable if I have an investment prop?

Thanks in advance for any advice or pointers.