What are the legal consequences of a foreclosure?

In Arizona, the legal consequences of a foreclosure depend on the type of loan and associated foreclosure laws. When it comes to residential mortgage loans, the most common foreclosure laws in the state of Arizona are nonjudicial and judicial. In a nonjudicial foreclosure, where the foreclosure process is handled outside of court, the lender can take possession of the property and sell it if the borrower misses any of the payments. In this case, the consequence of the foreclosure would be a deficiency judgment, meaning the borrower would be held liable for the remaining amount on the loan, regardless of what the house is sold for. On the other hand, a judicial foreclosure involves court proceedings and requires the lender to file a lawsuit against the borrower to get the foreclosure process started. In this case, the consequence could be a deficiency judgment if the house does not sell for the amount of the loan, as well as legal fees. Additionally, the borrower’s credit score could also be negatively impacted. Overall, the legal consequences of a foreclosure in Arizona vary depending on the type of loan and the associated foreclosure laws. Some common consequences include deficiency judgments, legal fees, and a decreased credit score.

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What are the legal consequences of a foreclosure?

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