Are purchase money loans non recourse in AZ

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Submitted by seattle-relo on October 1, 2008 - 9:46am

Hey Guys, boy do I have some family drama to tell you about. It looks like my mother's sister "purchased" her house about 18 months ago with my mother's identity - yep identity theft from a family member! I guess my aunt's previous loan was in foreclosure and the friendly loan officer gave her the great idea to use my mom's identity to obtain another loan. Nice! (My aunt is trying to blame the loan officer, not taking any personal responsibility for her actions) Well this new fraudulent loan is now in foreclosure (surprised?) and on my poor mom's credit. She has written the bank a letter claiming that she did not take the loan out, but doesn't really have the money to hire an attorney to fight the bank, so will probably have to face this hit on her credit. Because she owns her modest home, she is concerned that she might lose it. I called the bank and they told me the loan is a purchase money loan. So I am wondering if anyone has information about Arizona real estate laws and possible puchase money protection. I personally think her sister and brother-in-law should rot in jail for this, but right now I am trying to help my mom protect what little she has. I am so disgusted...unbelievable! I knew a lot of mortgage fraud was happening...I just didn't realize how bad things could be.

Thanks.

‹ Susan Davis 53th district voted "Yah" I can see the whites of their eyes ›
I just did a google search of
Submitted by pabloesqobar on October 1, 2008 - 10:05am.

I just did a google search of "non recourse loans arizona" and this was one of the first things to come up:

http://www.loansafe.org/forum/deed-lieu-...

This certainly suggests that in Arizona the loans are "non recourse". I'd do a little more research, tho. Take a look at the actual laws they cite.

Thanks Pablo. I did a web
Submitted by seattle-relo on October 1, 2008 - 11:16am.

Thanks Pablo. I did a web search and it seems that most likely it is a nonrecourse state.

I'd report identity theft
Submitted by pbnative on October 1, 2008 - 1:43pm.

I'd report identity theft (however that works?) to show that someone was falsely using my identity. And get a credit report immediately, to make sure that the mortgage loan was my only problem.

She needs to call the FTC's
Submitted by guitar187 on October 2, 2008 - 10:32am.

She needs to call the FTC's Identity Theft Hotline (877-ID-THEFT) right away and report it properly. They will walk her thru the process. She will also have to file a report with her local police department. They will tell her to call the credit bureaus and the lender as well. But file the reports with the FTC and police first. It will make your life easier with the lender and credit bureaus.

Above all, have her
Submitted by EconProf on October 2, 2008 - 2:42pm.

Above all, have her immediately go to the police and file a report. DO NOT let her sister talk her out of that action. It is the necessary first step on the paper trail that she will have to initiate to clear herself. She can tell her sister that she simply has not choice in the matter--it is now an issue of self-preservation.

Does anyone else think that
Submitted by pbnative on October 2, 2008 - 8:19pm.

Does anyone else think that the loan officer even knew what was going on? Fraud with a buyer is one thing, but it's a really bad idea to involve a third party who has nothing to gain, lots to lose, and is therefore likely to report the fraud. Also, I've always shown my passport to sign loan docs, wonder how this actually went through.

I questioned how they
Submitted by seattle-relo on October 3, 2008 - 6:48am.

I questioned how they actually signed the documents. My aunt won't say what ID she used. Anytime I signed a loan, I had to show an ID which was then notarized. My mom and her sister don't really look alike, so it's kinda confusing. The pollyana in me wants to believe that the loan officer didn't know what's going on, but with all that is coming out about fraud in the system, I guess I wouldn't be surprised.

I am leaving it up to my mom about filing a report. I think she should, but her sister is an excellent manipulator with regard to my mother. My mom has her own financial issues so in her mind she isn't that concerned about the foreclosure. She was laid off work 6 months ago, lost her health benefits and was diagnosed with kidney cancer. She now has over 200K in medical bills and is planning to file for bankruptcy. The idea of bankruptcy makes her sick, but it seems like she has no other choice - her home is worth about 110K and she makes a little over 1,000 per month - there is no way she could ever pay those medical bills.

Thanks for the info - I am still working with her to get the courage to report it to the proper authorities.

Seattle, Wow. Sorry to hear
Submitted by CA renter on October 3, 2008 - 11:34pm.

Seattle,

Wow. Sorry to hear about your mom's situation. I wish you and your family the very, very best possible outcome on all fronts.

Please keep us updated (if you feel like it).

You'll be in our thoughts and prayers!