Phoenix Short Sale Questions: Will I Be Hit With a Deficiency Judgemet After The Sale?

Do I have to pay back the difference of what the home sells for and what I owe?

This is another very popular question. And I am not the right person to answer it. I am not a lawyer, so any law related questions should be directed towards a Real Estate Attorney. What I can do is point you to some great resources and tell you what I do know. Remember, this is not legal advice.

Arizona is what is known as a “Non-Judgment Deficiency State.” Generally speaking, if the bank forecloses on our home they can not come after you for the difference. Please refer to the Arizona Revised Statues for clarification. Please also read this article from Christopher A. Combs and Adam D. Martinez, two leading real estate attorneys in Arizona.

Last point: A home equity line of credit (HELOC) is NOT the same as a purchase money mortgage, so the rules are different.