Combatting Calif. And Ariz. Antideficiency Legislation
March 2, 2012, 11:07 AM EST
Law360, New York (March 2, 2012, 11:07 AM EST) -- Rising foreclosure rates in the residential real estate market have prompted underwater borrowers to ask about possible foreclosure strategies — most notably, how to avoid deficiency judgments. Often overlooked, however, are the challenges that lenders face, primarily due to borrowers choosing to strategically default on their mortgage when the amount owing on the loan exceeds the value of their home.
These challenges are of particular concern for lenders operating in states like Arizona and California that have enacted strict antideficiency laws to mitigate the effects of...