There are two very important Arizona laws that all homeowners should know for their own protection:
1. The Arizona Homestead Exemption Law. This is designed to protect homeowners from general creditors. It protects the property for up to $150,000 in equity. Let’s say a property is worth $300,000 and you have a mortgage balance of $150,000. This means that you have $150,000 of equity that can’t be seized by creditors. This is great protection if you’re a homeowner.
2. The Anti-deficiency Law. If you have a mortgage on your home and, for some reason, you can’t make your payments, the bank is going to foreclose and take the property back. This law says that the bank shouldn’t have any right to go after you for any losses or seize any of your personal property. That protection applies to residencies of less than 2.5 acres and less than two dwelling units. However, one thing to know is that this law doesn’t protect you in cases where you have already taken out a home equity line of credit (HELOC).
This is pretty basic information about these two laws. If you want some more details about them, reach out to us and we will point you in the right direction. We’re always here to help with any real estate needs as well.