You don’t really think I mean that do you? See link https://www.desertschools.org/templates/product/baseproduct.aspx?id=3804 As many people know, I spend most of my time meeting face to face with homeowners facing challenges with their mortgages. There no greater challenge than when a person gets a knock on their door from someone who intends to put a stack of papers in their hand with the spoken words, “You have been served.” Which brings me to the current client. I of course will not use their name in order to protect the innocent. That leaves Desert Schools Federal Credit Union front and center.
So, I sit down with the client, and they share their story. About 5 years ago they purchased a home with an 80 / 20 1st and 2nd mortgage. Both mortgages funded by DSFCU. Life is good for this young couple. Real Estate Market is doing well and jobs are great. The husband owns another property prior to marriage of which they rent out. Come 2008 the market has collapsed, and one of them loses their job. They can no longer afford their home. They try to work with DSFCU but to no avail and the home goes to foreclosure. Now, here is the deal. DSFCU informs them that they have to pay their second mortgage back. DSFCU threatens them and treats them like scum, especially since they have now moved back into the other spouses rental which has some equity left. Having not spoken to an attorney to understand their legal rights they make a bad decision under great duress. They accept a promissory note for the amount of the second mortgage. Worse yet, DSFCU attaches it by way of Deed of Trust on the rental that they now live in, eating up the remaining equity. You see, according to ARS 33-729(A) their was no deficiency liability for that second mortgage following foreclosure and the foreclosed homeowner could have told DSFCU to “Stick it up their left Nostril!” I don’t word it that way to be nice. It is a much smaller hole (pointing to my nose) and it would be much more painful.
Not only has DSFCU pressured the homeowner into the NOTE where none should have occurred, they caused that Note to be secured to their other home by way of Deed of Trust. But Wait! The market does not improve and worse yet, on the much lower income they had, they fail to be able to keep up with the payments on the rental and it goes to foreclosure as well. Which brings us back to the current situation. DSFCU has filed suit against this client under the argument that, NOW, there is no protection from deficiency as the new 2nd mortgage was not purchase money. Really!?
Well, I predict this is not going to go well for this lender as the client found us. The shame is, the amount of money the client is going to spend to prove they don’t owe the money is money they don’t have. Don’t let this happen to you.
If you are facing a point today or in the near future where you can no longer afford your home or it no longer makes sense to pay AND owe more than your home is worth, Contact Kevin Hardin and the Mortgage Mediation Group at Thomson Law, PLC at 602-774-3757. Let us help you understand your legal rights and obligation before foreclosure, short sale or contemplating walking away.
DSFCU is the worst..they have no soul and they are bullies. I would agree that if you have them as your lien holder you need attorney intervention!