Disputes/ Lawsuits

You Can Settle Your Deficiency Lawsuit

We have a number of clients who are being hit with demands for payment on loans which are not protected by Arizona’s residential anti-deficiency statutes. (In general these statutes protect borrowers against claims from mortgage lenders who foreclose on residences. No protection is afforded for loans on commercial properties, or for HELOC or other second mortgages obtained after the home was purchased.

We have successfully represented clients who purchased raw land with a loan and clients who opened a new business, but then defaulted on the loans when their business plans did not develop as planned, as well as clients who have obtained Home equity lines of credit. In general, we have been able to favorably resolve these claims with payments of 10 to 20 cents on the dollar paid over time. For example–a claim for approximately $600,000 was settled for $75,000, with no interest, paid at $1,000 per month until paid in full. Our expertise in the bankruptcy arena provides a powerful tool in convincing lenders that settlement is better than forcing our clients into bankruptcy.