Is it better to try to do a short sale or just let my under-water house be foreclosed?
That depends on a few factors. In Arizona, homeowners are protected by two anti-deficiency statutes with respect to their homes, A.R.S. §§ 33-729(A) and 33-814(G). § 33-729(A) applies only to purchase money mortgages. Arizona courts have construed it to apply also to purchase money deeds of trust that are foreclosed judicially. A.R.S. § 33-814(G) applies to deeds of trust foreclosed by trustee’s sale, whether or not they are purchase money deeds of trust.
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