Dealing with Debt

questions & answers

Question: Mt mother is in an assisted living home. Her retirement income and social security combined barely cover those costs. If she defaults on her mortgage can her retirement income be garnished?

Answer:

If the mortgage is a purchase money mortgage (compared to a equity lne of credit), and the property is a single or 2-family residence (it does not matter if it is her primary residence or an investment residential property) on less than 2.5 acres of property in Arizona, she should not be liable/responsible for the deficiency because of Arizona's anti-deficiency statute. If the mortgage is not a purhcase money mortgage, she may be liable for a deficiency. If so, as a general rule, properly qualified retirement plans are not subject to garnishhments from judgment liens.

Because of the complexity of property rights, you may want to contact an attorney. An attorney can review the retirement plan, mortgage and deed of trust. To find an attorney you may want to look at some of the resources available through the organizations list on this website. Additionally, you may want to contact the Maricopa County Lawyer Referral Line, the Pima County Law Referral Line or the State Bar of Arizona Find a Lawyer Website to see if an attorney can help you.

QUESTIONS

  • Mt mother is in an assisted living home. Her retirement income and social security combined barely cover those costs. If she defaults on her mortgage can her retirement income be garnished?

STORIES

  • He told me that I could actually get all the money I needed by using my home as collateral. . .
  • He told me that I could actually get all the money I needed by using my home as collateral. . .
  • I just helped my mother, age 89, deal with her Medicare HMO. . .

LegalLEARN

YOUR FEEDBACK IS NEEDED

  • Welcome to our Newly Redesigned Website! Let us know how we are doing! Please take a couple of minutes to fill out our survey.

FIND LEGAL HELP

  • Please select your county of residence below.

    County:
     

OTHER LEGAL RESOURCES

  • State Bar of Arizona
    www.azbar.org
  • Maricopa County Bar
    www.maricopabar.org
    Referral number 602-257-4434
  • Pima County Bar
    www.pimacountybar.org
    Referral number 520-623-4625
  • National Domestic Violence Hotline
    800-799-7233
  • Bankruptcy Court Self Help Center
    866-553-0893
  • Certified Legal Document Preparer Program
    Link

ORGANIZATIONS