How does a Short Sale or Foreclosure Impact Your Credit?

As you may know, a short sale or foreclosure can negatively impact your credit score and delay your ability to obtain financing for a new home loan. Arizona is an anti-deficiency state, though, meaning that a lender generally can’t sue you for a deficiency on your loan after a short sale or foreclosure. Furthermore, the Arizona Supreme Court has held that a borrower has no personal liability for a loan if the anti-deficiency law applies. Baker v. Gardner, 160 Ariz. 98, 770 P.2d 766 (1988). This limits the way your lender can report your short sale or foreclosure to the credit reporting agencies. Please call The Carroll Law Firm to discuss how your short sale or foreclosure is listed on your credit report and to explore options for quickly restoring your credit following a short sale or foreclosure.


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