In general, an exculpatory clause is a clause that eliminates a partys liability for damages caused by a breach of contract. A common type of exculpatory clause involves limiting liability on a loan to the collateral. In other words, if there is a default, the contract says that the damages will be limited to execution on the collateral (i.e., foreclosure on the property covered by the mortgage or deed of trust).
Arizona Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgment
State:
Multi-State
Control #:
US-02763BG
Format:
Word;
Rich Text
Instant download
Description
How to fill out Exculpatory Clause Or Nonrecourse Provision In Mortgage Regarding Deficiency Judgment?
If you want to comprehensive, obtain, or printing legal document web templates, use US Legal Forms, the largest selection of legal forms, which can be found on-line. Take advantage of the site`s easy and practical research to find the paperwork you need. Numerous web templates for organization and personal reasons are categorized by categories and claims, or search phrases. Use US Legal Forms to find the Arizona Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgment in a handful of mouse clicks.
In case you are presently a US Legal Forms client, log in to the bank account and then click the Download key to find the Arizona Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgment. You can even gain access to forms you earlier delivered electronically inside the My Forms tab of your respective bank account.
If you are using US Legal Forms the very first time, follow the instructions beneath:
- Step 1. Be sure you have selected the shape for that proper area/country.
- Step 2. Use the Preview option to look through the form`s articles. Never forget about to read through the description.
- Step 3. In case you are unsatisfied using the kind, use the Lookup industry towards the top of the monitor to discover other types of the legal kind format.
- Step 4. After you have located the shape you need, click on the Buy now key. Pick the pricing program you choose and put your accreditations to sign up on an bank account.
- Step 5. Method the financial transaction. You should use your bank card or PayPal bank account to perform the financial transaction.
- Step 6. Pick the structure of the legal kind and obtain it on your own system.
- Step 7. Full, edit and printing or indication the Arizona Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgment.
Every single legal document format you acquire is your own forever. You have acces to each kind you delivered electronically inside your acccount. Select the My Forms section and pick a kind to printing or obtain again.
Remain competitive and obtain, and printing the Arizona Exculpatory Clause or Nonrecourse Provision in Mortgage regarding Deficiency Judgment with US Legal Forms. There are thousands of professional and state-particular forms you may use for the organization or personal requires.
Form popularity
FAQ
If the property does not sell for amount owed, creditor may obtain a deficiency judgment for the amount owed by borrower above proceeds of sheriff's sale. Debtor can bid, but must be 2/3 of appraised value.
In return for the lender having the power to sell the property, the Power of Sale clause protects the borrower by stating that when the lender sells the property, the lender may not hold the borrower liable for any cost not covered by the sale unless the lender is able to obtain a deficiency judgment in their favor, ...
If your lender sells your home for less than what you still owed on your loan, a local court might file a legal action known as a deficiency judgment against you. In many states, lenders must first file a lawsuit to get a deficiency judgment.
A lender may obtain a deficiency judgment if the borrower is personally served or enters an appearance. They may also get a deficiency judgment against the property if the borrower redeems it after the sale. A deficiency judgment is not available when the borrower agrees to a consent foreclosure.
In order for deficiency judgment to be granted, a creditor must be in a state that recognizes deficiency judgments for the type of debt and prove that the asset was sold at a fair price. Deficiency judgment most often arises in mortgage foreclosures where the home does not cover the cost of the mortgage.
The legal principle of a deficiency judgment could apply to any secured loan, such as a car loan, where property seized from a defaulting debtor sells for less than the lender is still owed on it. In most cases, however, the term is associated with mortgage foreclosures.
In Arizona, unless there is some agreement, rule or statute to the contrary, a lender can generally seek a deficiency judgment after foreclosing on a property securing a loan.
The anti-deficiency statutes will protect the borrower from deficiency where the property is 2 ½ acres or less, the home is utilized as a single or two family dwelling, and for the purpose of judicial foreclosures, the loan was secured to pay part or all of the home purchase price (i.e. purchase money).
