Christopher A. CombsQuestion: My parents only have their monthly Social Security payments for living expenses, and they have fallen behind on their mortgage payments for their condominium. Their mortgage lender has now scheduled a foreclosure sale. My parents’ Realtor says that their condo has equity of at least $500,000, and she is confident that she can sell it before the foreclosure sale. My parents will then live with us in the casita in our backyard. What if their Realtor doesn’t sell the home before the foreclosure sale?Answer: Under the Arizona homestead law, A.R.S. §33-1101, if there is a foreclosure sale of a primary residence resulting in more than $400,000 in sales proceeds, your parents as owners of the home with equity of at least $500,000 should receive at least $400,000. Beginning Jan. 1, 2024, this $400,000 protection was adjusted annually based on the cost of living. Thus, if there is a 2025 foreclosure sale of your parents’ condo, the exact amount of the sale proceeds to your parents can probably not be determined until after the foreclosure sale.Note: If the sales proceeds at the foreclosure sale are less than $400,000, your parents should receive all of the sales proceeds.Contact real estate attorney Christopher A. Combs at chris@combslawgroup.com.Need a break? Play the USA TODAY Daily Crossword Puzzle. …
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