It is true that the grantee of a quit claim deed in Arizona can walk away from the property without any liabilities after one year if the mortgage and taxes are not brought up to date?

Answer 1

This is the story circulating in Arizona: "There are thousands of homeowners facing foreclosure who simply walk away from their properties and their mortgages. The lenders are left to deal with the financial fallout. Many who owe more than their houses are worth abandon their homes and mortgages and are not too concerned about the hit to their credit score. Some homeowners are combining that strategy with a new one. They are buying new homes before their old homes go into foreclosure, and then walking away from the old homes and the old mortgages. What these homeowners hope to achieve is getting out of their current untenable mortgage situations with a new home and a new mortgage. It appears that so long as the homeowners don

Answer 2

This is the story circulating in Arizona: "There are thousands of homeowners facing foreclosure who simply walk away from their properties and their mortgages. The lenders are left to deal with the financial fallout. Many who owe more than their houses are worth abandon their homes and mortgages and are not too concerned about the hit to their credit score. Some homeowners are combining that strategy with a new one. They are buying new homes before their old homes go into foreclosure, and then walking away from the old homes and the old mortgages. What these homeowners hope to achieve is getting out of their current untenable mortgage situations with a new home and a new mortgage. It appears that so long as the homeowners don’t mind seeing their credit scores tumble, this strategy will work." Comment: You cannot just walk away from a mortgage debt and unpaid property taxes. Both the bank and the town can take the property for the unpaid debts and your credit will be ruined. As for the story shared above, in Massachusetts I have seen banks obtain judgments in court outside of the foreclosure process. In that case, an execution could affect other property owned by the debtor and a savvy creditor would attach a newly purchased property and effectively tie up any further financing and sale of that property. The same may be possible in Arizona. You should seek the advice of an attorney if you contemplate walking away from your property debts.