Arizona is a anti deficiency state so you can not be collected from within the state of Arizona for the balance of your loans!
Because Arizona is a community property state even though you were not on the loan, you were responsible for the loan!
And if this were in a state where the lender could collect the deficiency they could file suit against you and your husband because you are married, and garnish you and your husbands wages!
Now the loan your husband had on the original in default home, were you on title for that property? It sounds like you were not, however there again since Arizona is a community property state and you were responsible by marriage for the first property and it is in foreclosure, or if your lucky will be a short sale, you probable fall under the premise that you should not yet own another home because you were married to your husband and living in the home that is in default!
Now did you have to sign any papers when you bought the original in default property? If so there is a signature of record within the file on that property!
There are guidelines for Federally mandated mortgage lenders who write loans against HUD, FHA, VA, Fannie Mae, Freddie Mac guidelines which prohibit them from writing the loan for x number of years to someone in default who either short sales or has there home foreclosed on!
The problem is not directly seen as it takes some time for your new loan to be sold / transfered to the Federal Government and for someone to review it, now was there anything in writing stuck in your loan file that actually stated your disclosure in writing? (I am married to a husband who has a property in a community property state in default and is facing foreclosure or best case situation a short sale.)
You see the mortgage person at “Very Large Bank & Trust - Member FDIC” is probable paid in all or in part on commission so she / he wrote the loan but if someone comes asking her / him about your loan, it’s “Oh No, they never said anything to me about the situation with another home being in default in Arizona” and if there is nothing in the file there is no proof you said anything!
Now what could they do, well I don’t know if there is specific law, however if the Federal Government catches the fact the loan was written and refuses to except it into the VA, FHA, HUD, Fannie Mae, Freddie Mac system, they will probable contact the FBI and because there is no disclosure record you could be investigated for Federal loan fraud! (Not disclosing your loan in default to the lender.)
The “Very Large Bank & Trust - Member FDIC” is going to say we did nothing wrong because she / they did not disclose it and if they had we would never have made the loan! Now I am sure your thinking, but my husband was sitting right there, well unfortunately your husband is not a compelling witness because your married it has no weight in the courts!
You are the first married person in a community property state that I have ever heard of doing this, so what the real answer is only time will tell!
It’s not that you can’t buy another home, you just can’t have it financed by the Federal Government!