questions & answers

Question: The question concerns anti-deficiency laws in Arizona (non-recourse state) in regards to foreclosure? I am trying to determine if they are different for owner-occupied and non-owner-occupied residences in Az? If there is a deficiency in the foreclosure, can I be sued as a non-occupant owner for a deficiency.

Answer:

Arizona is an anti-deficiency state which prevents lenders from recouping losses they may take when they foreclose on a home that is 2.5 acres or less, a single family dwelling, a single two-family dwelling, or if the deed of trust expressly prohibits recovery of any balance due. (A.R.S. 33-814(G)).

Section H of the same statute however states that for deeds of trust that originated after December 13, 2014  a property that would qualify under section G (above) but was not lived in would not qualify for anti-deficiency protection.