What do Arizona anti-deficiency laws cover?

Arizona anti deficiency laws essentially prevents a lender from pursuing a second court judgment against a borrower following foreclosure to recoup any other losses sustained following the foreclosure sale. These protections under Arizona anti-deficiency laws are limited in scope, however, to the following cases:

• Any single or two family dwelling occupying land less than two and a half acres is protected under Arizona anti-deficiency statutes

• The courts, however, have decided in favor of borrowers, in most cases, concerning common foreclosure and deficiency issues such as “occupancy” (Arizona courts have defined occasional occupancy, by any party, as sufficient for protection)

• Furthermore, the courts have returned mixed results concerning second and subsequent mortgages or home loans used not specifically for the purchase of the property. If the second or subsequent home loan is used in the maintenance or development of a property, it may be covered by anti-deficiency laws in Arizona. Other mortgage loans, commonly referred to as money mortgages or home equity loans, are most likely not covered

If you are facing default or foreclosure proceedings in the state of Arizona, consult with a foreclosure lawyer to learn more about your specific legal rights, which can vary greatly from borrower to borrower, often based on the nature of the home loan itself, as well as other case-specific factors.