If you’re facing foreclosure in Arizona of your home or rental property, there is some good news. The Arizona anti-deficiency statute, A.R.S. 33-814 provides some relief with its new anti-deficiency statute. When a real estate loan secured by a deed of trust goes into default, the lender can elect to proceed with a trustee’s sale of the property to enforce its lien rights. The trustee’s sale of the property is commonly referred to as the “foreclosure sale”. If the sale price is less than the current loan balance, a deficiency occurs. However, the lender may not pursue the borrower for this deficiency if all the following criteria are met:
- The property is residential property with one or two families able to dwell in the property;
- The property is 2.5 acres or less
- The property was occupied by the owner or a tenant, and
- The loan was used to purchase or improve the property.
Currently, even if the property is a rental and not legally your residence, the anti-deficiency statute will apply if the above criteria are met. This is good news for home owners and property renters in the state of Arizona; however, navigating the complex legal system can be tricky without the help of a professional and experienced real estate attorney.
If you are facing a foreclosure on your mortgaged home or rented property, you may be affected by this Arizona deficiency statute. If you fit the three criteria shown above, you should seek after legal assistance to learn about the next steps you can take. Our team of real estate law and real estate litigation attorneyshave decades of experience working in the Arizona real estate law industry and can provide you with the legal support you need.
Whether you are in need of legal assistance with real estate matters such as signing a lease, purchasing or selling a home or property, HOA legal matters, lien rights, deeds of trust, use restrictions, tax lien foreclosures, boundary & easement disputes, or home foreclosure, our real estate lawyers can help. Contact our main office to learn more about real estate law services we provide.