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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation Posted by Conay on June 11, 2008 at 11:03 AM In Reply to: Re: Arizona - Looking for Advice on Voluntary Foreclosure Situation posted by Kim on May 10, 2008 at 11:35 AM A.R.S. § 33-725 (mortgages) and A.R.S. § 33-814 (deeds of trust). However, in 1971 the Arizona Legislature enacted two anti-deficiency statutes barring the right of certain beneficiaries and certain “purchase money” mortgagees from seeking a deficiency judgment for certain types of residential loans. These anti-deficiencies statutes apply when the security does not exceed 2.5 acres and is utilized as and limited to either a single one-family or single two-family dwelling. The result of the anti-deficien­cy statutes is that a lender who is foreclosing on a single one-family or two-family residence on less than 2.5 acres may receive less than the debt but still not be able to collect the difference, whereas a lender who instead sues on the note could potentially obtain a judgment for the full amount of the debt owed. If the lender is significantly under-secured and believes the debtor has sufficient assets to enable the lender to collect on a judgment, the lender may want to waive the security and sue directly on the note, as long as the law allows such action (as explained below). Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : A.R.S. § 33-725 (mortgages) and A.R.S. § 33-814 (deeds of trust). However, in 1971 the Arizona Legislature enacted two anti-deficiency statutes barring the right of certain beneficiaries and certain “purchase money” mortgagees from seeking a deficiency judgment for certain types of residential loans. These anti-deficiencies statutes apply when the security does not exceed 2.5 acres and is utilized as and limited to either a single one-family or single two-family dwelling. The result of the anti-deficien­cy statutes is that a lender who is foreclosing on a single one-family or two-family residence on less than 2.5 acres may receive less than the debt but still not be able to collect the difference, whereas a lender who instead sues on the note could potentially obtain a judgment for the full amount of the debt owed. If the lender is significantly under-secured and believes the debtor has sufficient assets to enable the lender to collect on a judgment, the lender may want to waive the security and sue directly on the note, as long as the law allows such action (as explained below). [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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