Is Arizona an anti-deficiency state?
What Are Arizona Anti-Deficiency Laws? Arizona Revised Statute §33-729 protects homeowners with a purchase money mortgage from deficiency judgments. To qualify, the property must be less than two and half acres and used as single one-family or single two-family dwelling.
What is an anti-deficiency law?
An “anti-deficiency law” is a state statute (law) that prohibits foreclosing banks from suing borrowers for deficiency judgments.
What type of property is protected from deficiency judgments in Arizona?
Arizona Anti-Deficiency Statute: The Basics A. Section 33 prevents a lender from seeking a deficiency judgment after foreclosure when the mortgage loan was made to help purchase the home, the property is less than 2.5 acres in size and less than two “dwelling units” in size.
What is the deficiency law?
A deficiency judgment is a court ruling against a debtor who is in default on a secured loan, when the sale of the property that secured the loan fails to cover the debt in full. It allows the lender to collect additional money from the debtor to make up the difference.
Is AZ a non recourse state?
There are currently 12 non-recourse states: Alaska, Arizona, California, Connecticut, Hawaii Idaho, Minnesota, North Carolina, North Dakota, Texas, Utah, and Washington.
What is the primary purpose of Arizona’s anti deficiency statute?
In Arizona, certain home owners are free to stop making payments their home and walk away from it with no financial recourse against them. These people are protected by what is commonly known as Arizona’s Anti-Deficiency Statutes. Protection for residential borrowers is set forth primarily in A.R.S.
What states have anti deficiency laws?
The following states have anti-deficiency laws: Alaska, Arizona, California, Connecticut, Hawaii Iowa, Minnesota, Montana, Nevada, New Mexico, North Carolina, North Dakota, Oregon, Washington, and Wisconsin.
What states allow deficiency judgments?
Most states allow deficiency judgments. Only Alaska, California, Minnesota, Montana, Oregon and Washington forbid deficiency judgments in most cases. Other states only allow deficiency judgments in certain instances. In Arizona, lenders can’t purchase deficiencies for one- or two-family homes on 2.5 acres or less.
Is Arizona a recourse state?
A mortgage loan used to purchase a home in Arizona is non-recourse debt. In other words, in Arizona, unlike most states, the homeowner has no personal liability for a mortgage used to purchase a home.
What is the foreclosure process in Arizona?
In Arizona, most foreclosures proceed via a non-judicial process governed by a deed of trust executed and recorded at the time of purchase. By electing this procedure, the lender may proceed with a trustee’s sale without having to file an action in court.
Which states allow deficiency judgments?