Benjamin Reeves on Anti-Deficiency Provisions

Everyone Wins When a Foreclosure Sale Generates Excess Proceeds

When a foreclosure sale generates more money than needed to pay off the lien, the excess proceeds usually go first to creditors in the order of their priority, and second to the owner after creditors are paid in full. So, in...more

7/16/2018 / Anti-Deficiency Provisions , Appeals , Banking Sector , Borrowers , Creditors , Deed of Trust , Dismissal With Prejudice , Foreclosure , Homeowners , Homeowners Association (HOA) , Mortgage Lenders , Mortgages , Property Liens , Real Estate Transactions , Sheriffs Sale

Guarantors Can Waive Anti-Deficiency Protections

In Arizona, guarantors can now be held liable for deficiencies even where borrowers avoid liability due to Arizona’s anti-deficiency statute. Arizona courts have been active in the last few years in addressing the law...more

6/23/2015 / Anti-Deficiency Provisions , Foreclosure , Guarantors , Trustee Sales

Are Vacant Lots Protected Under Arizona’s Anti-deficiency Statutes?

No, of course not. Arizona’s anti-deficiency statutes only prohibit deficiency judgments after a trustee’s sale of a “dwelling”. Under no definition can a vacant lot constitute a “dwelling”. This was the Arizona Supreme...more

2/12/2015 / Anti-Deficiency Provisions , Vacant Properties

Amendments to Arizona’s Anti-deficiency Statute Exclude Homebuilders from Anti-Deficiency Protection

Last Tuesday, April 20, 2014, Arizona’s Governor, Jan Brewer, signed HB 2018 into law. This bill closes a long-standing loophole that allowed commercial homebuilders to take advantage of Arizona’s anti-deficiency statute,...more

4/29/2014 / Anti-Deficiency Provisions , Construction Contracts , Contractors , National Association of Home Builders

California Amends its Anti-Deficiency Statute

As of January 1, 2014, California amended its anti-deficiency statute to stop mortgage lenders from “collecting” from homeowners on post-foreclosure debts. Although the amendments were designed to tackle a purely...more

2/4/2014 / Anti-Deficiency Provisions , Debt , Foreclosure , Mortgages

A Non-Purchase Money Second Deed of Trust is Not Protected by Arizona’s Anti-deficiency Statute

Arizona anti-deficiency laws do not prohibit a non-purchase money lender from suing on its note after foreclosure by a senior lender. In Wells Fargo Bank, N.A. v. Brewer, No. 1CA-CV 12-0383 (Ariz. Ct. App. May 21, 2013...more

9/5/2013 / Anti-Deficiency Provisions , Deed of Trust , Foreclosure , Loans , Mortgages , Purchase Money Loans , Wells Fargo

A Lender Holding Two Liens Can Foreclose on the Senior Lien and Sue on the Junior Lien

In Wells Fargo Bank, N.A. v. Riggio, No. 1CA-CV-12-0430 (Ariz. Ct. App. June 4, 2013), the Arizona Court of Appeals held: (i) that the “merger of rights” doctrine does not “merge” a lender’s first and second lien into a...more

8/19/2013 / Anti-Deficiency Provisions , Banks , Foreclosure , Liens , Senior Lenders

Arizona’s Anti-deficiency Statute, A.R.S. 33-814(G), Cannot be Prospectively Waived Says the Court of Appeals

In Parkway Bank & Trust Co. v. Zivkovic, 662 Ariz. Adv. Rep. 26 (Ct. App. 2013), the Arizona Court of Appeals held that provisions in loan documents purporting to waive the applicability of A.R.S. § 33-814(G) violate Arizona...more

7/15/2013 / Anti-Deficiency Act , Anti-Deficiency Provisions , Borrowers , Foreclosure , Lenders , Mortgages

A Person Owning a Fractional Interest in a Vacation Home is Protected by Arizona’s Anti-deficiency Statute

In Independent Mortgage v. Alaburda, the Arizona Court of Appeals held that Arizona’s anti-deficiency statute, A.R.S. § 33-814(G), precluded a lender from suing its borrowers for a deficiency after foreclosing on the...more

6/27/2013 / Anti-Deficiency Provisions , Borrowers , Foreclosure , Lenders , Vacation Homes

Benjamin Reeves

Snell & Wilmer

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