Arizona's Anti-Deficiency Protection
Arizona law provides significant protection for residential homeowners. Under A.R.S. § 33-814(G), certain properties are protected. The property must be two and a half acres or less. It must serve as a single one-family or two-family dwelling. For these properties, the lender cannot pursue a deficiency judgment after a trustee sale. The sale price is treated as full satisfaction of the debt.
When the Protection Does Not Apply
The anti-deficiency rule does not cover commercial property, vacant land, or large investment properties. Properties over two and a half acres are not protected. Residential construction loans where the home was never finished or occupied also fall outside the rule. For these properties, the lender has ninety days after the trustee sale to file under A.R.S. § 33-814(A).