A DEFICIENCY ACTION IS SUBJECT TO ARBITRATION CLAUSE IN A PROMISSORY NOTE

 

The Arizona Court of Appeals recently ruled that in Arizona the potential recovery in a deficiency action arises from the promissory note and not from the non-judicial foreclosure.  A deficiency action therefore is subject to an arbitration clause in a promissory note.  Nat’l Bank of Ariz. v. Schwartz, 1 CA-CV 10-0772, 6/26/12.