Borrowers Granted Greater Protection

 
The Arizona Court of Appeals has recently issued three opinions interpreting Arizona’s anti-deficiency statutes to afford debtors greater protection.  In December 2011, the Court held that Arizona’s anti-deficiency statute applies to debtors that purchase an undeveloped lot intending to occupy the lot upon building a house even if they do not actually build and occupy the house.  In a separate opinion, the Court held that even if a borrower refinances a purchase money mortgage, the refinancing does not destroy the borrower’s anti-deficiency protection.  Most recently, the Court determined that Arizona’s anti-deficiency law prevents a deficiency judgment after foreclosure of a fractional interest in a vacation accommodation.