FinanceIntermediateArizona Exam

In Arizona, a lender who forecloses on a deed of trust through the trustee's sale process (non-judicial foreclosure) is generally:

AEntitled to a deficiency judgment for the full loan balance
BProhibited from seeking a deficiency judgment on a purchase-money mortgage on a residenceCorrect
CRequired to obtain a court order before selling the property
DAllowed to take possession of the property immediately upon default

Why Prohibited from seeking a deficiency judgment on a purchase-money mortgage on a residence Is Correct

Answer B: Prohibited from seeking a deficiency judgment on a purchase-money mortgage on a residence

Arizona's anti-deficiency statute generally prohibits lenders from seeking deficiency judgments after a trustee's sale on a purchase-money mortgage secured by a single-family or two-family dwelling on 2.5 acres or less.

Exam Tip: Finance

Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.

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