Finance

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 residence✓ Correct
CRequired to obtain a court order before selling the property
DAllowed to take possession of the property immediately upon default

Explanation

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.

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