Anti-deficiency law and short sales Posted by: sstrand
Posted on : 3/12/2010 1:34:52 AM I've heard a variety of opinions on whether Arizona's anti-deficiency law covers short sales. Shaun mentioned it in his presentation to the local REIA, as did the RE attorney whose article is the subject of Shaun's latest short sale blog (http://blog.shortsalewealth.com/what-do-you-think/). But I've heard from others that the law does NOT include short sales, and reading the law itself it appears it does not.
I've also heard banks are selling the rights to pursue deficiences on their short sales (unless the payoff letter states they will not pursue deficiency).
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No deficiency protection for AZ short sales Posted by: Clarity Software Engineer, part-time investor
Posted on : 3/12/2010 12:41:22 PM My understanding of the AZ anti-deficiency law is that it applies only to properties that have been sold at auction. So no, it doesn't apply to short sales in Arizona - you still have to try to negotiate them away.
I was just at a short sale mastermind group meeting this week, and several very successful negotiators were there agreeing that they have not always been successful in negotiating away deficiencies on AZ short sales.
Haven't heard about lenders selling rights to pursue deficiencies - I wonder how that would be achieved legally. Wouldn't the warranty deed need to state that the lender has this right?
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