In Arizona, absent some agreement, rule or statute to the contrary, a lender can generally seek a deficiency judgment after foreclosing on a property securing a loan, if the property does not sell for enough money to satisfy the debt in full. Fortunately for most typical Arizona homeowners, the Arizona legislature has adopted anti-deficiency statutes that preclude such recourse in many typical fact scenarios. In addition, the parties to a real estate contract may expressly agree that the lender’s only recourse is foreclosure on the property itself.

In the absence of express agreement, Arizona law provides protection for borrowers against potential liability stemming from the sale of a property at less than market value in a foreclosure sale. The borrower, however, must act quickly to protect his or her rights. If the property sells for less than the amount owed to the lender, the borrower is entitled to ask a court to determine the property’s fair market value. In the event the court agrees that the far market value is higher than the sales price the buyer gets credit for the higher amount. This not only protects the borrower from an unfairly low price, but encourages lenders to make a credit bid for an amount near fair market value.

There is an even more favorable statute protecting borrowers against deficiency judgments involving single or dual-family dwellings on 2 1/2 acres or less where the loan is “purchase money,” meaning it was used to pay the purchase price of the property. Typically, loans used to refinance purchase money loans are also considered purchase money loans, although the use of some of the proceeds to pay other debts, obtain cash out, or for other uses may expose the borrower to recourse liability.

Significantly, even if the loan is not a purchase money loan, the lender’s election to utilize non-judicial foreclosure on the deed of trust renders it non-recourse by operation of law. The lender may, however, instead seek judicial foreclosure, which is more expensive and time-consuming, but preserves the ability of the lender to obtain a deficiency judgment. This anti-deficiency statute also allows a lender to seek a deficiency judgment against the borrower in the event of waste. Because interpretation of the Arizona anti-deficiency statutes and related real estate laws can be very complicated, borrowers and lenders are advised to seek the assistance of an experienced real estate attorney with any questions or concerns they may have.

Foreclosure is the legal and professional proceeding in which a mortgagee, or other lien holder, usually a lender, obtains a court ordered termination of a mortgagor’s equitable right of redemption. Many homes go into foreclosure because the homeowner stops making payments.This can happen for many reasons including losing your job or income, becoming unable to work due to medical reasons, carrying too much debt, going through a divorce, etc.

The circumstances that put a home into foreclosure are unfortunate and unpredictable, and in today’s economy, homeowners are losing their homes at an alarming rate. As unsettling this economic reality may be, bank owned homes can be a real opportunity for buyers. Prices have never been lower, and if you’re a first time home buyer or a real estate investor, this presents an unprecedented buying opportunity. The market is now flooded with vacant homes that are being sold below their appraised value, which makes finding a foreclosure property a good investment.

If you are thinking about finding a foreclosure property in Arizona to buy, you’re in the right place! There are thousands of websites online that offer foreclosure listings. Some of them are free; others aren’t. Foreclosure listings in the State of Arizona are public information, so you should focus on finding free foreclosure listings. In fact, a simple Google search using the terms ”free foreclosure listings Arizona” should bring up enough results to keep you busy for days!

Now that you have all of these results, how do you know which site is the best? Here are a few things to keep in mind when you’re trying to find a foreclosure property: First, make sure the site is really free. You should be able to search all available foreclosure properties without having to give up your credit card information. If a credit card is required to do a ”free” search, go find another site!

Next, you should test the site’s search capabilities. Some sites will provide residential foreclosure listings only; some will provide commercial property listings; others will provide both. What is important is that they have the listings you’re interested in and that you’re able to refine your search to narrow down the results.Being able to define your unique criteria (location, price range, size, condition, age, etc.) is crucial when there are so many listings available.

Finally, you should find out who owns the website. It would be in your best interest to use a site that is run by trusted real estate broker or agent with experience buying and selling foreclosures. An experienced agent can help you identify the right foreclosure properties in Arizona, provide property comparables and valuations, and make sure the process of searching goes as smoothly as possible.