Protection Of Anti-Deficiency Statute Cannot Be Waived

  On June 13, 2013, the Arizona Court of Appeals ruled that the Arizona anti-deficiency statute cannot be waived in advance by a homeowner. Parkway Bank and Trust Company v. Joseph Zivkovic, 1 CA-CV 12-0612. Facts:   Zivkovic personally guaranteed a loan for his business, listing himself as the borrower and incorporating a previous loan…

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Trustee’s Sale May Recoup Land Debt

Question: Seven years ago, when the land market was booming, we sold 40 acres of our farmland near Tonopah in western Maricopa County for $1,200,000. The buyer paid $200,000 cash to us, and we did seller carryback financing for seven years of annual payments, interest only, on the balance of $1,000,000. The buyer has made…

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Strategic Defaults Are Not “Illegal”

Hypothetical: Microsoft founder Bill Gates owns a rental home in Arizona which is “underwater” because the value of the home is less than the amount owed on the mortgage used to buy the home.  Bill Gates intentionally stops making the mortgage payments, and the mortgage lender forecloses. Issues: Does Bill Gates have any personal liability…

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