Lenders are now getting more creative in their collection efforts.  Often the homeowner is dealing with a national out-of-state lender, and it is difficult to get the out-of-state lender representative to recognize Arizona’s consumer protection laws. If one has a problem and the out-of-state lender persists in its collection efforts, you should contact an attorney to discuss Arizona’s anti-deficiency consumer protection rights.


The out-of-state lenders are now applying a new twist.  Lenders are looking over their documents, some of which contain provisions whereby the homeowner initially waived the consumer protection rights under Arizona’s anti-deficiency statute. The lender then asserts a claim for the full amount of the loan plus costs and fees, and the homeowner is exposed to a deficiency claim.

The Arizona Court of Appeals in Parkway Bank and Trust Company v. Zivkovic, 662 Ariz. Adv. Rep. 26 (2013) determined that Arizona has a strong public policy regarding homeowner consumer protections and that the anti-deficiency statute precludes a waiver of those protections in advance. The borrower/homeowner may not waive the anti-deficiency protections in advance, otherwise the lender can simply get around Arizona law by inserting an anti-deficiency waiver provision in each loan document. In short, the consumer borrower cannot be required to waive Arizona consumer protections in advance.

Lat J. Celmins

Foreclosure For Sale Real Estate Sign Isolated on White.