There is still a further twist that the lenders are applying. Some out-of-state lenders have inserted provisions in the loan documents that the lender’s home state laws with no deficiency protections apply. This issue remains up in the air, and we will have to await an answer from a future Court to address this issue. Given Arizona’s well-established consumer protection policy, lenders should not be able to strip Arizona residents from their consumer protections by simply claiming that a law of another state law applies.


Under Arizona law, a homeowner is protected from financial ruin when purchasing a home, and the homeowner cannot be required to waive that right in advance in the loan documents. The homeowner should be careful, however, if the lender has inserted a provision that the laws of another state, which do not have anti-deficiency protections, governs those documents. Therefore, be on guard if you are the homeowner and are faced by a claim from a lender that you waived the anti-deficiency statute protections in your loan documents.

If the lender asserts that the laws of another state are applicable and seeks a deficiency against the homeowner, please contact an attorney in order to assist you in asserting your rights under Arizona law.

Lat J. Celmins

Foreclosure For Sale Real Estate Sign Isolated on White.