A. Except as provided in subsections F, G and H of this section, within ninety days after the date of sale of trust property under a trust deed pursuant to section 33-807, an action may be maintained to recover a deficiency judgment against any person directly, indirectly or contingently liable on the contract for which the trust deed was given as security including any guarantor of or surety for the contract and any partner of a trustor or other obligor which is a partnership. In any such action against such a person, the deficiency judgment shall be for an amount equal to the sum of the total amount owed the beneficiary as of the date of the sale, as determined by the court less the fair market value of the trust property on the date of the sale as determined by the court or the sale price at the trustee's sale, whichever is higher. A written application for determination of the fair market value of the real property may be filed by a judgment debtor with the court in the action for a deficiency judgment or in any other action on the contract which has been maintained. Notice of the filing of an application and the hearing shall be given to all parties to the action. The fair market value shall be determined by the court at a priority hearing upon such evidence as the court may allow. The court shall issue an order crediting the amount due on the judgment with the greater of the sales price or the fair market value of the real property. For the purposes of this subsection, "fair market value" means the most probable price, as of the date of the execution sale, in cash, or in terms equivalent to cash, or in other precisely revealed terms, after deduction of prior liens and encumbrances with interest to the date of sale, for which the real property or interest therein would sell after reasonable exposure in the market under conditions requisite to fair sale, with the buyer and seller each acting prudently, knowledgeably and for self-interest, and assuming that neither is under duress. Any deficiency judgment recovered shall include interest on the amount of the deficiency from the date of the sale at the rate provided in the deed of trust or in any of the contracts evidencing the debt, together with any costs and disbursements of the action.
B. If a trustee's sale is a sale of less than all of the trust property or is a sale pursuant to one of two or more trust deeds securing the same obligation, the ninety day time limitations of subsection A of this section shall begin on either the date of the trustee's sale of the last of the trust property to be sold or the date of sale under the last trust deed securing the obligation, whichever occurs last.
C. The obligation of a person who is not a trustor to pay, satisfy or purchase all or a part of the balance due on a contract secured by a trust deed may be enforced, if the person has so agreed, in an action regardless of whether a trustee's sale is held. If, however, a trustee's sale is held, the liability of a person who is not a trustor for the deficiency is determined pursuant to subsection A of this section and any judgment for the deficiency against the person shall be reduced in accordance with subsection A of this section. If any such action is commenced after a trustee's sale has been held, it is subject, in addition, to the ninety day time limitations of subsections A and B of this section.
D. If no action is maintained for a deficiency judgment within the time period prescribed in subsections A and B of this section, the proceeds of the sale, regardless of amount, shall be deemed to be in full satisfaction of the obligation and no right to recover a deficiency in any action shall exist.
E. Except as provided in subsection F of this section, the provisions of this chapter do not preclude a beneficiary from foreclosing a deed of trust in the same manner as a real property mortgage. In an action for the foreclosure of a deed of trust as a real property mortgage the provisions of chapter 6, article 2 of this title are applicable.
F. A deed of trust may, by express language, validly prohibit the recovery of any balance due after trust property is sold pursuant to the trustee's power of sale, or the trust deed is foreclosed in the manner provided by law for the foreclosure of mortgages on real property.
G. If trust property of two and one-half acres or less which is limited to and utilized for either a single one-family or a single two-family dwelling is sold pursuant to the trustee's power of sale, no action may be maintained to recover any difference between the amount obtained by sale and the amount of the indebtedness and any interest, costs and expenses.
H. For deeds of trust that are originated after December 31, 2014, subsection G of this section does not apply to trust property as follows:
1. Trust property owned by a person who is engaged in the business of constructing and selling dwellings that was acquired by the person in the course of that business and that is subject to a deed of trust given to secure payment of a loan for construction of a dwelling on the property for sale to another person.
2. Trust property that contains a dwelling that was never substantially completed.
3. Trust property that contains a dwelling that is intended to be utilized as a dwelling but that is never actually utilized as a dwelling.
I. For the purposes of this section, a dwelling is substantially completed if either of the following occurs:
1. Final inspection is completed, if required by the governmental body that issued the building permit for the dwelling.
2. If a final inspection is not required by the governmental body that issued the building permit, the dwelling has been completed in all material respects as prescribed in the applicable ordinances and regulations of the governmental body that issued the building permit for the dwelling.
Notes of Decisions
Baker v. Gardner (1989)
ariz · cites it 64×
“§ 580b provided the following: No deficiency judgment shall lie in any event after any sale of real property for failure of the purchaser to complete his contract of sale, or under a deed of trust, or mortgage, given to secure payment of the balance of the purchase price of real…”
CSA 13-101 Loop, LLC v. Loop 101, LLC (2014)
ariz · cites it 41×
“Loop and the guarantors counterclaimed against CSA and filed a third-party claim against MidFirst for breach of the implied covenant of good faith and fair dealing.”
M & I BANK, FSB v. Coughlin (2011)
azd · cites it 51×
“The Current Structure of A.R.S. § 33-814 The dispute in this case turns on the meaning of one part of the Deed of Trust Act, A.”
First Credit Union v. Courtney (2013)
arizctapp · cites it 32×
“At trial, the Courtneys raised additional defenses to liability based on A.R.S. § 33-814. First Credit responded, contending the Courtneys had misinterpreted the statute and had, in any event, waived defenses based on § 33-814.”
CSA 13-101 Loop, LLC v. Loop 101, LLC (2013)
arizctapp · cites it 27×
“including, without limitation, a hearing to determine fair market value” under A.R.S. § 33-814. ¶ 4 Loop 101 defaulted on the loan in June 2009, and MidFirst initiated non-judicial foreclosure proceedings under the deed of trust.”
BMO Harris Bank, N.A. v. Wildwood Creek Ranch, LLC (2015)
ariz · cites it 18×
“The legislature recently amended A.R.S. § 33-814 to clarify that subsection (G) does not apply to trust property that was (1) developed for commercial resale to a third party, (2) never substantially completed, or (3) never used as a dwelling.”
United States v. Rezzonico (1998)
azd · cites it 13×
“Defendants moved for summary judgment, arguing that the United States’ action was barred by Ariz.Rev.Stat. § 33-814, Arizona’s *1113 anti-deficiency statute, because the action was not brought within ninety days of the date of the trustee sale.”
Arizona Bank & Trust v. James R. Barrons Trust (2015)
arizctapp · cites it 27×
“”) § 33-814(0), which precludes an action to recover a deficiency on a qualifying residential deed of trust, applies to guarantors in the same manner in which it applies to borrowers.”
Citibank (Arizona) v. Bhandhusavee (1996)
arizctapp · cites it 32×
“section 33-814 did not apply in this case because the amount of the judgment was already known by defendant: The purpose of the A.R.S. § 33-814 deficiency action is to determine the difference between the amount owed to plaintiff as determined by the Court and the fair mar *437…”
Tenet Healthsystem TGH, Inc. v. Silver (2002)
arizctapp · cites it 12×
“¶ 22 I agree completely with the majority's analysis of A.R.S. § 33-814 and with its reasoning and disposition concerning the writ of attachment.”
— Ariz. Rev. Stat. § 33-814(0) — 2 cases
Arizona Bank & Trust v. James R. Barrons Trust (2015)
arizctapp
“”) § 33-814(0), which precludes an action to recover a deficiency on a qualifying residential deed of trust, applies to guarantors in the same manner in which it applies to borrowers.”
Citibank (Arizona) v. Bhandhusavee (1996)
arizctapp
“section 33-814 did not apply in this case because the amount of the judgment was already known by defendant: The purpose of the A.R.S. § 33-814 deficiency action is to determine the difference between the amount owed to plaintiff as determined by the Court and the fair mar *437…”
— Ariz. Rev. Stat. § 33-814(1) — 1 case
— Ariz. Rev. Stat. § 33-814(A) — 38 cases
CSA 13-101 Loop, LLC v. Loop 101, LLC (2014)
ariz
“Loop and the guarantors counterclaimed against CSA and filed a third-party claim against MidFirst for breach of the implied covenant of good faith and fair dealing.”
CSA 13-101 Loop, LLC v. Loop 101, LLC (2013)
arizctapp
“including, without limitation, a hearing to determine fair market value” under A.R.S. § 33-814. ¶ 4 Loop 101 defaulted on the loan in June 2009, and MidFirst initiated non-judicial foreclosure proceedings under the deed of trust.”
M & I BANK, FSB v. Coughlin (2011)
azd
“The Current Structure of A.R.S. § 33-814 The dispute in this case turns on the meaning of one part of the Deed of Trust Act, A.”
— Ariz. Rev. Stat. § 33-814(B) — 3 cases
First Credit Union v. Courtney (2013)
arizctapp
“At trial, the Courtneys raised additional defenses to liability based on A.R.S. § 33-814. First Credit responded, contending the Courtneys had misinterpreted the statute and had, in any event, waived defenses based on § 33-814.”
M & I BANK, FSB v. Coughlin (2011)
azd
“The Current Structure of A.R.S. § 33-814 The dispute in this case turns on the meaning of one part of the Deed of Trust Act, A.”
— Ariz. Rev. Stat. § 33-814(C) — 11 cases
Tenet Healthsystem TGH, Inc. v. Silver (2002)
arizctapp
“¶ 22 I agree completely with the majority's analysis of A.R.S. § 33-814 and with its reasoning and disposition concerning the writ of attachment.”
Baker v. Gardner (1989)
ariz
“§ 580b provided the following: No deficiency judgment shall lie in any event after any sale of real property for failure of the purchaser to complete his contract of sale, or under a deed of trust, or mortgage, given to secure payment of the balance of the purchase price of real…”
First Credit Union v. Courtney (2013)
arizctapp
“At trial, the Courtneys raised additional defenses to liability based on A.R.S. § 33-814. First Credit responded, contending the Courtneys had misinterpreted the statute and had, in any event, waived defenses based on § 33-814.”
Citibank (Arizona) v. Bhandhusavee (1996)
arizctapp
“section 33-814 did not apply in this case because the amount of the judgment was already known by defendant: The purpose of the A.R.S. § 33-814 deficiency action is to determine the difference between the amount owed to plaintiff as determined by the Court and the fair mar *437…”
— Ariz. Rev. Stat. § 33-814(D) — 15 cases
United States v. Rezzonico (1998)
azd
“Defendants moved for summary judgment, arguing that the United States’ action was barred by Ariz.Rev.Stat. § 33-814, Arizona’s *1113 anti-deficiency statute, because the action was not brought within ninety days of the date of the trustee sale.”
M & I BANK, FSB v. Coughlin (2011)
azd
“The Current Structure of A.R.S. § 33-814 The dispute in this case turns on the meaning of one part of the Deed of Trust Act, A.”
First Credit Union v. Courtney (2013)
arizctapp
“At trial, the Courtneys raised additional defenses to liability based on A.R.S. § 33-814. First Credit responded, contending the Courtneys had misinterpreted the statute and had, in any event, waived defenses based on § 33-814.”
Baker v. Gardner (1989)
ariz
“§ 580b provided the following: No deficiency judgment shall lie in any event after any sale of real property for failure of the purchaser to complete his contract of sale, or under a deed of trust, or mortgage, given to secure payment of the balance of the purchase price of real…”
— Ariz. Rev. Stat. § 33-814(E) — 14 cases
Baker v. Gardner (1989)
ariz
“§ 580b provided the following: No deficiency judgment shall lie in any event after any sale of real property for failure of the purchaser to complete his contract of sale, or under a deed of trust, or mortgage, given to secure payment of the balance of the purchase price of real…”
— Ariz. Rev. Stat. § 33-814(F) — 8 cases
Baker v. Gardner (1989)
ariz
“§ 580b provided the following: No deficiency judgment shall lie in any event after any sale of real property for failure of the purchaser to complete his contract of sale, or under a deed of trust, or mortgage, given to secure payment of the balance of the purchase price of real…”
CSA 13-101 Loop, LLC v. Loop 101, LLC (2013)
arizctapp
“including, without limitation, a hearing to determine fair market value” under A.R.S. § 33-814. ¶ 4 Loop 101 defaulted on the loan in June 2009, and MidFirst initiated non-judicial foreclosure proceedings under the deed of trust.”
— Ariz. Rev. Stat. § 33-814(G) — 34 cases
BMO Harris Bank, N.A. v. Wildwood Creek Ranch, LLC (2015)
ariz
“The legislature recently amended A.R.S. § 33-814 to clarify that subsection (G) does not apply to trust property that was (1) developed for commercial resale to a third party, (2) never substantially completed, or (3) never used as a dwelling.”
Arizona Bank & Trust v. James R. Barrons Trust (2015)
arizctapp
“”) § 33-814(0), which precludes an action to recover a deficiency on a qualifying residential deed of trust, applies to guarantors in the same manner in which it applies to borrowers.”
First Credit Union v. Courtney (2013)
arizctapp
“At trial, the Courtneys raised additional defenses to liability based on A.R.S. § 33-814. First Credit responded, contending the Courtneys had misinterpreted the statute and had, in any event, waived defenses based on § 33-814.”
— Ariz. Rev. Stat. § 33-814(H) — 1 case
BMO Harris Bank, N.A. v. Wildwood Creek Ranch, LLC (2015)
ariz
“The legislature recently amended A.R.S. § 33-814 to clarify that subsection (G) does not apply to trust property that was (1) developed for commercial resale to a third party, (2) never substantially completed, or (3) never used as a dwelling.”
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