If your home is foreclosed on and your home is worth less than the loan, Arizona law provides for protection from being sued for that deficiency. This prevents a lender from recovering a money judgment against you if your home is “upside down” if the loan was used to purchase the home. Exceptions to the law include where the property is more than 2.5 acres, or if it has 3 or more units (such as a triplex). For construction loans the law is in flux, with the current case law requiring a new home to be built “from scratch”, and the anti-deficiency protections not applying if the home was not “substantially completed” or the property was never actually used as a dwelling. Although foreclosures have been relatively rare lately, the impact of the Covid-9 crises could change that. If you are facing foreclosure, ask me how you can put yourself in the best position possible before the sale.