Which of the following may be protected by Arizona anti-deficiency legislation?

Which of the following may be protected by Arizona anti-deficiency legislation?

• A. commercial building
• B. restaurant on 2 1/2 acres
• C. home on a 9,000 square foot lot
• D. business brokerage

Answer: (C)

The correct choice pertains to a home on a 9,000 square foot lot, as Arizona's anti-deficiency legislation specifically protects homeowners from personal liability after a foreclosure on their primary residence. This means that if a homeowner defaults on their mortgage and the property is foreclosed, the lender cannot pursue the borrower for any remaining balance on the mortgage after the property is sold. The protection is in place to ensure that individuals who lose their homes due to financial hardship are not burdened with further debt from the mortgage. In contrast, commercial properties and other types of real estate, such as a restaurant or a business brokerage, do not receive the same level of protection under the anti-deficiency laws. These properties may allow lenders to seek judgment for any remaining debt after foreclosure, thereby putting more financial risk on the owners of such properties. Thus, the measure aims primarily to protect primary residential properties, making the lot with a home eligible for this important safeguard.

The correct choice pertains to a home on a 9,000 square foot lot, as Arizona's anti-deficiency legislation specifically protects homeowners from personal liability after a foreclosure on their primary residence. This means that if a homeowner defaults on their mortgage and the property is foreclosed, the lender cannot pursue the borrower for any remaining balance on the mortgage after the property is sold.

The protection is in place to ensure that individuals who lose their homes due to financial hardship are not burdened with further debt from the mortgage. In contrast, commercial properties and other types of real estate, such as a restaurant or a business brokerage, do not receive the same level of protection under the anti-deficiency laws. These properties may allow lenders to seek judgment for any remaining debt after foreclosure, thereby putting more financial risk on the owners of such properties. Thus, the measure aims primarily to protect primary residential properties, making the lot with a home eligible for this important safeguard.