Can a Lender Sue a Borrower for a Deficiency Judgment if the Lender is Still Owed Money After a Foreclosure Sale in Arizona?
Sometimes. A lender may not sue for a deficiency judgment if the property is a single family or two family dwelling and is 2.5 acres or less in size. However, in other cases, a lender may sue a borrower for a deficiency judgment for the loan amount that is still owed after the foreclosure sale. The lawsuit for a deficiency judgment must be brought within 90 days of the foreclosure sale.