How does federal bankruptcy law affect the 90-day deadline to file a deficiency action under Arizona real estate law after a trustee sale (non-judicial foreclosure)? That was the question addressed in In re Rader.
Under Section 33-814 of Arizona real estate statutes, in order to pursue collection of a deficiency, a lender must file or maintain a lawsuit within 90 days after the trustee sale. Otherwise, the debt is deemed satisfied/paid in full for the amount for which the property was sold at the trustee sale. Of course, a lender may only file a claim for a deficiency if the claim is not barred by one of Arizona’s two anti-deficiency statutes. [Read more…]