FAQ - EXCEPTIONS THAT COULD STILL MAKE ONE LIABLE - FORECLOSURE IN ARIZONA
EXCEPTIONS THAT COULD STILL MAKE ONE LIABLE:
This rule will not apply if the debtor has allowed the property to be wasted by such things as his own bad maintenance, by vandalism of him or others or uninsured losses before the foreclosure sale (voluntary waste). This is A.R.S. ' 33-729(A). Also: If money was taken out of the loan for other purposes than purchase of the property (lines of credit, home equity loans and even purchase money loans where there was cash-back that was itemized as such), these anti-deficiency rules do not apply and the lender could see that cash directly from the borrower as a result of or in addition to the foreclosure. Id. Beauvais. The anti-deficiency rules also do not apply to a loan guarantee executed separately. As to the guarantor, they are liable.