The Offer Company explaining deficiency judgments in Arizona foreclosure

What is a deficiency judgment?

A deficiency judgment happens when a home is sold at foreclosure for less than the amount owed, and the lender tries to collect the difference from the homeowner.

Example: If you owe $300,000, but the home sells for $250,000, the $50,000 gap is the “deficiency.” In some states, lenders can pursue you for that balance.

Arizona’s protections against deficiency judgments

Arizona law offers important protections for homeowners:

Trustee’s sales (most common foreclosures): No deficiency judgment is allowed on single-family or two-family primary residences on 2.5 acres or less.
Judicial foreclosures (rare): A deficiency may be possible, depending on the loan type and circumstances.
Second mortgages or HELOCs: These lenders may still pursue collection separately, even if the first mortgage was wiped out in foreclosure.

What this means for you

If your Arizona home goes through a trustee’s sale, the foreclosure generally wipes out the debt, and you won’t owe extra to your lender. But if you have other loans, or if the foreclosure is judicial, you need to understand your risk.

Your options to protect yourself

Act before foreclosure — loan modification, reinstatement, or repayment can stop the process entirely.
Sell before auction to protect equity and avoid uncertainty.
Review second mortgages or liens with experts to understand what could survive foreclosure.

Click here to talk to Hope — our AI assistant can explain whether a deficiency judgment applies to your situation and connect you with local experts.

Proof from Arizona homeowners

“I thought I’d still owe money after foreclosure. The Offer Company explained Arizona’s laws and gave me peace of mind.”
— Tom K., Phoenix

Why trust The Offer Company

We’ve helped Arizona families understand their rights and protect themselves from foreclosure risks. With Hope, our AI assistant, you’ll get clear answers and next steps any time of day.