Disable ads (and more) with a premium pass for a one time $4.99 payment
The correct response refers to the protection afforded to homes under Arizona's anti-deficiency legislation. This legislation was designed to protect homeowners from the risk of personal liability when they default on loans secured by their properties, specifically for one-to-four-family residential properties.
In Arizona, if a person takes out a loan secured by their primary residence and then faces foreclosure, they cannot be pursued for any deficiency between the amount owed on the mortgage and the foreclosure sale price. This shield exists to ensure that individuals are not left facing crippling debt due to the loss of their home.
Residential properties, such as the home on a 9,000 square foot lot, fall under this category, granting homeowners peace of mind that their personal assets may not be at risk if they face financial hardships leading to foreclosure. In contrast, commercial properties, businesses, or more complex arrangements related to non-residential assets do not qualify for the same protections, which is why those alternatives do not align with the essence of the anti-deficiency legislation.