M & I BANK, FSB v. Coughlin

ORDER

NEIL V. WAKE, District Judge.

I. Introduction

The question posed is whether an Arizona statute, A.R.S. § 33-814(D), bars a lender’s action against third parties associated with a deed of trust loan transaction — that is, persons other than the borrower or others liable on the note — if the lender brings that action more than 90 days after the trustee’s sale disposing of the property securing the note.

Plaintiff M & I Bank alleges that it was tricked into funding a $285,300 real estate loan to Defendant Ty Coughlin. His annual income was represented as exceeding $360,000, when it was only…