Morgan AZ Financial, L.L.C. v. Gotses

OPINION

SWANN, Judge.

¶ 1 This is a deficiency action following trustee’s sales of two parcels of real property. The borrower asserted common-law defenses to liability under the promissory notes. The superior court held that, under A.R.S. § 33-811(C), these defenses had been waived and the lender’s successor-in-interest was entitled to summary judgment. We reverse and remand. We hold that common-law defenses to a borrower’s liability under a note generally survive a trustee’s sale and may be asserted in a deficiency action.

FACTS AND PROCEDURAL HISTORY

¶2 William Gotses executed promissory notes…