Pub. 11 2021 Issue 1

13 PUB. 10 2020 ISSUE 4 Ariz. 265, 270, 418 P.3d 1038, 1043 (App. 2018,) review denied (July 3, 2018). See also, Ancala Holdings L.L.C. v. Price, 220 Fed. App. 569, 572 (9th Cir. 2007) (a cause of action “accrues” each time a party fails to perform as required by the contract) and Ortiz v. Trinity Fin. Servs. LLC, 98 F.Supp. 3d 1037, 1042 (D. Ariz. 2015) (each time the debtor fails to make a payment when it becomes due, a separate breach occurs and a cause of action “accrues,” starting the clock). The rules discussed above concerning de - termining the date of “accrual” of a cause of action based upon a defaulted mortgage loan installment promissory note have been applied consistently by the Arizona Court of Appeals and the United States District Court for the District Of Arizona in the following line of cases: Andra R. Miller Designs LLC v. US Bank NA, 244 Ariz. 265, 418 P.3d 1038 (AZ App. 2018), review denied (July 3, 2018). Baseline Financial Services v. Madison, 229 Ariz. 543, 278 P.3d 321 (AZ App. 2012); Navy Federal Credit Union v. Jones, 187 Ariz. 493, 930 P.2d 1007 (AZ App. 1996); Hummel v. Rushmore Loan Management LLC, 2018 WL 3744858 (D. AZ 2018); and Ortiz v. Trinity Financial Services LLC, 98 F.Supp. 3d 1037 (D. AZ. 2015). Furthermore, as was fully discussed above, the Arizona Supreme Court, in Mertola, LLC v. Santos, 244 Ariz. 488, 490, 796 Ariz. Adv. Rep. 16, 422 P.3d 1028, 1030 (2018) distinguished installment debt from credit card debt in the context of selecting the correct rules to determine when a cause of action “accrues” to calcu- late the six-year statute of limitation. EXAMPLE #1: Loan Maturity Date: 1/1/2021. Last Payment: 1/1/2015. Current Date: 1/2/2021. Both a Collection Lawsuit and a Foreclosure Sale are barred. EXAMPLE #2: Loan Date: 1/1/2010. Loan Maturity Date: 1/1/2040. Loan is not accelerated. Last Payment Made: 1/1/2015. Current Date: 1/2/2021. The limitations period bars a suit on any payments due under the loan on 1/1/2015 or earlier. The lender may, however, still commence a Collection Lawsuit or Foreclosure Sale based upon the installment payments owing from 2/1/2015 going forward. 8. Do the same rules apply to deter- mine when a cause of action “accrues” to pursue a non-judicial Foreclosure Sale of real property as apply to a matured or un-matured installment promissory note? Short answer: Yes. See, Andra R. Miller Designs LLC v. US Bank, 244 Ar iz. 265, 269, 418 P.3d 1038, 1042 (AZ Ct. App. 2018), review denied (July 3, 2018). 9. What qualifies as an affirmative act to accelerate an un-matured install- ment promissory note? Short answer: Typically, sending a Notice of Acceleration or Demand Letter or re- cording a Notice of Trustee’s Sale makes continued on page 14