The Arizona Court of Appeals this week upheld a trial court’s dismissal of a bank’s attempt to cure a defective deed of trust as untimely. In Deutsche Bank National Trust Co. v. Pheasant Grove, LLC, the Court of Appeals held that the bank waited too long to correct a defective property description on a $1.2 million loan on a Scottsdale residence given in 2003. When the homeowners subsequently defaulted on a second loan of $800,000, the home was sold at a foreclosure sale in 2010. The bank filed a complaint to reform its deed of trust in 2015, but the trial court held that the bank had waited too long, nearly twelve years, well beyond the three-year statute of limitation for reforming a title.
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