Thanks for the chance to help. I am an Arizona attorney with over 12 years military law
It sounds like this company does not want to foreclose. The statement
they cannot foreclose on my sons home even though he has waived all rights under SCRA, because Arizona prohibits that
Is not accurate.
The SCRA is a federal law. It trumps state laws, so if the SCRA did not allow a member to waive its application, that would trump any state law to the contrary.
But the SCRA will allow a member to affirmatively waive its application.
The member can waive the application, if they do so in writing.
That said, if the company in question does not want to foreclose? They do not have to foreclose. There is no Arizona law that requires any company to foreclose. So it sounds like this company is either confused, or does not want to foreclose and is making up reasons to tell you the reasons for their decision.
But to answer your question, the SCRA allows a member to waive application, and Arizona law is silent on this (so it does not prevent such a waiver)
Please let me know if you have more questions, happy to help if I can