The Arizona State Land department "has issued notices of default or canceled the deals on properties that sold for a total of about $554 million, according to an analysis of agency records" done by the East Valley Tribune.
A total of almost $970 million of land sales since 2003 are in default or had an extension of their loans. That's out of a record $1.84 billion in sales during that period.
The good news for the State is that they keep the down payment and all payments made up to the time of the default and the land comes back to the Land dept. [right, State trust lands are in blue. Credit, AZ State Land Dept.]