Arizona Foreclosure Process and Laws


Quick Facts About the Arizona Foreclosure Process

Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Primary Security Instruments: Deed of Trust, Mortgage
Timeline: Typically 90 days
Right of Redemption: None

Deficiency Judgments Allowed: Varies

A judicial or non-judicial foreclosure process may be used by lenders on mortgages in default in Arizona.

Judicial Foreclosure
When there is no power of sale clause in a mortgage, the judicial process is done by filing a lawsuit to obtain a court order to foreclose. The property will then be sold to the highest bidder.

Non-Judicial Foreclosure
When a power of sale clause exists in a mortgage, then the lender or his representative has the power to sell the property when the borrower defaults.

Power of Sale Foreclosure Guidelines
If the power of sale clause states the time, place and terms of sale, then this procedure must be followed. If not, the non-judicial foreclosure is done.

A notice of sale must first be recorded if the property is going to be sold. Within five days of recording, the trustee must mail a copy of the notice of sale to the parties included in the trust deed. The notice must also be published in the county newspaper where the property is located, once a week for four consecutive weeks. The last notice should not be less than 10 days before the date of sale. This can also be done by posting a notice of sale on the property or courthouse in the county 20 days before the date of sale.

The property is sold to the highest bidder which needs to be paid by 5pm of the next day. If the bidder fails to pay by 5pm, the trustee has the option of postponing the sale and putting up a new notice. But the trustee also has the option of extending the deadline for the bidder to pay the amount.

Once the deal is completed, the money will go to the deed of trust that was foreclosed. The bidder will get the trustee’s deed as evidence of foreclosure property sale.

A deficiency suit is not allowed against a person who has lost a property with less than 2.5 acres at foreclosure as long as the property was a single one-family or two-family house. For other properties, deficiency suits are allowed but is bounded by the balance owed and a fair market price of the property. This must also be done within 90 days of the power of sale foreclosure.

Foreclosure Avoidance Counseling

HUD-approved housing counseling agencies are available to provide you with the information and assistance you need to avoid foreclosure. As part of President Obama’s comprehensive Homeowner Affordability and Stability Plan (HASP), you may be eligible for a special Making Home Affordable loan modification or refinance, to reduce your monthly payments and help you keep your home.

If you need help understanding the Making Home Affordable programs, you can use this search tool to find a counseling agency in your area that will provide you with free foreclosure prevention services. If you are eligible for the loan modification or refinance program, the counselor will work with you to compile an intake package for your servicer.

Foreclosure prevention counseling services are provided free of charge by nonprofit housing counseling agencies working in partnership with the Federal Government. These agencies are funded, in part, by HUD and NeighborWorks® America. There is no need to pay a private company for these services.

Phoenix Field Office

Dept. of Housing and Urban Development
One North Central Avenue, Suite 600
Phoenix, AZ 85004

Phone: (602) 379-7100

Fax: (602) 379-3985
TTY: (602) 379-7181

Jurisdiction: Arizona area from Casa Grande North

Rebecca Flanagan
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Tucson Field Office

Dept. of Housing and Urban Development
160 North Stone Avenue
Tucson, AZ 85701

Phone: (520) 670-6000

Fax: (520) 670-6207

Jurisdiction: Arizona area South of Casa Grande

Rebecca Flanagan
Acting Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.

Monday through Friday