Tucson Arizona Foreclosure Help, Defense, Laws and Process


Before one thinks of acquiring property, it is advisable to seek help from an advice agency for you to make wise decisions. Should you obtain property through mortgage help, ensure that you have your attorney present to assist you in interpreting the terms and conditions set in the security instrument. However if you are unable to repay the loan according to the stipulated terms, the bank might take back the purchased property as a way of repaying the borrowed money. This is known as foreclosure.

Stop Foreclosure in Tucson, Arizona

In Tucson Arizona, government help is readily available to those who find themselves facing foreclosure. Here, the court and out of court foreclosure procedures apply. An out of court foreclosure process takes 3 months. In court foreclosure the lender sues the defaulter and records a notice of the awaiting lawsuit after which the borrower is alerted of the lawsuit. Should the borrower ignore the court order, the court will rule in favor of the lender after which the sheriff is allowed by the law to sell the asset to settle the debt. The sheriff presides over the sale 45 days after the county clerk authorizes the sale. For property redemption, the amount of money owed plus other costs must be paid. If there is no redemption, the asset is sold to the highest bidder. It is important to note that foreclosure can be stopped on grounds of bankruptcy.

If the deed of trust contains a clause allowing the lender to sell the asset should the borrower default, an out of court foreclosure takes place. A notice of sale is recorded by the trustee whereby the sale takes place at least three months after recording of the notice. The borrower has the right to halt the foreclosure on the day of the sale before 5p.m by settling the debt and any other costs incurred. A loan modification would come in handy to assist in settling the debt. The borrower is denied redemption after an out of court foreclosure takes place. Postponement of the sale is possible up to 90 days by announcement at the initially scheduled sale.

Tucson, Arizona Foreclosure Process

When the court authorizes a foreclosure, you automatically loose your property whereby it’s then auctioned to the highest bidder. Judicial foreclosure is not commonly used in Arizona. It is applicable only when the sale clause is not present in the loan deed. To obtain the foreclosure decree, the lender must first sue the borrower. However, for avoidance of foreclosure, you can pay up the loan and other costs incurred before the actual sale.

In non judicial foreclosure, the process is as follows:

  • A notice of sale is recorded at the county where the property is located.
  • A publication of the notice is posted in a weekly daily that is widely circulated for at least four weeks. The last circulation should be at least ten days before the date of the sale.
  • The trustee then conducts the sale whereby it is sold off to the highest bidder. Payment terms by the bidder should be in cash or its equivalent.
  • A trustee’s deed is issued to the highest bidder at the end of the sale. The sale is only considered complete once the bidder pays up the amount bid.

Deficiency judgment is not applicable if the foreclosed property was resting on a piece of land less than 2.5 acres. When you find yourself facing such a situation, find government assistance from human and urban development (H.U.D) is readily available. However, it will only be possible for you to qualify for another loan next time if you repair credit in advance.