Arizona foreclosure process

In the state of Arizona, the foreclosure laws state that the actual foreclosure can be carried out either using the judicial or non-judicial process. If there is no right of redemption, the process will usually take only about three months to complete.

The judicial process will only be used if there is no power of sale clause present in the borrower’s loan documents. If the lender finds the borrower in default of their mortgage, they must first file a lawsuit with the county court to prove it. If the borrower does not attempt to bring their account current the court will go ahead and foreclose on the property. But the judicial process is rarely used in the sate of Arizona because it takes more time to complete the process, and the fees cost much more as well. This is why Arizona chooses the foreclosure route to be done through the non-judicial process.

The non-judicial process is used when there is a power of sale clause located in the borrower’s original loan documents. Through the power of sale clause, you as the borrower preauthorize your mortgage lender to sale their property if the borrower defaults on the loan. Your home will be sold to pay off the entire balance you still owe on the loan. The lender or a representative of their choice will handle the actual sale.

Arizona’s foreclosure law states that in order for the foreclosure process to begin using the non-judicial route, the lender must first file a Notice of Sale with the county where the defaulting property is located. After the notice is filed, within the first five days a copy of this notice must be certified mailed by the trustee, to all the parties within the deed of trust.

The notice of sale must additionally be published in the properties local newspaper for at least four straight weeks, one time per week. Last notice will be published no less than ten days prior to the actual sale. Sale will then proceed on the issued date, if the borrower does not fix the situation.