 Summary of an Arizona Foreclosure Documents Needed to Begin Foreclosure 1. A copy of the RECORDED Deed of Trust A trust deed may be foreclosed by private sale or by judicial foreclosure in Arizona. Because it's more expeditious, private sale is the normal method of foreclosure. Generally, a mortgage, as opposed to a deed of trust, must be judicially foreclosed. A private trustee's sale usually begins with the law firm being designated as trustee. Based on a foreclosure report from a title company, all interested parties are notified of the sale by publication, posting on the property (if possible) and at the county courthouse, recording in the real estate records, and by mailing. The method of notice is a written notice of trustee's sale, which must also contain a statement of the reasons for the foreclosure, and that inferior liens may be terminated by the foreclosure sale. A trustee's foreclosure sale is generally held at the county courthouse. It cannot be held earlier than ninety days after the notice of sale is recorded. At any time up to and including the day before the sale, any interested party may reinstate the loan by paying all delinquent payments and all costs incurred, including attorney's fees. The trustee foreclosure sale may be continued up to sixty days. After a trustee sale, there is no right of redemption (except as may be provided by Federal law (e.g. IRS lien)). On the other hand, after a judicial foreclosure, the owner has a six-month redemption period and each lienor in order of priority has a five-day redemption period thereafter, if the owner does not redeem. If the property foreclosed on is a single one family or two family residence of less than two and one-half acres, a deficiency cannot be obtained on a purchase-money loan in a trustee foreclosure. The same is true with regard to a judicial foreclosure, if the loan was a purchase-money loan (fully or partially). There is an exception to this in judicial foreclosures, namely, if the property has lost value because of waste committed or permitted by a liable party, a judgment may be entered against that liable party for that lost value. In any other instance deficiency is possible in Arizona. In a judicial foreclosure, it would be part of that process. In a trustee foreclosure, a separate suit must be filed within ninety (90) days of the trustee's sale; otherwise, no deficiency may be obtained. |
| Arizona Capital – Phoenix The Grand Canyon State Non – Judicial State Bar of Arizona Foreclosure *Last postponement sale date cannot
be more than 90 days after original sale date. |
