How foreclosure works in Arizona
By Rent to Own Guide · Published · How we research
Short answer
| Process | Trustee's sale under a deed of trust; court foreclosure optional (§ 33-807) |
|---|---|
| Notice | Recorded, mailed, posted and published 4 weeks (§ 33-808) |
| Earliest sale | The 91st day after the notice of sale is recorded |
| Bidder deposit | $10,000; balance by 5 p.m. the next business day (§ 33-811) |
| Reinstatement | Until 5 p.m. the last business day before the sale (§ 33-813) |
| Redemption | None after a trustee's sale; generally 6 months after a court sale |
| Deficiency | Barred after a trustee's sale of most homes on 2.5 acres or less (§ 33-814) |
| Pre-foreclosure purchases | Foreclosure consultant law covers reconveyance deals (§ 44-1378) |
How an Arizona foreclosure works
An Arizona home loan secured by a deed of trust can be foreclosed by a trustee's sale, without going to court: the law gives the trustee a power of sale even if the deed of trust doesn't spell one out. The lender can choose a court foreclosure instead, but not both at once (A.R.S. § 33-807). For a trustee's sale:
- The notice of sale is recorded. The trustee records it with the county recorder, mails it by certified mail to the borrowers within 5 business days with a statement of the default, posts it on the property at least 20 days before the sale, and publishes it once a week for four weeks in a local newspaper (§ 33-808, § 33-809).
- At least 90 days pass. The sale can't be held before the 91st day after the notice is recorded (§ 33-807(D)).
- Objections must be raised before the sale. To stop the sale on a defense, the owner must get a court order before 5 p.m. on the last business day before it, or the defense is waived (§ 33-811(C)).
- The auction. The sale is held between 9 a.m. and 5 p.m. on a day other than a Saturday or legal holiday, at the place named in the notice: on the property, at a superior court building, or at the trustee's office (§ 33-808(B)).
Buying at an Arizona trustee's sale
- $10,000 to bid. Every bidder except the lender must give the trustee a $10,000 deposit in a form the trustee accepts (§ 33-810).
- The balance by 5 p.m. the next business day. A winning bidder who doesn't pay in time forfeits the deposit (§ 33-811(A)).
- Know the lender's bid. On the last business day before the sale, the trustee must make the lender's credit bid, or a good-faith estimate, available (§ 33-809(F)).
- Postponements happen. The trustee can announce a new date at the sale, up to 90 days out (§ 33-810(B)).
- Senior liens stay. The trustee's deed wipes out junior liens but stays subject to anything senior to the deed of trust (§ 33-811(E)). Run a title search first.
Buying a pre-foreclosure home in Arizona
Arizona regulates foreclosure consultants: anyone paid to stop or postpone a sale, “save” a home, or arrange a foreclosure reconveyance (§ 44-1378). A reconveyance is a deal where the owner sells during the foreclosure and gets an interest back, such as a lease, an option to buy or a contract for deed, that lets them stay. The rules apply once a notice of sale or foreclosure lawsuit is recorded against an owner-occupied home. A consultant:
- Can't take any interest in the home of an owner they've contracted with, can't collect fees before finishing the work, and can't take a power of attorney (§ 44-1378.02).
- Must give the owner the written contract at least 24 hours before signing, in 12-point type, notarized (§ 44-1378.03), and the owner can cancel until midnight of the third business day after signing (§ 44-1378.04).
Fraud or deceit in these deals, including a reconveyance, is a class 1 misdemeanor (§ 44-1378.06). Licensed real estate agents acting within their license and no-fee short-sale buyers are exempt. An outright purchase at a fair price, closed through a title company, is the clean way to buy before the sale.
Where to find Arizona foreclosure records
- County recorder: the notice of trustee's sale is recorded where the home is, and a cancellation is recorded if the loan is reinstated or paid (§ 33-813). Recorded notices show sales at least 90 days ahead.
- Newspaper notices: the four weekly ads are searchable for 12 months on Public Notices Arizona.
- Listings: Arizona pre-foreclosures on Foreclosure.com and Arizona foreclosures. Check the recorded notice before acting on a listing.
If the home in foreclosure is yours
You can reinstate the loan until 5 p.m. on the last business day before the sale by paying what's past due plus costs; the trustee's fee in that amount is capped at $600 or 0.5% of the unpaid principal, whichever is greater, and the trustee must give you the exact figure within 5 business days of a written request (§ 33-813). After a trustee's sale there is no right of redemption (§ 33-811(E)). After a court foreclosure sale, you generally have six months to redeem (§ 12-1282).
Arizona limits deficiencies: after a trustee's sale of a one- or two-family home on 2.5 acres or less, the lender can't sue for the rest of the debt, with exceptions for homes that were never finished or never lived in. Where a deficiency is allowed, the lender must sue within 90 days (§ 33-814). Our homeowner options guide covers the main choices.