Guide to the Foreclosure Process in Arizona
The economic downturn in America has impacted many Arizona residents. If you are having trouble paying your mortgage or have already started receiving angry letters or a Notice of Trustee Sale from your lender, you may want to know more about the foreclosure process in Arizona. This guide will help you to understand Arizona's foreclosure process (which is quite rapid and can take your home much more quickly than in some other states). Arizona homeowners do have some opportunities to avoid the foreclosure process in Arizona, but you will need to act quickly to save your home and your credit.
Step 1: Foreclosure Begins
While theoretically your lender can begin the foreclosure process in Arizona after you're only late by one payment, it's extremely unlikely that this will ever happen to you. There are currently so many foreclosed houses in Arizona that your lender wants to avoid foreclosure if at all possible. Foreclosed houses don't make as much money for a mortgage lender as mortgages do, so lenders are often quite willing to work with homeowners to avoid the foreclosure process in Arizona entirely.
Usually, your lender will try to contact you for several months (typically at least three, and sometimes as long as 12) before initiating foreclosure. If you do not talk to your lender and work out a mortgage modification, forbearance, or payment plan in this time, your lender is likely to begin foreclosing on you. The foreclosure process in Arizona is non-judicial, which means that the court doesn't have to get involved. This is bad news for you as a homeowner, since it takes away some of your legal rights and makes it much faster for lenders to foreclose.
Step 2: Notice of Trustee Sale
The foreclosure process in Arizona formally begins when a Notice of Trustee Sale is filed with your county recorder's office. This notice will be advertised during four consecutive weeks in your local newspaper. You will also be served with a copy of the notice on your property or by certified mail.
The notice must be issued at least 90 days before the sale, and it is possible to have the trustee sale postponed significantly. This 90 day period gives you additional time to work with your lender to avoid the foreclosure process in Arizona. You may also want to consult with a financial counselor or a lawyer to figure out more options. Because Arizona has no “right of restitution” law, once the sale is complete, you will no longer have options to keep your home, so it is imperative that you stop the foreclosure process in Arizona prior to the sale.
Step 3: The Trustee Sale
If you are unable to sell your home or work out an agreement with your lender in the 90 days before the trustee sale, your home will be sold at auction to the highest bidder. Sometimes, no bids will be made, and your property will be owned by your mortgage lender. Other times, a buyer may purchase the house. You can then be evicted from the premises. You will have no chance to make good on your mortgage after the sale—the title will simply be transferred and you will lose your home.
