Arizona Foreclosure – What You Should Know
Every state in the US has its own foreclosure laws and regulations. Whether you are looking to buy an Arizona foreclosure or find yourself facing foreclosure there, it’s a good idea to become familiar with this state’s foreclosure procedures.
There are two types of foreclosure proceedings in Arizona – judicial foreclosures which are dealt with through the court system and non-judicial foreclosures which are settled out of court.
Judicial proceedings for an Arizona foreclosure involve the filing of a lawsuit against the borrower with the lender obtaining a court order to foreclose on the property. It can be a longer process than non-judicial foreclosure. Before handing out the court order, the court has to be satisfied that default has actually occurred… Once the court order is granted, a date is set for a public auction sale with the property being sold to the highest bidder.
Non-judicial proceedings for an Arizona foreclosure occur when the borrower has a trust deed on the property. The power-of-sale clause within the trust deed gives the lender authority to sell the property if the borrower defaults on the loan. This is done without having to go through the courts. So when a borrower gets behind in repayments and defaults on the loan, the lender will appoint a trustee to represent them and start foreclosure sale proceedings.
Firstly a Notice of Sale with the time, place and date of the foreclosure sale has to be recorded with the county clerk at the county where the property is situated. No later than five days from this notice being recorded, the trustee has to send (by certified mail) a copy of the notice of sale to all relevant parties to the trust deed. Then the notice has to be published in a newspaper in that county once a week for four weeks, the last one published no less than 10 days before the sale date.
The trustee then conducts the Arizona foreclosure sale. These are conducted from 9am to 5pm on any day besides Saturday or a public holiday. In order to bid on the property a $1,000 deposit is required. It’s then a matter of bidding on the property until the highest bid is reached. The winning bidder, hopefully you, has until 5pm on the following day to complete payment of the bid they made. However, the trustee may extend this time with a written agreement.
There is no “right of redemption” for the borrower in an Arizona foreclosure once foreclosure proceedings have begun.
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