Arizona foreclosure law is fairly simple, though it can become a bit complex. The laws dealing with it, however, are written out very well. Both judicial and non-judicial foreclosures are allowed in Arizona. Though these two methods may be contradictory, they allow for a wider range of foreclosure availability. Arizona foreclosure law is, simply put, nearly identical to the laws of most other states.

Judicial Foreclosure

Arizona foreclosure law, when speaking of judicial foreclosure, involves filing a lawsuit to obtain a court order to foreclose. It is used when no power of sale is present in the deed of trust or the mortgage. Generally, after the court declares a foreclosure, the home will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

Arizona foreclosure law, when dealing with non-judicial foreclosure, is used when a power of sale clause exists in a deed of trust or mortgage. A “power of sale” clause is the clause in a deed of trust or mortgage, where the borrower fore-authorizes the sale of the property to pay off the balance on a loan in the event of their default. In deeds of trust or mortgages where a “power of sale” exists, the power given to the lender to sell the property may be executed by the lender or representative, generally referred to as the trustee.

Power of Sale Foreclosure Guidelines

If thee mortgage or deed of trust contains a power of sale and specifies the place, time, and terms of sale, then the specified procedure must be followed. Otherwise, the following non-judicial power of sale foreclosure procedure should be used to properly and legally follow Arizona foreclosure law.

Following Arizona foreclosure law, the trustee must record, in the office of the recorder of the county where the property is located, a record of sale. Within five days after the notice is recorded, the trustee must mail a copy of the notice of sale to each of the parties to the trust deed, except for him or herself. In addition, the notice must appear in a newspaper in the county where the property is located once a week for four consecutive weeks, with the last notice published no less than ten days before the date of sale.

Optionally, however, if it can be done without a breach of the peace, the trustee can post the notice at least twenty days prior to the date of sale, in some conspicuous place on the property to be sold. He or she can also post the notice at the courthouse or at a specified place at the business place of the trustee in the county which the property is located.