Arizona Foreclosure Process

In this guide, we’ll explain the process and timing for private mortgage lenders to complete a foreclosure in the state of Arizona.

Most of the information below was gathered from an interview we did with Randy Newman, President of Total Lender Solutions. They provide non-judicial foreclosure services in 5 states. Visit their profile on our Service Provider Directory to learn more about their services.

Arizona is a Non-Judicial Foreclosure State

Arizona is a non-judicial state, which means that the foreclosure is completed by an auction sale as opposed to a court proceeding. The lender must appoint a 3rd party, the trustee, to handle the foreclosure process. 

The foreclosure process in Arizona could take as little as 92 days from start to finish. It’s a 2 step process, starting off with a Notice of Sale and ending with an auction.

Foreclosures in Arizona can only be initiated due to a monetary default – failure to make payments. A lender cannot start a foreclosure due to the condition of the property or other breaches of contract per the loan documents. However, if there is a non-monetary violation, the lender can accelerate the loan to demand that the entire loan balance be paid in full, prior to starting the foreclosure process.

1 – Loan Acceleration Notice

If the default is non-monetary, and the lender wishes to accelerate the loan, the lender, or the lender’s attorney, must send a written notice to the borrower informing them that the loan has been accelerated, including the reason why, and provide a timeframe in which to remedy the issue or pay off the loan in full. The timeframe is determined by the lender. It could be a few days or a few weeks.

2 – Notice of Sale

When ready to begin the foreclosure process, the Lender will instruct the Trustee to send a Notice of Sale to the Borrower by certified mail, and the notice is simultaneously recorded with the county clerk, electronically. 

The Notice of Sale will set the time, date, and venue for the sale. The date of sale has to be a minimum of 91 days from the date that notice is recorded.  In order to prevent the sale of the property, the Borrower has until the day before the scheduled sale to make the loan current, or pay it off in full. At 5 pm on the day before the sale, the Borrower’s rights are terminated. 

3 – Foreclosure Auction Sale

Arizona foreclosure auctions can be held on any weekday, except holidays. The starting bid must be published on the Trustee’s website at least 24 hours prior to the sale.   As with most foreclosure auctions, the property will be sold to the highest bidder. 

The buyer does not have to bring all the money to the auction. Only a deposit of $10,000 is required to be paid toward the successful bid. The buyer then has 1 business day to pay the balance. Once that payment is received, the Trustee will immediately issue the deed to the buyer, which completes the foreclosure process.

If the winning bidder does not pay the remaining balance due before 5:00 PM on the next business day, the $10,000 deposit is forfeited, then the next successful bidder would be notified and offered the property. If there are no additional bidders, the property could go to the lender, if they want it. If not, a new sale date is set. 


How to Find Foreclosure Service Providers

If you’re a lender seeking help with a foreclosure, use our website as a resource. Our Service Provider Directory has a list of companies that offer foreclosure services throughout the United States.

  1. Click Services in the main menu to access our Service Provider directory
  2. Click Lender Services
  3. Look for the Filters section, click Foreclosure
  4. View each company’s profile to learn about their program
  5. Click the green CONTACT button and reach out to the company directly

The companies listed pay us a monthly advertising fee, so there is no cost to make contact through our website. Please remind each company that you found them on PrivateLenderLink.com.

Visit the Service Provider Directory

November 28, 2021