What are Arizona's foreclosure laws?

The laws that govern Arizona foreclosures are found in Article 33, Chapters 6, 6.1 of Arizona Revised Statutes. These laws state the following requirements

Type of Foreclosure Process

Arizona is a non-judicial foreclosure state. This means that the lender who is holding a loan that is in arrears has the right to notify the borrower without having to go to court that the note is in default. After the proper notifications made by certified mail, the lender may proceed to the foreclosure process. 

In some cases, a judicial foreclosure may be necessary if the original loan documents do not contain the appropriate clause that grants the lender the right to force a sale of the property.

Arizona Foreclosure Sale Requirements

In order for a lender to proceed to foreclosure sale, they must publicly advertise the foreclosure sale with very specific requirements. The foreclosure sale notification must be placed in a local newspaper one day per week for the four weeks leading up to the sale.  In addition to newspaper notifications, a notification must be posted at the property for twenty days prior to the sale.  Finally, a sale notification must be filed with the recorder of deeds in the municipality.

Rights of Redemption and Deficiency Judgments

Arizona foreclosure laws do not allow the homeowner any rights of redemption once a foreclosure sale has taken place. Deficiency judgments are complicated and require notification within ninety days of the sale.  Lenders who have sold a property at a public auction that is a single family residence (one unit or two) on less than 2.5 acres of land are not allowed to file a deficiency judgment. In the event the property was auctioned for less than fair market value, the lender is only allowed to sue for a deficiency judgment for the difference between the fair market value and the amount of the sale.

Legal Help is Needed

Homeowner's who are facing foreclosure proceedings in Arizona may have the ability to work with their lender to save their home.  Do not risk facing a potential deficiency judgment or losing your home because you failed to get proper legal advice.