Arizona Foreclosure Laws

Arizona foreclosure laws follow a title theory operation and a non-judicial remedy for Arizona foreclosed homes. This means two things: the title of a particular property is in trust until one fully pays for the loan, and the implementation of the foreclosure does not have to go through court action. However, the lender will have to include a power of sale clause in their legal documents in order to take advantage of this method that can make foreclosure easier.

In order to use the power of sale provision, the lender must publish a notice of sale for four weeks consecutive (at least once a week would do). Twenty days before the proposed sale, the notice should be posted in property that will be foreclosed. The notice, as stated by Arizona foreclosure laws, should include the following: the place, the time, and the date of the sale; the address of the trust property, as well as legal descriptions; the original balance of the lender; and the names of the lender and the trustee (the lender's representative). The notice should include the trustee's contact number as qualifications

As with any state following the non-judicial method, Arizona foreclosure laws require foreclosures to provide to court if the power of sale is not included in any of the documents provided by the lender. In this case, the court issues the decision regarding the foreclosure. These documents include the trust deed and the security agreement (when the transaction is a commercial one).

Without any postponements, the foreclosure can take place (as stated in the Arizona foreclosure laws) after 120 days of the said filing. This is, of course, possible only when the lender does not seek for the postponement of the deed or does not file for bankruptcy. The Arizona foreclosure laws do not provide statutory rights for lenders.