Foreclosure is the legal process by which a mortgage-holder can obtain legal ownership of the real property pledged as collateral under the loan. The foreclosure process in Arizona can occur quickly for a mortgage company or other lender. A foreclosure can begin as soon as the homeowner misses a payment, but most lenders attempt to work out alternatives before pursuing a foreclosure.
If an alternative cannot be worked out between the lender and the homeowner, the lender may begin foreclosure proceedings. Most Arizona homeowners have a trust deed, so the timeline for the foreclosure is quick because it does not have to go to court.
The lender must appoint its trustee, the person or entity that has the legal right to sell the home in a trustee sale, to handle the appropriate paperwork. The attorneys at Windtberg & Zdancewicz, PLC, can serve as your trustee. The trustee must record a “Notice of Trustee’s Sale” in the county recorder’s office. The home may not be sold until after 90 days from the recording date of the notice. This notice must also be published a minimum of once a week for four consecutive weeks in a “newspaper of general circulation” in the applicable county. The trustee will mail a notice within five days of the recorded notice of trustee sale to the home owner and other parties affected by the foreclosure.
Assuming that the home owner has not reinstated the loan, the trustee will conduct the sale at a previously disclosed location. Every bidder is required to provide a $1,000 deposit to bid on the home. At such time, the home is sold to the highest bidder, which may include the mortgage company. If the bidder successfully wins, he or she has until 5:00 p.m. of the following day (assuming that it is not Saturday or a legal holiday) to pay the remaining balance in cash or other acceptable forms of payment as determined by the trustee.
If the highest bidder fails to pay his bid amount, his deposit is forfeited and he is liable to any person who suffers loss or expenses as a result, including attorney fees. If the highest bidder forfeits his bid, the second highest bidder is given until 5:00 p.m. of the next day.
Proceeds from the sale are used to pay off the trust deed lien against the home. If any proceeds remain, payment is made to junior lien holders in order of priority. In the event that any remaining balance is left over from the sale, the trustee will remit the balance to the ex-home owner.
If you would like to learn more about the Arizona foreclosure process or you need assistance conducting a foreclosure, contact Windtberg & Zdancewicz, PLCtoday.
The attorneys at, provide clients with experienced legal representation.Our attorneys handle cases from pre-litigation negotiations through litigation, obtaining and enforcing judgments to collect what our clients are owed. If you need assistance, or are interested in learning more, please contact us at (480) 584-5660.