If you are facing foreclosure of your home in Arizona, you should familiarize yourself with some of the key features of Arizona foreclosure law, such as Arizona's rules regarding notice of the foreclosure, Arizona's deadline to reinstate the mortgage before the sale, Arizona's anti-deficiency law, and more.
Below you’ll find a summary of some of the key features of Arizona foreclosure law along with citations to the statutes so you can read the law yourself.
The citations to Arizona’s foreclosure statutes are:
We’ve summarized important parts of Arizona’s foreclosure laws below. You can find more detailed articles on various aspects of Arizona foreclosure law in Nolo’s Arizona Foreclosure Law Center.
In Arizona, foreclosures can be nonjudicial, which means the foreclosure takes place outside of court, or judicial, which means the lender files a lawsuit in state court in order to foreclose the house. (Since most foreclosures in Arizona are nonjudicial, this article focuses on that process.)
In Arizona, the trustee (the third-party that administers nonjudicial foreclosures) starts the foreclosure process by the recording of a notice of sale in the county recorder’s office. The sale date must be at least ninety-one days after the notice of sale's recording date. Ariz. Rev. Stat. § 33-808(C)(1).
The trustee must then mail a copy of the notice of sale by registered or certified mail to the borrower within five days after the recording date. Ariz. Rev. Stat. § 33-809(C). A copy of the notice of sale must be sent by registered or certified mail within 30 days of recording to:
The notice of sale must also be:
“Reinstating” is when you catch up on the missed payments (plus fees and costs) in order to stop a foreclosure. (Learn more about reinstatement to avoid foreclosure.)
In Arizona, you can reinstate up to 5:00 p.m. on the last day, other than a Saturday or legal holiday, before the sale date. Ariz. Rev. Stat. § 33-813.
In some states, you can redeem (repurchase) your home within a certain period of time after the foreclosure. Arizona law does not permit foreclosed homeowners to redeem the home after a nonjudicial foreclosure. (Ariz. Rev. Stat. Ann. § 33-811(E)). (To get details on redemption after a foreclosure in Arizona, see Nolo’s article If I lose my home to foreclosure in Arizona, can I get it back?)
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a “deficiency.” Some states allow the lender to seek a personal judgment (called a “deficiency judgment”) against the borrower for this amount, while other states prohibit deficiency judgments with what are called anti-deficiency laws.
In Arizona, the lender can generally obtain a deficiency judgment by filing a separate lawsuit within 90 days following a nonjudicial foreclosure sale. However, Arizona also has an anti-deficiency law that states the lender cannot get a deficiency judgment after a nonjudicial foreclosure if the property is:
After an Arizona foreclosure sale, the purchaser may initiate an eviction (after making a demand for possession) by filing a lawsuit against you.