This is the legal means by which your lender can use to repossess (take over) your home.

Most people do not have enough money to buy a house or property without financing it through a financial institution or bank. When the bank decides to give a person a loan, they take out a security interest on the property as an assurance that you will continue to make the payments for the property and fulfill the obligations of the loan. This security interest is called a deed of trust. When a person fails to make payments or defaults on the loan, the bank can start a legal process of foreclosure where the lender takes back the property to satisfy the loan.

Yes, there are two types of foreclosure in Arizona: judicial foreclosure and foreclosure by trustee sale. Judicial foreclosure requires the lender to file a lawsuit against the borrower in court. A foreclosure by trustee sale requires the appointed trustee to serve notice of the sale, and wait the statutory period of 90 days before selling the property. Trustee sales are the most commonly used method in Arizona because it is quicker and less costly, making it the preferred option with lenders.

After missing the first few months of payments, your lender will begin to send you notices of default letting you know that you are falling behind in your payments. After several months, usually three, the lender will make a demand that you make your payments.

If you continue to fail to pay your mortgage, the lender will start the foreclosure process. A notice of trustee sale will be sent to your residence. This notice will be recorded at your county recorder’s office, and will specify a date for your house to be auctioned. This date will be at least 90 days after the notice was sent.
If the lender sends this notice by certified mail, the process of forcing sale of your home can continue even if you refuse to pick up the certified letter.

On the date of the sale your house will be put up for auction and sold. Once the property is sold, you will need to leave the property.

If you have missed payments or know that you are going to miss payments, contact your lender. Many banks have programs to help individuals who are at risk of foreclosure. Ask your lender if there are any programs that may assist you.

The answer to this question depends on where you are in the foreclosure process. If you are current on your loan but know that you are going to fall behind, or have just recently started missing payments, you may want to speak with a housing counselor (see this related question ("How long does a foreclosure stay on your credit report?")).

If you are significantly behind on your payments or have received a notice of trustee sale, you may want to contact an attorney. If you would like to see if you qualify for legal aid, please follow this link. If you don’t have PowerPoint installed, you can click here for the PDF version.

To determine if a legal aid agency may be able to help you, please follow this link. If you don’t have PowerPoint installed, you can click here for the PDF version.

If you are looking for an attorney, you can visit one of these resources:
State Bar of Arizona
Maricopa County Lawyer Referral Program
Pima County Lawyer Referral Program
Legal LEARN—call 866-637-5341

A person has 90 days after receiving the notice of trustee sale, if the notice of sale has been properly recorded. Notice must be recorded in the county recorder’s office (ARS 33-807).

During the foreclosure process, a Notice of Trustee Sale will be sent to the property. This paper will provide the date and time of the trustee sale. After the Trustee's Sale, the home belongs to the lender or the person who bought it at the sale.

In 2009 the Protecting Tenants at Foreclosure Act was passed which gave tenants who had entered into a lease the ability to stay in the property for either the term of the lease or 90 days depending on the circumstances of both the tenancy and the foreclosure. If you are renting a house that is in the process of foreclosure, seek legal advice to determine your best option. This act was originally scheduled to expire in 2012 but was extended to December 31, 2014.

When a person files for bankruptcy, an automatic stay is temporarily placed on the foreclosure. An automatic stay is an injunction that stops all lawsuits and collection activity and includes foreclosure.

A foreclosure stays on your credit report for seven years.

No; once your house is sold, you are no longer the owner of the property and must remove your personal items from the residence and leave.

No; Arizona has no right to redemption. Once your property is sold, you are no longer the owner and will not be able to get the property back.

You may find alternatives by first contacting your lender or housing counselor, or contacting the mortgage foreclosure hotline at 877-448-1211.

The Arizona Foreclosure Prevention Task Force
Phone: 877-448-1211

Department of Housing and Urban Development (HUD)
Phone: 800-877-8339

The making homes affordable program is a federal program to help people stay in their homes through HAMP or HARP. To learn more about the program, visit their website.

HAMP helps homeowners who are struggling to keep their loans current or who are already behind on their mortgage payments. By providing participating mortgage loan servicers with financial incentives to modify existing first lien mortgages, the Treasury hopes to help homeowners avoid foreclosure regardless of who owns or guarantees the mortgage. Participation in HAMP is mandatory for servicers of loans owned or guaranteed by Fannie Mae or Freddie Mac (Government-Sponsored Enterprises, or GSEs). Participation in HAMP is voluntary for servicers of non-GSE loans.

Eligible homeowners who are current on their mortgages but have been unable to take advantage of lower interest rates because their homes have decreased in value may have the opportunity to refinance. Through a refinance under HARP, Fannie Mae and Freddie Mac will allow the refinancing of mortgage loans that they own or that they guaranteed in mortgage-backed securities. To see if your mortgage is eligible for a refinance, please click here.

If you bought your home using the first-time home buyers program, you do not need to pay back the money you received from the program unless you received a financial gain when your property was foreclosed.

On February 9, 2012, a settlement was reached between the 48 states, the federal government, and five of the largest residential mortgage loan servicers. This settlement included new rights for homeowners, including:

• Aid to homeowners needing loan modifications
• Aid to borrowers who are current
• Direct Payments to borrowers who lost their homes to foreclosure
• Payments to signing states
• Nationwide reforms to servicing standards

https://www.azag.gov/foreclosure/mortgage-settlements

The Arizona Department of Housing has programs for special needs and disabled individuals. These programs may be able to assist you in finding out more information if you are facing foreclosure. Click here for more information.

Veterans and service members who are currently having financial difficulties or are facing foreclosure may have options depending on their lenders. Contact your lender and the US Department of Veterans Affairs (VA) to discuss your options.

• VA-Guaranteed Home Loans and Non-VA Guaranteed Home Loans: call 877-827-3702, or visit the website.
• National Center for Homeless Veterans: call 877-424-3838, or visit the website.

No, Arizona is an anti-deficiency state which prevents lenders from recouping losses they may take when they foreclose on a home that is 2.5 acres or less, a single family dwelling, a single two-family dwelling, or if the deed of trust expressly prohibits recovery of any balance due. (ARS 33-814).

You do not need to pay a fee to receive help. Report demands for payment to the authorities.

The Arizona Foreclosure Prevention Task Force has created a workbook to help people avoid scams and become better prepared to handle their mortgage difficulties. Click here.

If you believe you are a victim of a foreclosure rescue scam, contact the Attorney General’s Office in Phoenix at 602-542-5763, in Tucson at 520-628-6504, or go to the Attorney General’s website.

Arizona Foreclosure Information Workbook

Arizona Attorney General’s Office

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