AREA REAL ESTATE AND RESOURCES

JUDICIAL FORECLOSURE in Arizona is rarely used, and only in the absence of a power of sale clause in the loan documents or when the lender is seeking a court order for a deficiency judgment. The lender must sure the borrower to obtain a decree of foreclosure and order of sale.
NON-JUDICIAL FORECLOSURE requires the lender's trustee to record a notice of sale in the county in which the property is located. And within five days of recordation, mail by certified mail a copy of the notice to all parties to the deed of trust. The notice must also be published weekly in a newspaper of general circulation in the county for four consecutive weeks, the last publication not less than ten days prior to the date of sale.
THE NOTICE SHALL ALSO BE POSTED, at least twenty days prior to the sale at the property to be sold, without a breach of the peace, and the county courthouse.
THE SALE shall be conducted by the trustee for cash to the highest bidder. The successful bidder must make payment to the trustee's satisfaction by 5:00 PM on the day following the sale unless that day is a Saturday or a legal holiday. If the high bidder fails to make payment, the sale may be continued, or postponed to another time or place by public declaration, or the trustee, at his discretion may immediately offer the property to the second highest bidder. The successful bidder receives a trustee's deed on completion of the sale. the sale is deemed complete upon payment of the amount bid. The lender usually bids in the amount of the balance due plus costs. If one one else bids, the property reverts to the lender.
DEFICIENCY JUDGMENTS are not allowed if the foreclosed property consisted of 2.5 acres or less, and was a single family or two family dwelling. Deficiency judgments may be sought on other types of property and suit must be filed within 90 days of the date of sale.

SALE OF TRUST PROPERTY; POWER OF TRUSTEE; FORECLOSURE OF TRUST DEED STATES:
A. By virtue of his position, a power of sale is conferred upon the trustee of a trust deed under which the trust property may be sold, in the manner provided in this chapter, after a breach or default in performance of the contract or contracts, for which the trust property is conveyed as security, or a breach or default of the trust deed. At the option of the beneficiary, a trust deed may be foreclosed in the manner provided by law for the foreclosure of mortgages on real property in which even chapter 6 of this title governs the proceedings. The beneficiary or trustee shall constitute the proper and complete party plaintiff in any action to foreclose a deed of trust. The power of sale may be exercised by the trustee without express provision therefore in the the trust deed.
B. The trustee or beneficiary may file and maintain an action to foreclose a deed o trust at any time before the trust property has been sold under the power of sale. A sale of trust property under the power of sale shall not be held after an action to foreclose the deed of trust has been filed unless the foreclosure action has been dismissed.
C. The trustee or beneficiary may file an action for the appointment of a receiver according to sections 12-1241 and 33-702. The right to appointment of a receiver shall be independent of and may precede the exercise of any other right or remedy.
D. The power of sale of trust property conferred upon the trustee shall not be exercised before the ninety-first day after the date of the recording of the notice of sale. The sale shall not be set for a Saturday or a legal holiday. The trustee may schedule more than one sale for the same date, time and place.
E. The trustee need only be joined as a party in legal actions pertaining to a breach of the trustee's obligation under this chapter or under the deed of trust. Any order of the court entered against the beneficiary is binding upon the trustee with respect to any actions that the trustee is authorized to take by the trust deed or by this chapter. If the trustee is joined as a party in any other action, the trustee is entitled to be immediately dismissed and to recover costs and reasonable attorney fees from the person joining the trustee.

FORECLOSURE

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FROM THE ATTORNEY GENERAL'S OFFICE REGARDING FORECLOSURE:

ARTICLE 33-807 STATES: