Arizona is a Deed of Trust state. This means that the Arizona foreclosure process is through a surrender of property deed when foreclosure is needed. The law in Arizona allows for a judicial foreclosures, but also a lender and borrower can agree for a non-judicial sale. When a borrower is in default of payments, a lender can force a sale in order to recover funds lent to the defaulting borrower.
A Deed of Trust means that the mortgage is a lien against the property until the amount of any mortgage is completely paid. The law in Arizona allows for a property to be foreclosed through a judicial process. However, in practice, most foreclosures occur through a non-judicial process. A Power of Sale provision in a Trust Deed allows for the alternative form of foreclosure.
When there is a pending default, the lender first files a court document known as a Lis Pendens, or Notice of Default. The ending of this foreclosure process might be for the borrower to take care of any amount owing. This put the borrower back into compliance with original loan provisions. There is a grace period allowed by the law’s mandates.
The borrower can also deal with potential foreclosure by selling the property to another buyer. With the proceeds from the sale, the original borrower can cure the default and perhaps even make enough to allow the borrower for a new start in other property. This solution doesn’t impact the borrower’s credit report, since the defaulted amounts are cured through the property sale.
The third way in which the grade period ends is for the loan holder to take possession of the subject home according to a Power of Sale agreement. The property is then owned by the lender and is known as REO property. The lender has the right to sell the property, usually through an auction sale.
There are numerous steps that must occur prior to the actual sale. The lender has to publish the notice of sale in the local newspaper for at least four weeks prior to the date of sale. The newspaper has to be one that is commonly read in the area. The date of sale minus twenty days means that there must be a notice of sale posted at the location itself. The County Recorder must have a notice of sale filed there also within the 20 days preceding a sale.
In order to be a valid notice, the published information must include the date, time and location of a final sale. The street address, as well as the tax lot number and the legal description of property due for sale. Information on the Trustee and contact information and the name of the sale beneficiaries must be included. The final element required in the notice is the original principal balance.
The usual time requirement to accomplish an Arizona foreclosure is four months, although a rushed process can happen in as little as 90 days. The completion of the sale means that a new buyer owns the house. Some lenders and original buyers elect to shorten the process by going to court and agreeing to a judicial foreclosure.
We all know that we dread thought of foreclosure and it happening to your home. To get the best information that could help you in az foreclosures, you need to look online. Many Arizona foreclosure sites can help you.