Summary: Arizona foreclosures can be judicial or non-judicial. A judicial foreclosure is one that is pursued through the court system. A non-judicial foreclosure can be pursued if there is a Power of Sale clause in the mortgage or deed of trust. The typical foreclosure in the State of Arizona takes about 3 months. There is no buyer right of redemption and deficiency judgments vary.

In the State of Arizona, a foreclosure can be judicial or non-judicial, depending on the language contained in the security instrument, being a deed of trust or a mortgage. Lenders will usually proceed with the non-judicial process, which can take as little as 90 days, if the security instrument contains a “Power of Sale” clause. In some cases, a lender can pursue a deficiency judgment against the borrower for an amount due after the sale of the property in public auction.

The judicial foreclosure process in Arizona begins when the lender files a suit in the county where the property is located against the borrower, usually because the borrower has defaulted on the agreement and is behind in their mortgage payments. The lender will seek a court order to foreclose. After this order has been entered in the court, the home is then put up for public auction. A borrower has no right of redemption once the court orders a foreclosure in the State of Arizona.

In the non-judicial foreclosure process, the lender invokes the Power of Sale clause in the deed of trust or mortgage that pre-authorizes them to sell the property if the borrower defaults on their mortgage payments. The lender must adhere to Power of Sale guidelines when going through the process of a non-judicial foreclosure.

In some cases, the specifics of the sale are spelled out in the Power of Sale clause. Generally, the lender has to record the Notice of Sale with the county and must mail a certified copy of the Notice to the borrower at their last known address, as well as anyone else who has a lien on the property. The notice must be mailed through certified mail. The lender must also post the notice in the county newspaper for four weeks prior to the date of the sale and the last notice must be published at least 10 days before the sale of the foreclosure.

In addition to the above, the lender can also post the notice of sale on the property, but must not breach the peace. This is often done if the property has been abandoned. The notice of sale is posted 20 days prior to the sale, usually on the front door of the property. Sales are conducted at the courthouse by a trustee of the lender and the highest bidder will get the property. The bidder gets the deed to the property and the sale is concluded. The borrower has no right of redemption.

Lenders can only pursue a deficiency judgment against a borrower that has property less than 2.5 acres or is a single or two family dwelling. Other types of property, however, are subjected to a deficiency judgment which is based upon the fair market value of the home. Deficiency judgments must be sought through the court no more than 90 days after the sale.

If you are facing foreclosure in Arizona, you should seek foreclosure help as soon as possible as there are many ways to stop foreclosure and keep your credit record from reflecting this black mark. In some cases, you can save your home from foreclosure through the use of loan modification.

The first step that you should take when facing foreclosure in the State of Arizona is to get a free foreclosure consultation from loss mitigation specialists. Loss mitigation firms will generally offer this free consultation that will take a look at your mortgage, your property, your current situation and help you find a way to stop foreclosure. In some cases, you can save your home, such as with loan modification. You may also have the option of being able to walk away from the bad debt unscathed by embarking on a short sale that loss mitigation companies can provide.

The short sale is when a buyer purchases your property before the foreclosure. This can stop foreclosure and allow you to walk away from the debt without having to worry about ruining your credit. While your credit does take a hit when you are behind on mortgage payments, it is not as bad as when you have a foreclosure placed on your credit report. This can follow you for many years as it generally stays on the record for 7 years. Loss mitigation experts can help you prevent foreclosure by working out an arrangement with the lender for a short sale. This allows you to walk away, free and clear and get a new start without the mark of foreclosure.

You can also look at other options when you are seeking to prevent foreclosure. This includes getting a bad credit loan. A bad credit loan is often offered at a higher interest rate that may even be higher than what you are currently paying and generally only postpones the inevitable foreclosure from happening. You may also think that government assistance can help, although this is only available to a small portion of people in foreclosure. In most cases, a borrower is better off facing the truth about their situation and seeking foreclosure help as soon as they realize that they are having an increasingly difficult time paying their mortgage payments. The sooner that you act when facing a foreclosure, the more options there will be to stop foreclosure from occurring.

If you fear you may be facing foreclosure in the State of Arizona, you should seek foreclosure help from loss mitigation firms. Go to www.1stforeclosureprevention.com to understand your options when it comes to foreclosure prevention.