How Foreclosure Works in Arizona

Both. Most Arizona home loans are deeds of trust, and the trustee has a power of sale that lets the property be sold outside of court after a default (a "trustee's sale"), even if the deed of trust does not say so. The lender may instead choose to foreclose in court the same way as a mortgage. Once a court foreclosure action has been filed, a trustee's sale cannot be held unless that action is dismissed.

For a trustee's sale, the trustee must record a notice of sale with the county recorder; within five business days after recording, mail a copy by certified or registered mail to the parties to the deed of trust; within 30 days after recording, mail a copy to others with a recorded interest or who recorded a request for notice (and, for single-family homes, to the property address); post the notice on the property and at a superior court building at least 20 days before the sale; and publish it once a week for four consecutive weeks in a local newspaper, with the last publication at least 10 days before the sale. The notice must warn, in bold capital letters, that anyone with a defense or objection must get a court order stopping the sale by 5:00 p.m. on the last business day before the sale, or the defenses may be waived.

A trustee's sale cannot be held before the 91st day after the notice of sale is recorded. The sale must be on a day other than a Saturday or legal holiday, between 9:00 a.m. and 5:00 p.m.

Yes. The borrower (or a junior lienholder) may reinstate the deed of trust before 5:00 p.m. on the last business day before the sale by paying the amount then due (not counting principal that would not be due without the default), curing other defaults, and paying allowed costs, attorney fees and a capped trustee's fee. After reinstatement, the loan continues as if no default had occurred. On written request after the notice of sale is recorded, the trustee must give the exact reinstatement amount within five business days.