Judicial Foreclosure and Non-Judicial Foreclosure are both methods comprising Arizona Foreclosure laws. Under this legislation, a Judicial Foreclosure simply requires a lawsuit in order to obtain a court order to foreclose. This becomes necessary when there is not a power of sale written into the mortgage or the deed of trust.

A power of sale is a clause in the mortgage or deed of trust giving the lender permission to sell when a default occurs. When the power of sale is present, the courts are not part of the foreclosure process, permitting a Non-Judicial Foreclosure to go forward; this is the most common method of Arizona foreclosures.

A notice of Trustee Sale is filed in the county recorder’s office, and allows a 90 day period from the date of that notice, giving the property owner a chance to pay off the lien. All parties affected by the sale are notified by the Trustee, but during this time and the 90 day waiting period following the Notice of Trustee Sale being filed, the homeowner is still responsible for the property and all incurred debts.

It is only after all late payments have been made, including late fees, lender fees, and attorney fees, is the Notice of Trustee Sale voided and the property returns to the owner.

Should that not happen, the property is sold at auction and the owner loses all rights to the property. The proceeds from the highest auction bidder will pay off the primary lien. Any remaining balance goes to junior lien holders in a determined priority.

There are certain regulations governing how much the successful bidder at auction must put down at time of sale (usually $1,000), and a deadline set for payment in full. If this is not completed on time, the $1,000 is retained, and notice and deadline is given to the second highest bidder.

Serdar Bankaci
President/CEO
Default Research Inc
http://www.defaultresearch.com/state/azforeclosure

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