Your rights during a foreclosure in Arizona
Is foreclosure on the horizon for you? This a frightening realization for most, but it doesn’t mean you’re bound to lose your home. The foreclosure process is relatively complex, and thus many homeowners don’t fully understand the steps involved, how much time they have left in their home, or their rights. In this post, we explain the foreclosure process and the options that residents of Arizona have during it.
What is foreclosure?
Before we begin, it’s a good idea to explain just what foreclosure actually means. Foreclosure refers to the process of a lender or mortgage holder reclaiming possession of a property after the borrower (you) has missed payment(s). Foreclosures in Arizona are a little different in that the majority of them tend to be non-judicial instead of the judicial foreclosures that other states have. What this means is that in Arizona, no intervention by the courts is required to foreclose on a home, whereas in other states the lender must file a lawsuit in state court to achieve the same outcome.
Your rights
As soon as you miss a mortgage payment you enter default. Technically, your lender could initiate the foreclosure process on the first day that your mortgage payment is late, but this essentially never happens. The reason? Your lender wants money from you, they don’t want your house and the accompanying burden of having to sell it. However, the amount of payments that a lender will let you miss is extremely variable. Some people are able to only get away with a month of missed payments and others as much as a year’s worth.
At some point, the lender will file a Notice of Trustee’s Sale and officially begin the foreclosure process. They may also issue a Notice of Default, but this is not required in Arizona. This means that you have 90 days to cure the default until the Trustee Sale is held.
In short, instead of gambling with the number of payments you can miss, it’s best to cure the default as soon as possible by paying back all amounts due, including penalties, interest, and any other fees allowed by law or the mortgage itself. This is basically your last chance to get back on level footing. Since most foreclosures in Arizona are non-judicial, there is no redemption period where you can make your loan current at any time prior to the sale (or in some states even beyond the sale).
How much time left?
Assuming you were unable to cure the default and the Trustee Sale was initiated, your rights begin to dwindle. At this point, it is best to arrange a move out as soon as possible instead of delaying the inevitable. You risk being forcibly removed from your home when the new owner of the home decides that they want you out.
Avoid the mess.
Unlike judicial foreclosure states, your rights in Arizona during foreclosure are fairly limited, mainly due to the lack of a redemption period. Don’t let your situation get this bad. If you are struggling to, or can no longer afford to make mortgage payments on your home, contact We Buy Ugly Houses Phoenix. We buy homes regardless of condition, make cash offers, and help desperate homeowners facing foreclosure all over the country. Get your free quote from America’s #1 home buyer today.
COVID-19 Exceptions
Because of the coronavirus (COVID-19) crisis, as of March 27, 2020, banks and mortgage servicers, in conjunction with the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA), have agreed to suspend evictions and foreclosures in Arizona for at least 60 days with the potential to extend that period for as long as state and local emergency declarations are in place. Also, the federal government has imposed a foreclosure moratorium for federally backed mortgage loans for 60 days, starting March 18, 2020. – Nolo.com
*Updated June 2020. Originally posted January 2017.
