The Eviction Process for Home Foreclosure in Arizona
When a purchaser wishes to purchase property in Arizona, he frequently obtains a mortgage loan in order to pay for the property. He then repays the loan through monthly mortgage payments. If the now borrower fails to make the scheduled monthly payments, the loan may enter into a default status. Once the loan is in default, the lender may initiate foreclosure proceedings, which ultimately terminate with the eviction of the borrower from the property.
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Default
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A borrower is considered to be in default the day that a mortgage payment is late in some cases. The mortgage documents signed by the lender and borrower will determine exactly what constitutes default by the borrower. Some mortgages have a built-in grace period that allows the borrower a few extra days before she is considered in default. Legally, a lender may begin the foreclosure process on the day the borrower is considered in default; however, from a practical standpoint, most lenders attempt to work with borrowers to bring mortgages current before they consider foreclosure proceedings.
Judicial Vs. Nonjudicial Foreclosure
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In Arizona, your mortgage documents will determine whether the lender must use a judicial foreclosure or whether it may foreclose by nonjudicial means. If the mortgage was secured through a trust deed or if the mortgage documents specifically include a power-of-sale clause, then the lender does not have to obtain a court order to foreclose on the property. If a judicial foreclosure is required, then the lender will need to petition the court first for an order allowing the sale.
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Sale
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Once the lender has secured a judicial order to foreclose, or upon default by the borrower if a judicial order is not required, the lender must record in the Arizona county recorder's office where the property is located a notice of trustee's sale or notice of foreclosure sale. The notice must also be published in a newspaper of general circulation in the county for four consecutive weeks. The notice must be mailed to the borrower within five days of recording. The property may not be offered for sale until at least 90 days have passed from the recording date of the notice.
Eviction
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If the borrower fails to bring the loan current or make satisfactory arrangements with the lender by the date of the scheduled sale, then the property will be offered at auction. In Arizona, the highest bidder will have until 5:00 p.m. the following day to pay the balance due on the property. Once the balance due is paid, the title will be transferred to the winning bidder. At that point, the property belongs to the new owner, and anyone residing in the property may be evicted by the county sheriff -- by force, if necessary.
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