Foreclosure in Arizona: trustee's sale timeline and rights

Is foreclosure judicial or non-judicial in Arizona?

Both exist, and the lender picks. A deed of trust gives the trustee a power of sale, so the trustee can sell the home at a public auction after a default. The statute also lets the beneficiary (the lender) foreclose the deed of trust “in the manner provided by law for the foreclosure of mortgages” instead, which means a court case (A.R.S. § 33-807(A)). Once a court foreclosure is filed, a trustee’s sale cannot go forward unless that case is dismissed (§ 33-807(B)).

The trustee’s-sale path is the common one for home loans. The rest of this page follows it, then explains the court path.

Trustee’s sale timeline

The clock starts when the trustee records the notice of sale with the county recorder. The dates below come straight from the statutes.

Example. If a notice of sale is recorded on January 5, 2027, the earliest legal sale date is Tuesday, April 6, 2027 (91 days later). The sale must be held between 9:00 a.m. and 5:00 p.m. Mountain Standard Time on a day that is not a Saturday or legal holiday (§ 33-808(B)). The sale can be postponed, but each new date must be a fixed date within 90 calendar days of the announcement (§ 33-810(B)).

How do you stop or delay a trustee’s sale?

Reinstate the loan. Until the 5:00 p.m. deadline the homeowner can pay the overdue amount (without the part of the principal that was not yet due), plus the lender’s costs. The trustee’s fee is capped at the greater of $600 or one-half of one percent of the unpaid principal (§ 33-813(B)(4)). Ask the trustee for the exact figure.

Raise a defense in court, on time. The notice of sale must warn you in bold capital letters: if you believe there is a defense or objection, you must file an action and obtain a Rule 65 court order stopping the sale by 5:00 p.m. on the last business day before the sale, or you may have waived it (§ 33-808(C)(8)). Section 33-811(C) repeats the waiver rule. This is the strictest deadline in the process.

What happens at the sale?

The trustee sells at public auction for cash to the highest bidder. Anyone may bid, including the lender, but only the lender may make a credit bid instead of cash. Every other bidder must put up a $10,000 deposit before bidding (§ 33-810(A)). The deposit of a winning bidder who fails to pay is forfeited (§ 33-811(A)).

Is there a right of redemption?

After a trustee’s sale: no. The trustee’s deed conveys title “absolute without right of redemption” (§ 33-811(E)). Reinstatement before the sale is the only way to keep the home.

After a court foreclosure and sheriff’s sale: yes. The judgment debtor may redeem within six months after the sale. The period is 30 days if the court found in its judgment that the property was abandoned and not used mainly for farming or grazing (A.R.S. § 12-1282).

Can the lender sue for the balance (deficiency)?

It depends on the property. After a trustee’s sale, a deficiency action must be brought within 90 days of the sale (§ 33-814(A)). The court sets the deficiency at the amount owed minus the higher of the sale price or the home’s fair market value on the sale date. If no action is filed within 90 days, the sale proceeds are treated as full satisfaction (§ 33-814(D)).

Subsection (G) bars the action completely when the property is 2.5 acres or less and used only for one single-family or one two-family dwelling. Exceptions apply to deeds of trust made after December 31, 2014 for builder-owned property, homes never substantially completed, and homes never actually lived in (§ 33-814(H)). A court foreclosure on a purchase-money mortgage of such a home has the same type of protection (A.R.S. § 33-729).

What if you still live there after the sale?

After a trustee’s sale or foreclosure sale, a person who stays in the property after receiving a written demand for possession can be removed through a forcible detainer action in superior court (A.R.S. § 12-1173.01). Tenants with a lease or other right that ranks ahead of the foreclosed interest are not covered by that section.

Help for homeowners in default

HUD tells homeowners to speak with a HUD Approved Housing Counselor, who can give advice tailored to the situation. Search HUD’s counselor directory. Contact your loan servicer early about options. A lawyer can review deadlines such as the Rule 65 order. If you are thinking of buying at a trustee’s sale, read title insurance explained first: a trustee’s deed passes title subject to liens that rank ahead of the foreclosed deed of trust (§ 33-811(E)).