A foreclosure/trustee sale occurs when an original property owner cannot make the mortgage payments on a property, at which point the loan provider seizes the property, and it is sold. The process starts when a certain number of payments are missed at which point a Notice of Default is recorded at the County Recorder’s Office. The original property owner will receive notice of foreclosure and will still have time to correct the default. If the original property owner does not bring the loan current, a foreclosure sale is scheduled and the original property owner will receive a Notice of Sale. The foreclosure/trustee sale is usually in the form of an auction and the property is sold to the highest bidder, who must pay in cash.
Arizona real estate law allows both judicial and nonjudicial foreclosures. It simply depends upon whether there is a power of sale clause in the deed of trust or mortgage contracts. This process can be difficult and complex, especially for an individual who is not aware of the rights and responsibilities during a foreclosure proceeding.
If you are in the process of foreclosure or are looking to purchase a foreclosed property, call Skinner Law Group today at (480) 422-3440 to schedule your real estate consultation.