The Arizona Foreclosure Process — Step by Step
How a non-judicial foreclosure actually unfolds in Arizona, from first missed payment to trustee's sale.
Arizona is a non-judicial foreclosure state
Most Arizona home loans (99%+) include a "deed of trust" — not a mortgage in the technical sense. That means when you fall behind, the lender doesn't have to sue you in court to foreclose. Instead, they use a faster, out-of-court process called a trustee's sale.
This is governed by Arizona Revised Statutes Title 33, Chapter 6.1 (ARS §33-801 through §33-821).
The full timeline
1. First missed payment (Day 1)
Late fees start. Your lender notes the miss, but no legal action is taken yet. Most lenders will work with you if you call now.
2. 16–30 days late
Late fees post. Lender calls and letters begin. Ignoring these is the worst move — engagement keeps options open.
3. 45 days late — federally-required loss mitigation
Under CFPB rules (12 CFR §1024.39), your lender must contact you about foreclosure alternatives by day 45. This is when short sale, forbearance, or modification conversations should begin.
4. 90–120 days late — referral to foreclosure
After roughly 3 missed payments, the lender refers the loan to their foreclosure department or a trustee. A formal Notice of Default may be sent, but in Arizona this is not always required before the next step.
5. Notice of Trustee's Sale recorded (ARS §33-808)
The trustee records a Notice of Trustee's Sale in the county recorder's office. At least 90 days must pass between this recording and the auction. A copy must be mailed to the borrower, posted on the property, and published in a local newspaper for 4 consecutive weeks.
This is your critical window. Most successful short sales happen during these 90 days.
6. Trustee's Sale (auction)
The home is auctioned — typically on the courthouse steps or online — to the highest bidder. If no bidder meets the lender's reserve, the property becomes REO (lender-owned).
7. After the auction
Arizona does not allow a statutory right of redemption for non-judicial foreclosures. Once the sale is complete, the new owner can begin eviction immediately.
What you can do at each stage
| Stage | Best Options |
|---|---|
| Current but worried | Sell with equity, loan modification, forbearance planning |
| 1–90 days late | Reinstate, modify, forbear, or begin short sale |
| Notice of Trustee's Sale recorded | Short sale (most common), deed in lieu, bankruptcy to halt sale |
| Week of auction | Only postponement via active short sale or bankruptcy filing |
| After auction | Negotiate cash-for-keys during eviction |
Bottom line
Every week matters. The earlier you start, the more leverage you have with the lender. If you've already received a Notice of Trustee's Sale, don't wait — call today.