Stop Foreclosure in Arizona

Both court and out-of-court foreclosures occur in Arizona. The typical timeline for an out-of-court foreclosure is about four months.

Pre-foreclosure Period

Court foreclosures begin when the lender files for foreclosure in court and records a notice of the pending lawsuit (Lis Pendens). The court filing includes the debt and default amount. The borrower and any junior lien holders are notified either in person or by publication. If the borrower does not respond to the court action, the court can rule against them and set the amount owed to the lender. The county clerk then directs the county sheriff to conduct a sale of the property to recover the amount owed.

An out-of-court foreclosure sale may occur if a clause in the trust deed permits the lender to sell the property if a borrower defaults. To start the foreclosure, the trustee records a notice of sale, and the sale occurs at least three months after the notice is recorded. Until 5:00 p.m. the day before the sale, the borrower or any junior lien holders may stop the foreclosure by paying the default amount, fees, and costs.

Notice of Sale / Auction

For court foreclosures, the sheriff conducts the sheriff’s sale about 45 days after the county clerk directs the sale. It is a public auction, and anyone may bid. The bid price must be paid to the sheriff by 5:00 p.m. the day after the sheriff’s sale. After the sale, a certificate of sale is issued. If the property is not abandoned, the redemption period is six months from the sale date. If the borrower does not redeem, any secondary lenders may do so within a specified time. To redeem the property, the total amount owed plus fees and costs must be paid. If no one redeems the property, the sheriff transfers ownership to the winning bidder.

For out-of-court trustee sales, the notice of sale contains a property description, and the date, time and place of the sale. The notice is recorded, and the trustee mails the notice to all affected parties at least three months before the sale date. The notice appears in a local newspaper once a week for four weeks, with the last notice published no less than 10 days before the sale date. At least 20 days before the sale, the notice is posted on the property and the county courthouse. Starting the day before the sale and up to the sale, the trustee must provide the opening bid of the sale to anyone who asks or the sale may have to be postponed.

The trustee or the trustee’s agent conducts the sale at the property, the courthouse, or the trustee’s office.All bidders must provide a refundable $1,000 deposit in order to bid; the trustee keeps the deposit of the winning bidder. The sale can be postponed up to 90 days by announcement at the originally scheduled sale. The winning bidder has until 5:00 p.m. the next day to pay the full bid price, after which the trustee transfer ownership of the property within seven days. The proceeds of the sale are paid to the primary lender, then to any secondary lenders. There is no right of redemption for the borrower after an out-of-court foreclosure sale.

Stop foreclosure in Alaska.

Both in-court and out-of-court foreclosures are available in Alaska, but most foreclosures are done out of court. The typical out-of-court foreclosure takes 3-4 months.

Pre-foreclosure Period

In Alaska, most deeds of trust contain provisions enabling lenders to sell a property if a borrower defaults, thus giving lenders the power to foreclose out of court. For an out-of-court foreclosure to begin, the borrower must be in default for 30 days or more. A default notice is recorded and sent to all affected parties and must contain the deed of trust information, a description of the property, the debt owed, and the date, time, and location of the sale. This notice is also posted on the property. The borrower may resolve the default before the sale by paying the default amount plus applicable expenses.

For court foreclosures, the borrower does not need to be 30 days in default. A complaint and Lis Pendens (notice of pending lawsuit) are filed in court and delivered to the borrower. If the borrower does not respond within 20 days after the complaint is delivered, the court is able to rule the borrower in default and instruct that the property be sold.

Notice of Sale / Auction

For both types of foreclosures, the notice of sale must be posted in three public places at least 30 days before the sale, with one of them being the closest U.S. post office. The notice must also be published in a local newspaper once a week for four weeks.

For out-of-court foreclosures, the location of the sale varies. The lender’s attorney typically conducts the foreclosure sale. After the sale, the trustee provides the winning bidder with the deed transferring ownership. In most cases, all junior liens against the property are cleared from the title for the purchaser at an out-of-court auction. If the sale is postponed, the person conducting the sale must announce it publicly.

For court foreclosures the person overseeing the auction may postpone the auction by announcement for up to one week. If the sale is postponed more than 30 days, a new notice of sale is issued and advertised. After the sale, the winning bidder receives a certificate of sale and the sale must be confirmed. For court foreclosure sales, borrowers have a right of redemption for 12 months after the sale confirmation. The borrower must pay the amount of the sale price plus 8 percent interest and other applicable costs. If the property is not redeemed, the winning bidder at the sale can obtain full ownership of the property.