In Arizona the vast majority of real estate foreclosures are accomplished by the non-judicial trustee sale procedure. This has the advantage of being faster and cheaper than a traditional judicial foreclosure. But a Trustee appointed by a Lender to do a Trustee Sale must follow Arizona legal procedures. As of July 30, 2010, a lender must:
1.MAKE CONTACT. Thirty or more days before recording a notice of trustee sale, a Lender must contact a Borrower to discuss alternatives to foreclosure. The Lender must certify that it has either complied with this requirement or that the requirement does not apply in the specific case. This is a new requirement enacted via HB 2626 and applies to lenders holding first deeds of trust recorded between January 1, 2003 to December 31, 2008;
2. RECORD NOTICE. A Notice of Trustee’s sale must be recorded at least 91 days prior to the date set for the Trustee Sale;
3. MAIL TO BORROWER. A copy of the Notice of Trustee’s sale must be mailed to the borrower within 5 days of recording the same;
4. MAIL TO OTHERS WITH AN INTEREST. A copy of the Notice of Trustee’s sale must be mailed to all persons with an interest in the property as shown by the County Recorder’s Office records and also to any person who has recorded a Request for Notice.
5. POST NOTICE. A copy of the Notice of Trustee’s sale must be posted on the property twenty or more days prior to the sale.
6. PUBLISH NOTICE. A copy of the Notice of Trustee’s sale must be recorded in a newspaper of general circulation in the County where the real property is located. Publication of the notice must be done once per week for four consecutive weeks concluding ten or more days prior to the date and time set for the sale.
Failure to follow lawful procedure may invalidate a Trustee Sale.
Contact a real estate attorney in Phoenix for more information.