Although the lender can usually start the foreclosure process as soon as a homeowner is late with a single mortgage payment, most lenders will make numerous demands and try to work out some other solution before initiating the formal foreclosure process. While its impossible to predict how long a lender might take before taking this step, it is not unusual – particularly during these trying economic times – to see homeowners 3-6 months past due before a lender begins foreclosure proceedings. Significantly, as long as the homeowner is past due it is up to the lender to decide when it is going to proceed, and in some instances the lender may decide to wait many months or even years before foreclosing.

Most homeowners in Arizona have a deed of trust as opposed to a traditional mortgage, which allows the lender to foreclose without going to court. Arizona does, however, still have a mechanism whereby a foreclosure may be pursued judicially in the rare instance there is not a deed of trust or if the lender simply chooses to proceed judicially in lieu of foreclosing on the deed of trust. In some cases the lender may realize a financial advantage by going to court, so homeowners who are served with a lawsuit instead of a Notice of Trustee’s Sale should consult with an attorney as soon as possible.

To effect a non-judicial foreclosure in Arizona, the lender must appoint a Trustee, who is the person or entity that is legally entitled to sell the property in a Trustee’s Sale. The Trustee’s first action is to record a Notice of Trustee’s Sale in the county recorder’s office, which is a legal notice identifying the precise time and date, as well as the location, when the home will be sold. Arizona law requires that the Notice of Trustee’s Sale must be recorded at least 90 days before the sale date. The Notice of Trustee’s Sale must also be published in an appropriate newspaper and copies must be delivered to the homeowner and other interested parties.

In the absence of express agreement, Arizona law provides protection for borrowers against potential liability stemming from the sale of a property at less than market value in a foreclosure sale. The borrower, however, must act quickly to protect his or her rights. If the property sells for less than the amount owed to the lender, the borrower is entitled to ask a court to determine the property’s fair market value. In the event the court agrees that the far market value is higher than the sales price the buyer gets credit for the higher amount. This not only protects the borrower from an unfairly low price, but encourages lenders to make a credit bid for an amount near fair market value.

There is an even more favorable statute protecting borrowers against deficiency judgments involving single or dual-family dwellings on 2 1/2 acres or less where the loan is “purchase money,” meaning it was used to pay the purchase price of the property. Typically, loans used to refinance purchase money loans are also considered purchase money loans, although the use of some of the proceeds to pay other debts, obtain cash out, or for other uses may expose the borrower to recourse liability.

Significantly, even if the loan is not a purchase money loan, the lender’s election to utilize non-judicial foreclosure on the deed of trust renders it non-recourse by operation of law. The lender may, however, instead seek judicial foreclosure, which is more expensive and time-consuming, but preserves the ability of the lender to obtain a deficiency judgment. This anti-deficiency statute also allows a lender to seek a deficiency judgment against the borrower in the event of waste. Because interpretation of the Arizona anti-deficiency statutes and related real estate laws can be very complicated, borrowers and lenders are advised to seek the assistance of an experienced real estate attorney with any questions or concerns they may have.

The circumstances that put a home into foreclosure are unfortunate and unpredictable, and in today’s economy, homeowners are losing their homes at an alarming rate. As unsettling this economic reality may be, bank owned homes can be a real opportunity for buyers. Prices have never been lower, and if you’re a first time home buyer or a real estate investor, this presents an unprecedented buying opportunity. The market is now flooded with vacant homes that are being sold below their appraised value, which makes finding a foreclosure property a good investment.

If you are thinking about finding a foreclosure property in Arizona to buy, you’re in the right place! There are thousands of websites online that offer foreclosure listings. Some of them are free; others aren’t. Foreclosure listings in the State of Arizona are public information, so you should focus on finding free foreclosure listings. In fact, a simple Google search using the terms ”free foreclosure listings Arizona” should bring up enough results to keep you busy for days!

Now that you have all of these results, how do you know which site is the best? Here are a few things to keep in mind when you’re trying to find a foreclosure property: First, make sure the site is really free. You should be able to search all available foreclosure properties without having to give up your credit card information. If a credit card is required to do a ”free” search, go find another site!

Next, you should test the site’s search capabilities. Some sites will provide residential foreclosure listings only; some will provide commercial property listings; others will provide both. What is important is that they have the listings you’re interested in and that you’re able to refine your search to narrow down the results.Being able to define your unique criteria (location, price range, size, condition, age, etc.) is crucial when there are so many listings available.

Finally, you should find out who owns the website. It would be in your best interest to use a site that is run by trusted real estate broker or agent with experience buying and selling foreclosures. An experienced agent can help you identify the right foreclosure properties in Arizona, provide property comparables and valuations, and make sure the process of searching goes as smoothly as possible.