What is the Foreclosure Process with Fountain Hills Arizona Real Estate?

What is the foreclosure process with Fountain Hills Arizona real estate and how long does it take?

Unlike some states the foreclosure process is not done through the courts. Arizona primarily is a title theory state which means the property title remains in a trust account until full payment is made on the loan. This is usually held by a third party such as an attorney or title company that represents the lender ( beneficiary). The document that secures the title is usually called a deed of trust or also referred as a Trust deed, not a mortgage as in some other states.

Foreclosure in Arizona is a non-judicial remedy and the procedure is not done through the courts which makes it much quicker. When a homeowner defaults the lender will instruct the trustee to give notice of trustee sale.

So what are the steps involved in a non-judicial foreclosure:

1) Homeowner Defaults: I f you default in your payments it can take several months to initiate foreclosure, so don’t fear if you miss one payment, you will have time to make it up. Banks really don’t want to own your home but they do like to get paid on time.

2) Filing  a Notice of Trustee Sale : There are rules to be followed as far as how a notice of trustee sale is served and where it will be posted. It will be advertised in the newspaper, posted on the property, and a certified letter will be  mailed to the property address. Information regarding  the auction date and place of sale will be included in the notice. The time of the sale is 90 days after the notice is recorded.

In a non-judicial foreclosure such as in Arizona there is no redemption period. A home owner can play catch up and make their loan current at any time prior to the actual sale and stop the process but once the home is sold at Trustee Sale, it’s a done deal!

3) The Trustee Sale: The home goes up for bid at the location specified which could be the courthouse steps or an attorney’s office.  If there aren’t any bids or the offers are too low, the bank takes the home back. Usually within a few months the home will be  listed on the Multiple Listing Service ( MLS) as a REO (Bank Owned) property, commonly known as a foreclosure.

Anyone can bid on these homes at a trustee sale, but this is best left to the experienced investor. There could be liens on the properties that you need to pay off and unless you know how to research for that information you could get stuck  paying a lot more money than you anticipated. Plus, more than likely you can’t get into these homes prior to auction so you never know what repairs are needed.

On the other hand buying a banked owned properties all the liens have been cleared before they are put up for sale on the open market. You will still be responsible for any repairs since they are sold “as is” but the asking price usually reflects the condition of the property.

Do you have questions about Fountain Hills real estate? I would love to talk with you! For a quick response, you can contact me at 480 888 6708 or email me regarding  Fountain Hills neighborhoods, price trends, short sales, etc. I’ll get back to you ASAP!

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