Arizona is a non-judicial foreclosure state. After the federal 120-day waiting period, the lender records a Notice of Trustee’s Sale (NTS) with the Maricopa County Recorder. Arizona law (ARS § 33-807) requires at least 91 days from NTS recording before the trustee’s sale. No post-sale redemption period for non-judicial sales. Arizona’s anti-deficiency statute (ARS § 33-814(G)) generally prohibits the lender from pursuing a deficiency judgment after a non-judicial trustee’s sale on a qualifying residential property — protecting Phoenix homeowners from the post-foreclosure debt that Texas and other states allow lenders to pursue.
Arizona’s non-judicial foreclosure process is moderately fast: slower than Texas (41 days from initiation) but dramatically faster than Pennsylvania or Ohio (judicial, 12-24 months). The fixed 91-day NTS period gives Phoenix homeowners a defined window to act. And Arizona’s anti-deficiency protection fundamentally changes the calculus for underwater homeowners.
Arizona Non-Judicial Trustee’s Sale: How It Works
Arizona uses a deed of trust with power of sale under ARS Title 33, Chapter 6.1.
Step 1: Federal 120-day pre-filing waiting period. Federal law requires servicers to wait 120 days from the first missed payment before initiating formal foreclosure. This is the critical window for loss mitigation.
Step 2: Record Notice of Trustee’s Sale (NTS). After the 120-day federal period, the lender’s trustee records the NTS with the Maricopa County Recorder (ARS § 33-807). The NTS must be:
- Recorded at least 91 days before the scheduled sale date
- Mailed to the borrower, junior lienholders, and others within 5 business days of recording (ARS § 33-809)
- Published in a newspaper of general circulation once a week for 4 consecutive weeks
- Posted on the property
Step 3: 91-day waiting period. Arizona mandates a minimum 91 days from the NTS recording date before the trustee’s sale can be held (ARS § 33-807(B)). During this period, the borrower can cure the default (reinstatement) by paying all arrears plus costs up to 5 days before the sale date.
Step 4: Trustee’s sale. The sale is held at the time and location specified in the NTS. In Maricopa County, sales are typically held at the courthouse steps or at designated auction venues. The property sells to the highest bidder.
Step 5: No post-sale redemption. Arizona provides no right of redemption after a non-judicial trustee’s sale. Compare to Arizona’s judicial foreclosure, which carries a 6-month redemption period — this is why lenders prefer the non-judicial process. Once the trustee’s deed is recorded, ownership transfers permanently.
Total timeline from first missed payment: 120 days (federal) + 91 days (NTS) = approximately 211 days minimum (7+ months) before the trustee’s sale. With NTS publication requirements and scheduling, the realistic total is 7.5 to 9 months from the first missed payment.
Arizona’s Anti-Deficiency Statute: ARS § 33-814(G)
This is the most important Arizona-specific fact for Phoenix homeowners facing foreclosure, and the one that differs most sharply from Texas:
What ARS § 33-814(G) says (simplified): After a non-judicial trustee’s sale, a lender CANNOT bring an action to recover the difference between the sale price and the outstanding loan balance (a “deficiency judgment”) if:
- The property is 2.5 acres or less
- The property is a single one-family or single two-family dwelling
- The trust deed was used to secure a purchase money mortgage (the loan was used to buy the property)
What this means for underwater Phoenix homeowners: If you bought your Phoenix home with a mortgage (rather than a refinance), you have 2.5 acres or less, and you live there (or did live there), the lender generally cannot sue you for the deficiency after a non-judicial trustee’s sale. You walk away with no remaining debt liability.
Refinance loans: The anti-deficiency protection typically does NOT apply to refinances. If you refinanced, the lender may be able to pursue a deficiency. The 90-day window to file a deficiency action also applies (ARS § 33-814(A)) — the lender must act within 90 days of the sale or lose the right to pursue deficiency even on eligible loans.
Short sale and anti-deficiency: If you are considering a short sale specifically to avoid the foreclosure record, weigh it against the anti-deficiency outcome. A poorly structured short sale (without a written deficiency waiver) on a purchase-money loan may give up anti-deficiency protection while creating new deficiency exposure. Consult an Arizona real estate attorney before agreeing to a short sale on an underwater purchase-money mortgage.
Your Options If You Are Behind on a Phoenix Mortgage
Option 1: Loss Mitigation During the 120-Day Federal Window
Contact your servicer immediately. Arizona does not have a mandatory mediation program. The ADOH (Arizona Department of Housing) operates housing counseling referral services — visit azhousing.gov or call 602-771-1000.
Option 2: Reinstatement Before the Trustee’s Sale
Arizona allows the borrower to reinstate the loan (pay all arrears plus costs) up to 5 business days before the scheduled trustee’s sale (ARS § 33-813). This stops the foreclosure and reinstates the original loan terms. If you have access to funds from family, an employer loan, or other sources, reinstatement is the cleanest resolution.
Option 3: Sell Before the Trustee’s Sale
A pre-foreclosure sale that closes before the trustee’s sale date stops the process entirely. Any equity above the payoff goes to you.
With the 91-day NTS period, a traditional Phoenix listing may be possible if you act immediately after the NTS is recorded — Phoenix DOM averages 28 to 50 days plus 30 days to close, which can fit within 91 days if you act fast. However, if you are also managing the federal 120-day period and have received only a recent NTS, a cash sale (7 to 14 days) is far safer and guaranteed to close within the window.
Option 4: Let the Trustee’s Sale Proceed (Anti-Deficiency Protection)
For Phoenix homeowners underwater on a purchase-money loan on a qualifying property, letting the trustee’s sale proceed may actually be the right decision: the lender cannot pursue a deficiency, your credit is damaged but you have no remaining debt, and the HVAC-related carrying costs of an unsellable underwater home are eliminated. This is a nuanced decision that requires an Arizona attorney — but it is a legitimate consideration in Arizona that does not exist in Texas.
Option 5: Chapter 13 Bankruptcy
Filing Chapter 13 triggers an automatic stay that halts the trustee’s sale. Arizona homestead exemption for Chapter 7: $250,000 in equity is protected ($150,000 for married couples if only one owns the property, though Arizona community property complicates this). Chapter 13 allows cure of arrears over 3 to 5 years. Consult a Phoenix bankruptcy attorney.
The Maricopa County Trustee’s Sale: What Happens
The sale is held at the time and location specified in the NTS (typically courthouse or designated auction facility). The trustee opens bidding at the lender’s credit bid. Third parties bid with certified funds. The highest bidder takes title via trustee’s deed.
No post-sale redemption. The former owner must vacate. If they remain, the new owner can file a Special Detainer action in Maricopa County Justice Court (one of the fastest eviction processes in the country — hearing within 3 to 6 days of filing).
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For the full overview of Phoenix fast-sale options, see: Sell My House Fast Phoenix AZ: Every Real Option in 2026
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