Heurlin Sherlock
1636 North Swan Road
Suite 200
Tucson, Arizona 85712

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Property Foreclosure

If you are threatened with foreclosure, you must understand your legal rights. Foreclosure is the enforcement of a lien, mortgage, or deed of trust by a lender or their agent, when the borrower defaults on a loan secured by a piece of property.

In Arizona, there are two methods of foreclosure. The first is called a Judicial Foreclosure. This method is initiated by the lender filing a lawsuit against the defaulting borrower. Once the lender obtains a judgment against the borrower for the amount of default, plus costs and fees, the property is then sold through a public auction. Mortgages must be foreclosed through Judicial Foreclosure.

More common in Arizona is a Power of Sale. The lending institution has borrower sign a Promissory Note secured by a Deed of Trust, which provides the trustee with the Power of Sale. The trustee initiates the foreclosure by filing a Notice of Sale. The Power of Sale bypasses the lawsuit process and allows the trustee to sell the property at a public auction.

Both methods of foreclosure are subject to the rules and procedures set forth in Arizona laws. Anyone involved in foreclosure proceedings must be aware of the foreclosure process and law.

Questions include:

  • Can a borrower be sued personally on the defaulting loan or is the borrower protected by Arizona's Anti-Deficiency Statutes?

  • What happens to other liens on the property after the sale?

  • Is the borrower entitled to any excess proceeds after the sale of the property?

  • Does the borrower have to pay taxes on the amount of debt forgiven as a result of the foreclosure?

  • HS has an experienced team of attorneys that can advise you on the legal process of foreclosure. Our attorneys have handled all aspects of foreclosure proceedings.

    HS also represents lenders holding liens to property. Our attorneys consult with lenders regarding their rights to foreclose on property liens.

    For an initial consultation of your case, please call Heurlin Sherlock or visit www.aztoplawyers.com