How does the foreclosure process work here in Arizona? There are a few steps involved.
First, let’s review what a foreclosure is. Banks in Arizona foreclose on a property when the homeowner stops making their mortgage payments. Before they do so, they’ll try to work out a payment solution with the homeowner. If they can’t find a solution, they’ll file for an official foreclosure, which is a matter of public record here in Maricopa County.
The first thing that happens is the homeowner will receive a notice of foreclosure in the mail. A foreclosure notice will also be posted on the front door of their house with the date of auction listed.
The foreclosure process itself takes 90 days, so the homeowner has that exact amount of time to pay what they owe to the bank if they want to prevent the foreclosure. If that time period passes and the debt isn’t settled, the home is auctioned off.
The auction takes places either at the steps of the county courthouse or in the foreclosure attorney’s office. Since it’s a public auction, anyone has the right to bid on the property. The person who places the highest bid and wins the property must make a non-refundable $10,000 deposit. They then have 24 hours to provide the rest of the funds for purchase.
Buying a foreclosed home at an auction is a good opportunity to make a profit, but the process is very risky, so you need to work with a professional or at least educate yourself on the process before you do so.
If you’re a homeowner who’s facing foreclosure, keep in mind that there are plenty of ways to keep your home from being auctioned off. Banks prefer not to foreclose on properties, so they’d be more than happy to help you come to a solution.
If you have any questions about this or any other real estate topic or you’re thinking of buying or selling a home, don’t hesitate to reach out to me. I’d be glad to help.