What is a foreclosure?
When a borrower doesn’t perform their financial obligations, a lender may legally seize and sell a home or other property. This method is called foreclosure. There are various types of foreclosures in Arizona.
- The trustee’s sale procedure is the most used in Arizona. When the lender decides to foreclose on the borrower’s property, there are laws governing the process. Normally the trustee’s sale, in comparison to other processes, is cheaper and quicker (at least 90 days). In this method, there is no court involvement.
- The second process is a judicial foreclosure. This is a court procedure. Therefore, it is more expensive and takes longer. The advantage for the lender is that a deficiency action could be brought against the borrower or guarantor. The homeowners’ association (“HOA”), or those who purchased back taxes may also use this court process.
- The sheriff’s sale comes after the judicial foreclosure. As was already mentioned, the process begins in court. The task of selling the property is then given to the sheriff. Lenders, HOAs, and investors in back taxes normally use this.
The following will explain a few of the fundamentals of Trustee’s Sale.
If you fall behind on your mortgage payments in Arizona, the trustee’s sale is one of the things your lender can do. A judicial foreclosure is the second option. The trustee’s sale is often chosen because it lets the lender move faster and costs less than the judicial foreclosure.
Quick Links to Articles & Resources
Learn more about the Trustee’s Sale process by clicking on the following link.
Visit “Trustee’s Sale Process”
Our frequently asked questions includes many questions about: foreclosure rescue scams, the trustee’s sale process, if you have a VA loan, living in the property and excess sale proceeds.
Visit Trustee Sale FAQs
(As of May 28, 2018 this became permanent Federal law. Also see links at bottom to Arizona Landlord Tenant Act)
by Attorney Janet Portman Protecting Tenants in Foreclosure Act – Federal legislation signed in May 2009 gives important rights to tenants whose landlords have lost their properties through foreclosure. The mortgage industry crisis that started in 2006 has resulted in thousands — no, make that millions — of foreclosed homes. Most of the occupants are the homeowners themselves, who must scramble to find alternate housing with very little notice. They’re being joined by scores of renters who discover, often with no warning, that their rented house or apartment is now owned by a bank, which wants them out.
Read More by visiting
Property which is pledged as collateral on a debt will sometimes be surrendered to the creditor if the debtor is unable to make payments.
The rise in incidents of foreclosure of homeowner mortgages across the nation is but one aspect of this. Repossessions of cars and mobile homes are also common occurrences in the current economic environment. This article explores the income tax consequences to the borrower which may ensue from surrendering property to satisfy a debt. In general there are two tax aspects to consider: (1) recognition of gain or loss on the transaction and (2) recognition of cancellation of indebtedness (COD) income.
Read More about this by visiting the link below
Tax Issues in short sales, trustee and sales and foreclosures, by Robert Ciancola
Visit “Sue on the Note or Foreclose on the Property – what is the difference?” by Stephanie Monroe Wilson. An Arizona attorney
Visit “Buying Tax Liens: Not an Entirely Gold Plated Investment“, by Chris McNichol, an Arizona Attorney
“Tax Lien Sales Winner for County (but not investors)“, by Mike Fimea, Arizona Business Gazette, February 19, 2004, volume 124
When deciding whether to fight to keep your home or let the lender foreclose, it’s important to know what the lender’s processes are.
How long before my house has equity?
Find out by using the calculator below. This tool will allow you to calculate when you will have equity in your home.
The principal and interest make up the majority of your mortgage payment. The main is the amount borrowed, while the interest is the fee paid to the lender. Your lender may additionally collect an additional sum each month to place in escrow, which the lender (or servicer) normally pays directly to the local property tax collector and your insurance provider.
Mortgage Repayment Calculator
mortgage payment calculator provided by bankrate.com
Clients from all across Arizona have put their trust in us
Rate Ms. Drain’s services: 5.0 out of 5.0
"Rate Ms. Drain’s services: 5.0 out of 5.0" Anonymous When I was looking for a bankruptcy attorney, the U.S. Courts’ website had some Phoenix attorney’s listed. I visited one in person and the then read Ms. Drain’s site. The in-person attorney gave me a 2 inch stack of papers [...]
They provide hope and ease throughout a very stressful situation
“They provide hope and ease throughout a very stressful situation” C.G. Diane and Jay provide hope and ease throughout a very stressful situation. Diane is thorough, knowledgeable, experienced and trustworthy. She takes her time with each step ensuring she understands the story. They are both available when [...]
I felt completely at ease
" I felt completely at ease." D.A. I was greatly relieved to find an attorney that I felt completely at ease with, confident in her professionalism and her staff; and to find someone I felt I could trust completely.
Diane Was Fabulous During Our Bankruptcy
“Her assurance that there was nothing to be ashamed of, gave us the incentive to proceed.” S.R. Diane was fabulous during our bankruptcy, guiding us every step of the way. After medical bills got us behind, we didn't know where to turn and felt uncomfortable filing. Her [...]
Thank you
“Thank you.” N.L. Thank you speaking with me and for the advice given. Wish I would have found you to begin with.
Diane and Jay were amazing!
“Amazing Experience” E.L. Diane and Jay were amazing! They made everything so easy and answered all of my questions thoroughly. I appreciate all the help and guidance I received throughout my filing experience. I would highly recommend Diane to anyone looking into bankruptcy. [...]
She is like your favorite professor who just happens to be a spitfire attorney and advocate for understanding, support, kindness and knowledge.
“She is like your favorite professor who just happens to be a spitfire attorney and advocate for understanding, support, kindness and knowledge.” N.B. I can't describe in a short review how much Diane and her team changed my life. I'm not being dramatic or cheesey. I had [...]
Again, thank you
"Again, thank you." D & J Again, thank you. You made this unpleasant experience very calming and reassuring for both me and my wife.
You helped me in many ways and I am very grateful
" You helped me in many ways and I am very grateful!" D. I can’t tell you how glad I am that you were our bankruptcy attorney. You helped me in many ways and I am very grateful. Most of all, I appreciate your frankness and honesty. You always [...]
I can not imagine being treated with more professionalism
"I can not imagine being treated with more professionalism!" S. I want to express my appreciation to you and your assistant Jay for all your hard work. I can not imagine being treated with more professionalism and respect that you did. Going to the entire bankruptcy process [...]
Rated high among her peers
"Rated high among her peers" Anonymous Ms. Drain helped make a very difficult time more bearable. She treated us with the utmost respect and caring while pushing us to get together the paperwork needed to get us to the best possible end result. It was very obvious [...]
This has made a huge difference in my life
“This has made a huge difference in my life” D.S. I approached Diane with a large debt problem. Although I was working with a company to pay down the debt, one of the credit card companies decided to sue me. This would have destroyed all my pay-back [...]
We were provided affordable comprehensive representation.
“We were provided affordable comprehensive representation.” R.B. I consulted the law office of D.L. Drain expressing our need to file bankruptcy having very limited resources. They accessed our situation and needs; educated us about bankruptcy options and ramifications. We were provided affordable comprehensive [...]
Diane took over my case when my other attorney was disbarred.
“Diane took over my case when my other attorney was disbarred. ” M.W. Diane Drain is consummate professional. She took over my case when my other attorney was disbarred. This meant appearing on my behalf in Federal Court Judge (not just the Trustee) with about one week’s [...]
Free consultation and we are ever so grateful
free consultation and we are ever so grateful. C.M. Diane gave invaluable advice during the free consultation and we are ever so grateful. If and when the time comes to pursue further actions financially, Diane is without-a-doubt the one who will guide us. Thanks again! [...]
It was clear she cared and was committed to helping people
"It was clear she cared and was committed to helping people." Posted on AVVO Anonymous When I made my decision to file for bankruptcy I did some research. I went through a link on the U.S. court website and read a lot online. Referrals from the court website [...]
Highly recommend Diane Drain!
“Highly recommend Diane Drain!” J.P. I could not have made a better choice than Diane to help me with my bankruptcy case. During what is a very difficult and stressful time, she made things so easy to understand and the process could not have gone smoother. If [...]
Diane and Jay helped out a family member file a bankruptcy.
"Some firms make you feel like a number and just want you to do the bankruptcy that benefits them more. Not Diane." S.E. Diane and Jay helped out a family member file a bankruptcy. They were very easy to work with during a their difficult time. Compassionate and [...]
Discharge in Bankruptcy – the basics
Reprint from the United States Bankruptcy Court The bankruptcy discharge varies depending on the type of case a debtor files: Chapter 7, 11, 12, or [...]
Beyond the Bankruptcy Paperwork: It’s Not Just Filling Out Forms, and Understanding The Attorney’s Role
Many people, including inexperienced attorneys, think that bankruptcy is simple. To quote a first-year law student on their first day in bankruptcy class, "It is [...]
A Cautionary Tale for Arizona Homeowners
After 100 Years of Protecting Homeowners, Arizona's Law Changes to Give Creditors New Rights to Take Your Home Depending on the [...]
The Lowdown on Business Bankruptcy: What You Need to Know
Bankruptcy is a complex process that can have significant implications for your business and personal finances. Before considering business bankruptcy as an option for [...]





