Excess Sale Proceeds Articles & Links

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.

1. 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.
2. 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.

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.

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.

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.