Foreclosure and Bankruptcy in Phoenix

Arizona uses non-judicial (trustee sale) foreclosure with a timeline of approximately 90 days from the recording of the notice of trustee sale. Bankruptcy can stop the process immediately.

This page provides general educational information, not legal advice. Consult a qualified attorney for advice about your specific situation.

How Foreclosure Works in Arizona

Arizona is a non-judicial foreclosure state using a deed of trust system. The trustee records a notice of sale at least 90 days before the sale date and mails notice to the borrower. The sale occurs at public auction. Arizona has no statutory right of redemption after a trustee sale (only after judicial foreclosure). However, Arizona's anti-deficiency statute (A.R.S. section 33-814(G)) prevents lenders from pursuing a deficiency judgment after a trustee sale on purchase-money loans for properties on 2.5 acres or less.

How Bankruptcy Stops Foreclosure

Filing bankruptcy triggers the automatic stay under 11 U.S.C. section 362, which immediately halts all foreclosure activity whether the foreclosure is just beginning, in progress, or about to happen.

Arizona-Specific Foreclosure Issues

Maricopa County processes more trustee sales than almost any county in the Southwest. Phoenix's rapid population growth and housing price volatility mean many homeowners find themselves underwater. Arizona's anti-deficiency statute is a significant protection: after a trustee sale on a purchase-money deed of trust for property on 2.5 acres or less, the lender cannot pursue you for the shortfall.

Chapter 13: The Foreclosure Defense Tool

1File your Chapter 13 petition

The automatic stay immediately stops the foreclosure.

2Calculate your arrears

Determine the total amount of missed payments, late fees, and attorney fees.

3Propose a repayment plan

Spread arrears over 3-5 years while resuming regular payments immediately.

4Complete the plan

All arrears are cured and your mortgage is current. Other unsecured debts are typically discharged.

Homestead Exemption in Arizona

Arizona's homestead exemption protects $250,000 under A.R.S. section 33-1101 (increased from $150,000 in 2022). This is critical in Chapter 7 for determining how much equity the trustee can reach. In Chapter 13, you keep all property and pay through your plan.

Frequently Asked Questions

How does foreclosure work in Arizona?

Arizona uses non-judicial (trustee sale) foreclosure. Arizona is a non-judicial foreclosure state using a deed of trust system.

Can bankruptcy stop foreclosure in Phoenix?

Yes. Filing immediately triggers the automatic stay, which halts foreclosure regardless of how far along it is. Chapter 13 allows you to cure missed payments over 3-5 years.

How long does foreclosure take in Arizona?

In Arizona, foreclosure typically takes approximately 90 days from the recording of the notice of trustee sale.

What is the homestead exemption in Arizona?

Arizona provides a homestead exemption of $250,000 under A.R.S. section 33-1101 (increased from $150,000 in 2022).

Can I get my house back after foreclosure in Arizona?

Arizona does not provide a right of redemption after a trustee sale. Filing bankruptcy before the sale is critical.

Chapter 7 vs. Chapter 13 for foreclosure?

Chapter 7 delays foreclosure temporarily. Chapter 13 stops the sale and allows you to catch up on arrears over 3-5 years while resuming regular payments.

Check Your Eligibility

Use the free 1328(f) screener to check whether a prior discharge affects your eligibility for a new bankruptcy discharge.

Free Discharge Screener Means Test Guide

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