Selling before a trustee's sale in Arizona

If a Notice of Trustee's Sale has been recorded against your property, you are now receiving letters and calls from people who found your name in a public notice. Most of them will imply you have to act immediately and that selling to them is the only way out.

Neither is quite true. Here is the actual timeline and the actual options, including the ones that do not involve us.

The Arizona timeline

Arizona foreclosures are usually non-judicial, carried out through a deed of trust rather than a court case. The sequence is set by statute:

• The lender records a Notice of Trustee's Sale.
• The sale cannot be held earlier than 91 days after that recording (A.R.S. 33-807 and 33-808).
• Notice goes to parties on the trust deed within 5 days, and to others within 30 days.
• The notice is posted for 20 days and published once a week for four weeks, with the last publication at least 10 days before the sale.
• Sales can be postponed, and frequently are — though no single continuance can exceed 90 days.

Uncontested, the process typically runs 90 to 120 days from the recording. Counting the missed payments beforehand, the whole arc is often 200 days or more.

Work back from your recorded sale date. That is the number that matters, and it is on the notice you received.

Your options, including the ones that are not us

We would rather you chose well than chose fast:

• Reinstate. Pay the arrears, fees and costs and the loan returns to current. You generally have the right to do this up until shortly before the sale.
• Loan modification or forbearance. Servicers have real programmes. Contact yours directly and in writing, and keep records.
• HUD-approved housing counseling. This is free. A counselor works for you, not a lender or a buyer, and can negotiate on your behalf. If you do only one thing from this page, do this one.
• List it on the market. If you have equity and enough runway before the sale date, a listing may net you more.
• Short sale. If you owe more than it is worth, your lender may approve a sale below the balance.
• Sell to a cash buyer. Fastest and most certain, at a lower price than a healthy listing would bring. That is the honest trade.

Why letting it go to auction is usually the worst outcome

If you have equity in the property, a trustee's sale is where that equity is most likely to disappear. The sale exists to satisfy the debt, not to get you the best price. A controlled sale before the auction date gives you a far better chance of walking away with something, and avoids a completed foreclosure sitting on your record.

If you have no equity at all, the calculation is different and a short sale or deed in lieu may serve you better. A HUD counselor can tell you which side of that line you are on.

Where we fit

We are useful in one specific circumstance: the sale date is close, you have equity worth protecting, and you need certainty rather than the best possible price. We buy with our own cash, so there is no lender to withdraw at the last minute, and escrow can close in as little as seven days.

Tell us the recorded sale date on the first call. If the timeline does not work, we will say so straight away rather than burning days you cannot spare.

Back taxes or other liens on top of the mortgage do not stop a sale — see selling with liens.

Common questions

How long do I have once the Notice of Trustee's Sale is recorded?

In Arizona the sale cannot be held earlier than 91 days after the Notice of Trustee's Sale is recorded. That is a floor, not a promise — sales are frequently postponed. But 91 days from recording is the earliest the auction can legally happen, so that is the date to work back from.

Can I still sell after the notice is recorded?

Yes. You can sell at any point up until the sale actually happens. Selling before the auction is generally far better for you than letting it go through, because you may capture equity that would otherwise be lost and you avoid a completed foreclosure on your record.

Should I just let it go to auction?

Usually not, if you have any equity. At a trustee's sale the property is sold to satisfy the debt, and any equity above that is far more likely to be preserved through a controlled sale than an auction. If you have no equity at all, other options including a short sale or handing the keys back may make more sense — talk to a HUD counselor.

Do I have to sell to you to stop the foreclosure?

No, and we would rather you knew the alternatives. You may be able to reinstate by paying the arrears, negotiate a loan modification or forbearance with your servicer, sell on the open market if there is time, or pursue a short sale. HUD-approved housing counseling is free. Selling to us is one option among several.

Will you buy if the auction is only a couple of weeks away?

Often yes. This is the situation where a seven-day close genuinely matters. Tell us the recorded sale date on the first call so we can tell you immediately whether it is realistic rather than wasting days you do not have.

Does a trustee's sale get published where people can see it?

Yes. The notice is posted on the property and published once a week for four weeks, with final publication at least ten days before the sale. That publicity is also why owners in this position start getting a flood of letters and calls.

What to do next

Call or text (480) 818-4105 with your address and your recorded sale date, Monday to Friday 8:00 AM to 5:00 PM. Or send the address and we will pull the record ourselves.

And whatever you decide about us: contact a HUD-approved housing counselor. It costs nothing and they are on your side.