Arizona has two ways to foreclose on real estate. The common one for home loans is the trustee sale: a non-judicial auction run by the trustee under a deed of trust, governed by Title 33, Chapter 6.1. The other is judicial foreclosure: a lawsuit that ends in a court judgment and a sale by the sheriff, governed by Title 33, Chapter 6 and the execution statutes in Title 12. The two differ in ways that change what a buyer at auction actually gets, most of all on redemption.
Which loans go which way
A deed of trust that meets the definition in A.R.S. § 33-801 carries a power of sale, so the trustee can sell without going to court (A.R.S. § 33-807(A)). The beneficiary can still choose to foreclose it like a mortgage, in court, and then Chapter 6 governs (A.R.S. § 33-807(A); A.R.S. § 33-814(E)).
Mortgages, and deeds of trust that do not meet the Chapter 6.1 definition, “shall be foreclosed by action in a court” (A.R.S. § 33-721). There is no non-judicial option for them.
The two routes do not run at the same time. A lawsuit to foreclose a deed of trust may be filed any time before the trustee sale, and once one is filed, no trustee sale may be held unless the lawsuit is dismissed (A.R.S. § 33-807(B)).
Side by side
| Question | Trustee sale (deed of trust) | Judicial foreclosure |
|---|---|---|
| Who runs it | The trustee named in the deed of trust, under its power of sale (A.R.S. § 33-807(A)) | A court. The judgment directs the sheriff or a constable to sell under special execution (A.R.S. § 33-725(B)) |
| Court case needed | No | Yes |
| Public notice | Recorded, mailed, posted and published; sale no earlier than the 91st day after recording (A.R.S. § 33-807(D), A.R.S. § 33-808) | Posted for at least 15 days in three public places, including at or near the courthouse door, and published in a newspaper for three weeks (A.R.S. § 12-1621(A)(3)) |
| Where the sale happens | On the property, at a superior court building, or at the trustee’s place of business (A.R.S. § 33-808(B)) | At or near the courthouse door of the county (A.R.S. § 12-1621(C)) |
| Paying before the sale | The borrower or a junior lienholder may reinstate until 5:00 p.m. on the last business day before the sale (A.R.S. § 33-813(A)) | Payment to the selling officer before the sale is recorded as a certificate of payment (A.R.S. § 33-726) |
| Redemption after the sale | None. The deed is “absolute without right of redemption” (A.R.S. § 33-811(E)) | Six months, or 30 days if the court found the property abandoned and not used primarily for agriculture or grazing (A.R.S. § 12-1282, A.R.S. § 12-1283) |
| When the buyer gets a deed | Trustee submits the deed for recording within seven business days after payment (A.R.S. § 33-811(B)) | Sheriff’s deed only after all redemption periods expire (A.R.S. § 12-1286) |
| Deficiency on a small 1–2 family home | Not allowed after a trustee sale of 2.5 acres or less used for a one- or two-family dwelling (A.R.S. § 33-814(G)), with exceptions (A.R.S. § 33-814(H)) | Limited for purchase-money loans on such property (A.R.S. § 33-729(A)), with exceptions (A.R.S. § 33-729(B)–(C)) |
How a trustee sale works, briefly
The trustee records a notice of trustee sale, mails it to the parties and to anyone with a recorded interest, posts it on the property and at a superior court building, and publishes it once a week for four weeks (A.R.S. § 33-808(A); A.R.S. § 33-809). The sale cannot happen before the 91st day after recording. The borrower can reinstate until the last business day before the sale. At the auction every bidder except the beneficiary posts a $10,000 deposit, and the winner pays the balance by 5:00 p.m. the next business day (A.R.S. § 33-810(A); A.R.S. § 33-811(A)). The trustee’s deed conveys title clear of junior liens and subject to senior ones, with no right of redemption (A.R.S. § 33-811(E)). The full sequence is in how Arizona trustee sales work.
How a judicial foreclosure works
The judgment
The lender sues. When the court forecloses, it gives judgment for the full amount it finds due and directs that the property, or as much as is needed to pay the judgment, be sold (A.R.S. § 33-725(A)). The judgment provides for a special execution to the sheriff or a constable of the county to seize and sell the property (A.R.S. § 33-725(B)). How long the lawsuit takes depends on the case; the statutes set no fixed schedule comparable to the 91-day rule for trustee sales.
The sheriff’s sale
Notice of an execution sale of real property is given by posting for at least fifteen days in three public places in the county, one at or near the courthouse door, and by publishing a copy in a newspaper for three weeks before the sale (A.R.S. § 12-1621(A)(3)). The notice must describe the judgment, the parties, the amount and the court, and include the legal description and the street address or location (A.R.S. § 12-1621(B)). The property is sold at or near the courthouse door (A.R.S. § 12-1621(C)).
Credit against the judgment
The sale credits the judgment with the greater of the property’s fair market value or the sale price (A.R.S. § 12-1566(B); A.R.S. § 33-725(B)). A judgment debtor may ask the court to determine fair market value within thirty days after the sale (A.R.S. § 12-1566(C)).
Redemption: the biggest difference for buyers
At a trustee sale, the buyer’s title is final once the deed is recorded; the borrower has no statutory redemption right (A.R.S. § 33-811(E)). At a judicial foreclosure sale, the buyer waits.
- The borrower’s period. The judgment debtor may redeem within six months after the sale, or within thirty days if the court determined in the judgment that the property was abandoned and not used primarily for agricultural or grazing purposes (A.R.S. § 12-1282(A)–(B); A.R.S. § 12-1283(A)).
- Junior creditors next. If the borrower does not redeem, creditors with liens junior to the foreclosed lien may redeem in order of priority, each within five days after the prior period ends (A.R.S. § 12-1282(C); A.R.S. § 12-1283(B)).
- The price of redemption. The borrower pays the purchase price plus eight percent, plus any assessments or taxes the buyer lawfully paid after the purchase, with interest (A.R.S. § 12-1285(A)).
- The deed comes last. The sheriff executes and delivers the deed only when all redemption periods have expired, to the buyer or to the last redeeming creditor (A.R.S. § 12-1286(A)).
For an investor this means capital tied up for months with the possibility of being redeemed out, in return for the eight percent and reimbursed taxes. At a trustee sale, the trade-off is different: no redemption by the borrower, but you must confirm lien position, because you take subject to anything senior to the foreclosed deed of trust. Separately, if a federal tax lien was junior to the foreclosed lien, the United States may redeem within 120 days of the sale under 26 U.S.C. § 7425(d), or longer if local law allows.
Deficiency rules
If the sale brings less than the debt, Arizona limits what the lender can collect from the borrower personally, and the rule depends on the route.
- Trustee sale. For trust property of two and one-half acres or less, limited to and used for a single one-family or two-family dwelling, no deficiency action may be brought after a trustee sale (A.R.S. § 33-814(G)). For loans originated after December 31, 2014, that protection does not apply to certain builder-owned property, dwellings never substantially completed, or dwellings never actually used as dwellings (A.R.S. § 33-814(H)). Where a deficiency is allowed, the action must be filed within ninety days of the sale and is measured against the higher of fair market value or the sale price (A.R.S. § 33-814(A)).
- Judicial foreclosure. For a purchase-money mortgage on the same kind of small one- or two-family property, the judgment cannot reach the borrower’s other property (A.R.S. § 33-729(A)), except for loss in value caused by the borrower’s voluntary waste (A.R.S. § 33-729(B)) and for the same post-2014 categories (A.R.S. § 33-729(C)).
Deficiency rules matter more to borrowers than to auction buyers, but they are part of what a lender weighs when it chooses a route.
What the trustee-sale records show
Because trustee sales end in a recorded trustee’s deed that states the winning bid, they leave a clean public record of outcomes. Our analysis covers those deeds only; it does not include sheriff’s sales.
Which one are you looking at?
- A recorded notice of trustee sale means a non-judicial sale under Chapter 6.1. Read it with our notice guide.
- A lawsuit, a judgment and a sheriff’s sale notice mean judicial foreclosure. Plan for the redemption period before you count on owning the property.
- A notice of trustee sale followed by a foreclosure lawsuit means the trustee sale is off unless the lawsuit is dismissed (A.R.S. § 33-807(B)).
Track current Maricopa County trustee sales on our Maricopa County page, and read why sale dates move before you plan around one.
Frequently asked questions
Can a lender with a deed of trust choose judicial foreclosure in Arizona?
Yes. A.R.S. § 33-807(A) lets the beneficiary foreclose a deed of trust as a mortgage, in which case Chapter 6 of Title 33 governs. Once a foreclosure action is filed, a trustee sale may not be held unless the action is dismissed (§ 33-807(B)).
Is there a redemption period after a judicial foreclosure sale in Arizona?
Generally yes. A.R.S. §§ 12-1282 and 12-1283 give the judgment debtor six months after the sale, or thirty days if the court found the property abandoned and not used primarily for agriculture or grazing. The sheriff’s deed is delivered only after redemption periods expire (§ 12-1286).
Where are judicial foreclosure sales held?
A.R.S. § 12-1621(C) says real property sold under execution is sold at or near the courthouse door of the county where it is located, after posting and newspaper publication under § 12-1621(A)(3).