A foreclosure is a legal process whereby a lender takes action to recover the balance of a delinquent mortgage loan by auctioning the underlying property. In Arizona, a foreclosure typically occurs through a ‘trustee’s sale’. Essentially, the property in question is auctioned off and the proceeds are used to repay the loan.
A Foreclosure Sale May Result in Excess Funds
Of course, the proceeds of the trustee’s sale will not always match the payoff of the loan. Indeed, in some cases, the foreclosed property is sold at a price that is greater than the value of the outstanding mortgage. This difference is referred to as ‘excess proceeds’. In Arizona, property owners or their heirs may be entitled to these funds.
This raises an important question: How long do I have to recover excess proceeds in Arizona? Under Arizona law (Arizona Revised Statutes § 33-812), there are strict rules regarding how the funds of a trustee’s sale should be applied. After all other claims from the trustee’s sale have been settled, state law mandates that any excess proceeds must be deposited with the appropriate county treasurer for at least two years. If no application is filed within two years, the county can presume the money to be abandoned and it will eventually be paid to the State of Arizona. You should not wait to take action—protect your rights by hiring an attorney to help recover excess proceeds in Arizona.
When a Lawsuit is Filed, Certain Deadlines Will Apply
When the lawsuit is filed depositing excess proceeds into the court, there are important deadlines that will apply for anyone claiming the excess proceeds. If you receive notice that a lawsuit has been filed, it is imperative that you take immediate action to protect your legal rights. Do not assume that you have two years to wait to collect excess proceeds that may be available to you. Failure to respond to a lawsuit could result in the funds being disbursed to another party who is pursuing a claim. If you believe that you, your company, or your organization is entitled to a share of excess proceeds, call an experienced Arizona real estate attorney as soon as possible.
Speak to Our Arizona Excess Proceeds Lawyer Right Away
At The Law Offices of Mary T. Hone, PLLC, our Arizona real estate attorney has extensive experience representing clients in excess proceeds cases. If you have any specific questions about your rights, we are ready to help. For a strictly confidential initial consultation, please contact our law firm today. From our office in Scottsdale, we serve clients throughout Arizona.