Disclaimer: This article is for informational purposes only and does not constitute legal advice. Please consult an attorney for advice about your situation.
Detailed Answer
When a trustee’s sale under a non-judicial foreclosure produces funds exceeding the debt, Arizona law allows a former owner or lienholder to claim the surplus. Follow these steps:
- Verify Surplus Funds
Obtain the trustee’s sale record from the county recorder. Confirm the sale price, outstanding liens, and administrative costs to calculate the net surplus. See A.R.S. § 33-812(B). - Prepare an Affidavit or Petition
Draft a written petition or affidavit stating your interest in the property, the amount claimed, and supporting documentation (deeds, lien records). Under A.R.S. § 33-813(B), include your name, mailing address, legal description of the property, amount requested, and evidence of your interest. - File the Petition with the Superior Court
File your petition in the superior court in the county where the property is located. Pay the applicable filing fee and submit proof of service forms. - Serve Notice on Interested Parties
Serve the trustee, trustee’s agent, purchaser at sale, and any known lienholders. Arizona Rule of Civil Procedure 4 governs service. Include a copy of the petition and notice of the hearing date. - Attend the Hearing
The court will schedule a hearing. Present your affidavit and any evidence supporting your claim. Respond to any objections from adverse parties. - Obtain Court Order and Collect Funds
If the court approves your petition, it will issue an order directing the county treasurer or trustee to disburse the surplus. Provide a certified copy of the order to the disbursing authority to receive payment.
Helpful Hints
- File within two years of the trustee’s sale to avoid statute of limitations issues.
- Gather all lien and payment records to ensure the correct surplus calculation.
- Verify service requirements under Arizona Rule of Civil Procedure 4 to avoid delays.
- Consider hiring a title company to trace all lienholders and simplify notice.
- Consult an attorney if multiple parties claim interest or if the dispute is complex.