Why Arizona Uses Deeds of Trust Instead of Mortgages
Arizona is primarily a deed of trust state. While both mortgages and deeds of trust serve as security for a loan, Arizona's deed of trust framework offers a streamlined process, particularly when it comes to foreclosure. This statute confirms that deeds of trust can be executed as security for the performance of any contract, not just traditional home loans.
Deeds of trust may be executed as security for the performance of a contract or contracts. Except with respect to chapter 6 of this title, statutes of this state which refer to mortgages as security instruments are deemed to also include deeds of trust, unless the context otherwise requires.
A.R.S. § 33-805The Practical Effect for Property Owners
The second sentence is the key provision. It means that whenever an Arizona statute mentions a "mortgage" as a security instrument, that reference automatically includes deeds of trust too. This avoids confusion and ensures property owners and lenders have consistent protections regardless of which instrument they use.
The one exception is Chapter 6 of Title 33, which deals specifically with mortgages and their own set of rules. That separation keeps the mortgage chapter's provisions distinct from the deed of trust chapter's provisions, since the two instruments, while similar in purpose, have different enforcement mechanisms. A mortgage typically requires judicial foreclosure through the courts, while a deed of trust allows the trustee to conduct a non-judicial sale, a faster and less expensive process for all parties involved.
