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 a security interest for a loan, Arizona's deed of trust framework offers a streamlined process. This is especially true when a borrower defaults and foreclosure proceedings begin. 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. The rule applies 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. The two instruments are similar in purpose but have different enforcement steps. A mortgage typically requires judicial foreclosure through the courts. A deed of trust gives the trustee the power of sale, allowing a non-judicial process that is faster and less expensive.
For families involved in real estate, this distinction affects what happens when selling the property or dealing with a lender. Under a deed of trust, the trustee holds legal title until the loan is fully paid. The borrower keeps the right to use and occupy the property, but the trustee's role as a neutral party is what makes the non-judicial foreclosure proceedings possible.
Understanding this statute helps property owners see why their loan documents reference a deed of trust rather than a mortgage. The security interest works the same way in practice. The difference is in the enforcement process if something goes wrong.