How Property Secures a Debt
When you take out a mortgage in Arizona, the transaction often involves a deed of trust rather than a traditional mortgage. The borrower (called the trustor) transfers legal title to a neutral third party (the trustee) to hold as security for the lender (the beneficiary). The borrower keeps possession of the property and uses it normally, but the trustee holds title until the debt is fully paid.
Transfers of trust property may be made to secure the performance of a contract or contracts of the trustor or any other person. An interest in the trust property acquired by the trustor subsequent to the execution of the trust deed shall inure to the trustee as security for the contract or contracts for which the trust property is conveyed as if the interest or claim had been acquired before execution of the trust deed.
A.R.S. § 33-806(A)This means if you later acquire additional rights in the property, those rights are automatically covered by the deed of trust. The lender's security grows along with your ownership interest.
Protecting the Property While the Loan Is Active
Both the trustee and the lender have legal standing to protect the trust property. If someone damages the property, commits waste, or does anything that weakens the lender's security, the trustee or beneficiary can file a lawsuit to stop it and recover damages, including attorney fees.
The trustee or beneficiary shall have a right to maintain an action against any person, including the trustor, for a claim for relief where damage or injury occurs or may occur to the trust property or interests therein.
A.R.S. § 33-806(B)This protection applies while the borrower is in possession or control of the property. It covers physical damage, waste, and any conduct that impairs the value of the security. The lender does not have to wait until the property is destroyed to take action. Threatened harm is enough.
