The Auction Process
On the scheduled date, the trustee offers the property for sale at public auction. Anyone can bid, including the trustee, the lender, or the borrower. The key rule is that only the lender (the beneficiary) can make a credit bid, meaning they can bid up to the amount owed without putting up cash. Every other bidder must provide a ten thousand dollar deposit just to participate.
On the date and at the time and place designated in the notice of sale, the trustee shall offer to sell the trust property at public auction for cash to the highest bidder. Any person, including the trustee or beneficiary, may bid at the sale. Only the beneficiary may make a credit bid in lieu of cash at sale.
A.R.S. § 33-810(A)Every bid is treated as an irrevocable offer until the sale is completed. If the property consists of multiple parcels, the trustee must conditionally sell them both separately and as a whole, then determine which approach produces the highest total price. The sale is considered complete once the highest bidder pays, and the trustee's deed is recorded within fifteen business days.
Postponements and Continuations
The trustee can postpone the sale by announcing a new date, time, and location at the originally scheduled auction. No additional notice is required beyond that public announcement. The new sale date must fall within 90 calendar days of the postponement announcement.
If a bankruptcy filing is discovered after the sale takes place, the sale is not complete. It is treated as postponed to a date announced by the trustee, or if none is announced, to the same time and place 28 days later. The trustee must notify all bidders who provided their contact information.
If a force majeure event prevents access to the sale location, the sale automatically moves to the next business day at the same time and place.
