The Sale Process at Auction
On the scheduled date, the trustee offers the real 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. This means they can bid up to the amount owed without putting up cash. Every other bidder must provide a ten thousand dollar deposit 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 a binding offer until the sale is complete. If the property has multiple parcels, the trustee must conditionally sell them both separately and as a whole. The approach that produces the highest total price wins. The sale is considered complete once the highest bidder pays. The notice of trustee sale and a trustee's deed are then recorded.
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. The trustee announces a new date, or if none is announced, the sale moves 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. Even experienced Arizona practitioners sometimes encounter these delays.
Judicial foreclosures follow a different process entirely. The power of sale described here applies only to non-judicial trustee sales under a deed of trust.