The Right to Reinstate Before Sale
Falling behind on a mortgage does not automatically mean losing the property. Arizona gives borrowers a defined window to catch up. The trustor, a successor in interest, or any party with a subordinate lien may reinstate the loan by paying all amounts currently due, curing any other defaults, and covering the associated costs.
The trustor or the trustor's successor in interest, any person having a subordinate lien or encumbrance of record thereon or any beneficiary under a subordinate trust deed, before 5:00 p.m. mountain standard time on the last day other than a Saturday or legal holiday before the date of sale or the filing of an action to foreclose the trust deed, may reinstate by paying to the beneficiary, the trustee or the trustee's agent in a form acceptable to the beneficiary or the trustee the entire amount then due.
A.R.S. § 33-813(A)The deadline is firm: 5:00 p.m. MST on the last business day before the sale date. After that, the right to reinstate is gone. Reinstatement does not require paying off the entire loan balance. It requires bringing the loan current, plus covering trustee fees, recording costs, and reasonable attorney fees the lender incurred.
What Reinstatement Costs
The expenses that must be paid for reinstatement include reasonable mailing and photocopying costs, recording and publication fees, postponement fees, the trustee's fee (capped at $600 or one-half of one percent of the unpaid principal, whichever is greater), and any attorney fees incurred in protecting the lender's interest. On request, the trustee must provide a good faith estimate of the total reinstatement amount. Once the trust deed is reinstated, the trustee must record a cancellation of the notice of sale. Failure to record the cancellation within thirty days makes the trustee liable for actual damages.