Arizona at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Arizona deeds of trust give the trustee a power of sale, so the property can be sold at a trustee's sale without a court case; the sale may not be held before the 91st day after the notice of sale is recorded. At the lender's option a deed of trust may instead be foreclosed in court, the way a mortgage is. A.R.S. §33-807(A), (D); court foreclosure under A.R.S. Title 33, Chapter 6 (§33-721 et seq., including §33-725) Show the source texta power of sale is conferred upon the trustee of a trust deed under which the trust property may be sold, in the manner provided in this chapter, after a breach or default in performance of the contract |
| Who holds foreclosure surplus | After a trustee's sale the trustee applies the proceeds in a set order: sale costs, the foreclosed loan, association liens, junior lienholders by priority, and then the borrower (trustor) or, if the property was transferred before the sale, the owner of record at the time of sale. The trustee must mail the trustor a notice of any excess proceeds within 15 days of the sale. Instead of paying claimants directly, the trustee may deposit the balance with the county treasurer and file a civil action in superior court, where anyone with a recorded or other legal interest can file an application for distribution; the trustee must pay out or deposit within 90 days after the sale. After a court foreclosure, other liens are paid in order and the balance is paid to the mortgagor. A.R.S. §33-812(A)-(D), (G), (J), (K); court foreclosure: A.R.S. §33-727(B) Show the source textthe trustee may elect to deposit the balance of the proceeds with the county treasurer in the county in which the sale took place pending an order of the superior court in the county |
| Claim window for foreclosure surplus | Excess proceeds deposited with the county treasurer are presumed abandoned if they remain there for at least two years from the date of deposit and no application for distribution is pending. Presumed abandoned amounts over $50 are reported to the Arizona Department of Revenue as unclaimed property; amounts of $50 or less are transferred to the county general fund and can no longer be claimed. A.R.S. §33-812(L), (M), (N) Show the source textare presumed abandoned if the monies remain with the treasurer for at least two years from the date of deposit and there is no pending application for distribution |
| Tax sale excess proceeds | Arizona is a tax lien state: the county treasurer sells tax liens, and beginning three years after the lien sale the lien buyer may sue in superior court to foreclose the owner's right to redeem. In that case the property owner can ask the court to order an excess proceeds sale, which the court treats as reasonable if the likely sale price is more than $2,500 above the listed amounts owed. After such a sale a qualified entity pays sale costs, the lien holder and other tax and state liens, then pays any remaining proceeds to the property owner within 90 days; money unclaimed after 90 days is handled under Arizona's unclaimed property law. A.R.S. §42-18236(A)(4), (B); §42-18204(A)(2), (B); §42-18201(A); §42-18101(A) Show the source textTo the property owner whose right to redeem was foreclosed, any remaining proceeds of the sale. |
| Redemption after the sale | After a trustee's sale under a deed of trust there is no right of redemption. After a court foreclosure sale, the former owner may redeem within six months after the sale, or within 30 days if the court found the property was abandoned and not used primarily for agricultural or grazing purposes. A.R.S. §33-811(E) (trustee's sale); A.R.S. §12-1282(A)-(B) (court foreclosure sale) Show the source textThat conveyance shall be absolute without right of redemption and clear of all liens, claims or interests that have a priority subordinate to the deed of trust |
| Rules for recovery companies | For trustee's sale excess proceeds on deposit with the county treasurer, an agreement to pay a third party to recover them must be in writing, signed by the claimant and notarized, and any agreement made within 30 days after the trustee's sale is void. The fee must be reasonable; a fee over $2,500 (not counting attorney fees and the costs of filing the claim and giving the required notices) is presumed unreasonable and unenforceable unless the court approves more. Separately, for property reported to the Arizona Department of Revenue as unclaimed, a recovery agreement made within 24 months after the property is delivered to the department is void (an owner's agreement with an attorney to file a claim is excepted) and the fee may not be more than 30 percent of the property's value. A.R.S. §33-812(P); A.R.S. §44-327 Show the source textThe fee or payment shall be presumed to be unreasonable and the obligation to pay the fee or payment is unenforceable if the fee or payment agreed on exceeds two thousand five hundred dollars excluding attorney fees |
How surplus funds arise in Arizona
When a home in Arizona is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Arizona
We confirm the sale figures in the public record, identify which office in Arizona is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Arizona that program is the Arizona Department of Revenue, Unclaimed Property Unit.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Arizona law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Arizona
Arizona regulates this kind of service. For trustee's sale excess proceeds on deposit with the county treasurer, an agreement to pay a third party to recover them must be in writing, signed by the claimant and notarized, and any agreement made within 30 days after the trustee's sale is void. The fee must be reasonable; a fee over $2,500 (not counting attorney fees and the costs of filing the claim and giving the required notices) is presumed unreasonable and unenforceable unless the court approves more. Separately, for property reported to the Arizona Department of Revenue as unclaimed, a recovery agreement made within 24 months after the property is delivered to the department is void (an owner's agreement with an attorney to file a claim is excepted) and the fee may not be more than 30 percent of the property's value. (A.R.S. §33-812(P); A.R.S. §44-327)
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Arizona
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Arizona, from locating the funds to filing the claim.
After a trustee's sale the trustee applies the proceeds in a set order: sale costs, the foreclosed loan, association liens, junior lienholders by priority, and then the borrower (trustor) or, if the property was transferred before the sale, the owner of record at the time of sale. The trustee must mail the trustor a notice of any excess proceeds within 15 days of the sale. Instead of paying claimants directly, the trustee may deposit the balance with the county treasurer and file a civil action in superior court, where anyone with a recorded or other legal interest can file an application for distribution; the trustee must pay out or deposit within 90 days after the sale. After a court foreclosure, other liens are paid in order and the balance is paid to the mortgagor.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.