How to Avoid Foreclosure in Arizona When You’re Behind on Payments

by Heath Sullivan

Falling behind on your mortgage in Arizona is terrifying. The letters start showing up, the phone rings nonstop, and it feels like the bank is closing in from every angle.

Before you panic, take a breath. You actually have more options than “wait for foreclosure and hope it works out.”

In this post, I’ll walk you through real moves Arizona homeowners can make, including when it might make sense to sell your house quickly for cash to protect your credit and your sanity.

Talk to Your Lender First (Yes, Really)

It’s tempting to ignore the calls, but that usually makes things worse.

Most lenders would rather work with you than complete a foreclosure. Ask about:

Loan modification (changing terms to lower your payment)
Forbearance (temporary pause or reduction in payments)
Repayment plans (catching up over time)

If those options won’t work, you can still take control instead of letting the bank decide your future.

Understand the Arizona Foreclosure Timeline

Arizona is a non-judicial foreclosure state, which means things can move quickly once a Notice of Trustee’s Sale is recorded.

The key: even after that notice, you often still have time to sell your home before the sale date and avoid a foreclosure on your credit. But the longer you wait, the fewer options you’ll have.

If you’re in a situation due to medical bills or job loss, you may also want to read my guide on using your home to reset:
👉 Selling Your Arizona Home After Medical Bills or Job Loss

Your Main Options If You Can’t Afford the House

If keeping the home isn’t realistic anymore, you generally have three main paths:

Sell on the open market
- Pros: Potentially highest sale price.
- Cons: You’ll need the house show-ready, may have to make repairs, and you’re at the mercy of buyer financing and inspections. That can be tough on a tight timeline.
Short sale
- If you owe more than the home is worth, a short sale lets you sell for less than the loan balance with the bank’s approval.
- Pros: Usually better than foreclosure for your credit.
- Cons: Slow, paperwork-heavy, and not guaranteed.
Sell quickly to a cash buyer or investor
- Pros: Close fast, sell as-is, avoid repairs and showings, and often close in days instead of months.
- Cons: You trade some equity for speed and certainty.

To see what a fast cash offer might look like for you, you can visit my cash-offer page here:
👉 Get a Fast, As-Is Cash Offer

When a Fast “As-Is” Sale Makes Sense

A quick cash sale might be your best move if:

You’re already several payments behind
The house needs more repairs than you can afford
You’ve received a Notice of Trustee’s Sale
You’re also dealing with divorce, medical issues, or job loss

In those cases, trading some equity for a clean, fast exit can be the difference between:

Walking away with cash and a plan, or
Having a foreclosure follow you for years.

If you’re dealing with divorce on top of this, I’ve also broken down your options in detail here:
👉 Selling a House During Divorce in Arizona

How I Help Arizona Owners Avoid Foreclosure

When I sit down with homeowners in Gilbert, Chandler, Queen Creek, Mesa, and the rest of the East Valley, my job is simple:

Help you understand exactly what you owe
Lay out your options clearly
Connect you with serious cash buyers who can close quickly if that’s the right move
Handle the details so you can focus on your next chapter

Sometimes the best path is a traditional listing. Sometimes it’s a fast cash offer. My goal is to help you make that decision with clear numbers, not fear.