Statement of Breach or Non-performance
(Nonjudicial Foreclosure/Trustee's Sale) (AZ)

Summary

This statement of breach or non-performance may be used by a lender/beneficiary that is seeking to foreclose on real property in Arizona by initiating a trustee's sale. This template contains practical guidance and drafting notes. This template may be used in connection with the nonjudicial foreclosure of commercial or residential property. At the option of the beneficiary, a deed of trust in Arizona may be foreclosed in accordance with the notice provisions of the trustee's sale statutes. See also Ariz. Rev. Stat. § 33-701. The beneficiary, upon the existence of a default, can initiate a nonjudicial foreclosure by notifying the trustee of the default and requesting that the trustee initiate the proceeding. The trustee then drafts and provides the beneficiary with the initial documentation to be executed in furtherance of the sale. As part of this documentation, the beneficiary must be provided with and execute a statement of breach or nonperformance that establishes the nature of the default. By signing this document, the beneficiary confirms the specific nature of the breach. The trustee can rely upon the statement, as well as any other information received from the beneficiary, and shall be insulated from future liability arising from any inaccuracy. Ariz. Rev. Stat. § 33-820(A). The statement also confirms the intent to commence a trustee's sale. For further guidance, see Commercial and Residential Foreclosure (AZ) and Foreclosure Resource Kit (AZ).