4.2.1 Failure to Follow Trustee's Sale Procedures.

• Jurisdiction: Arizona

Where A.R.S. § 33-811, protecting “purchasers or encumbrancers for value without actual notice,” does not apply, the statutory procedures for noticing and conducting a trustee’s sale must be followed to result in a valid sale. In Eardley v. Greenberg, 160 Ariz. 518, 774 P.2d 822 (App. 1989), review granted in part, denied in part, op. vacated in part, 164 Ariz. 261, 792 P.2d 724 (1990), the Arizona Supreme Court held that a beneficiary’s refusal to clarify the authority of the trustee to act under a questioned Notice of Substitution of Trustee raised a triable issue of fact about the validity of the trustee’s sale.

Defenses to the trustee’s sale procedure should be raised and ruled upon not later than the day before the sale. A.R.S. § 33-811 (C) provides:

The trustor, its successors or assigns, and all persons to whom the trustee mails [a notice of trustee’s sale] shall waive all defenses and objections to the sale not raised in an action that results in the issuance of...