If the lender is the highest bidder, the property becomes "Real Estate Owned" (REO). Generally, it's best to avoid a foreclosure auction.Mortgage Loans in Arizona. If you get a loan to buy residential real estate in Arizona, you'll likely sign two documents: a promissory note and a deed of trust. "Judicial and Non-Judicial Foreclosure: Strategies and Remedies after. Default. " 549 Practising Law Institute Commercial Real Estate Financing 119. Capital Fund 1 has been lending money to qualified borrowers to complete real estate projects. Real Estate Finance: Arizona (3-500-5703). The first strategy is called a "foreclosure workout". The first attempt to sell a foreclosed home is typically through a public auction, then through a real estate agent if the home doesn't sell at auction.