Legal Question in Real Estate Law in Arizona

The lender is not obligated to take legal ownership because you have moved out. If you default in your payment of the loan, the lender has the right to foreclose, sell the house to recover as much of their loan as possible. The lender may have the right to go after you for the deficiency, if any.

If you had tried to convey ownership of the property to the lender (by giving the lender a deed in lieu of their foreclosing on the property), they may have agreed to accept ownership, although they are not obligated to do so. If your HOA rules state that you are personally liable for association dues, assessments, etc., then the HOA can sue you for those charges, even though the house is foreclosed on or you conveyed the property to the lender.