subject: Fundamental Business And Options Of The Arizona Foreclosure [print this page] The procedure of the Arizona foreclosure can be confusing and frustrating. And when one is losing his or her house, these feelings seem magnified.
The delinquency or default period can begin as soon as in one day that your mortgage payment is late. Because most home owners in Arizona have a trust deed, there is no need for the mortgage lender to go to court. They simply need to appoint a trustee.
A mortgage loan company may want to help you stop this foreclosure. If this is the case, there are some options you have in doing this. You will need to work together with the loan company, and at the very least you may be able to delay the proceedings.
The first choice is for the home owner to be able to pay the delinquent amount in installments, perhaps up to six months, but generally not longer than twelve months.
Loan modification is your next choice. With this choice you would be able to re-amortize the balance of the mortgage loan. You would need to decide if this would be the best option for you.
Refinancing may be the answer. In this case the type of refinancing that would be done is where the delinquent amount of the loan is wrapped into the refinance. A second mortgage might be another option, as well as a line of credit. Then there is always the option of selling to house to make good on the loan.
A deed in lieu of foreclosure is a last option, and it is usually used as a last resort. The real estate owner actually hands over the deed to the mortgage company. In this way he is released from all responsibilities regarding the mortgage. However, if a second mortgage is owed, or if there is a lien on the house, this will not be an option.
If the mortgage company does not want to work with the owner of the real estate, however, the foreclosure can happen very quickly, and the company will obtain legal ownership in no time. In this case, the home owner has no rights to the home anymore, and he and his family are evicted.
Normally, the default period is from one to one hundred twenty days. This all depends on each individual circumstance. Then a Notice of Sale is filed. This will include the date and time that the sale is set, and it is filed with the Recorders Office. At that time it is determined that there will be a minimum of ninety days before the sale actually takes place.
Then the property owner is offered as a last resort a reinstatement loan. This would be to bring the loan up to date and current and to actually stop the foreclosure proceeding. If this takes place, the home owner will need to pay all late fees and the lenders fees, along with the outstanding mortgage payments. Sometimes a payment plan may be worked out. This is called a forbearance agreement. This can be determined within one day.
If after all of the solutions above have not been able to save the home, the Arizona foreclosure takes place, and this is actually called a Trustee Sale in Arizona. The highest bidder, and it can even be the mortgage loan company, wins the home. The proceeds pay off the debt, the primary lien against the home, which is the trust deed. It is at this time that all the rights of the home owner are finished.
