subject: Information About Arizonas Foreclosure System [print this page] Foreclosure is a legal proceeding initiated by a creditor to repossess the collateral for a loan that is in default. No one ever wishes for a closure to happen. However, one can file for bankruptcy when one cannot anymore keep up with the payments. Sometimes, creditors may abuse the foreclosure system making one end up in a much worse scenario. This has actually happened to a person from Arizona.
One of the best methods to guard ones self becoming abused is to understand how the foreclosures method operates. There are two types of foreclosure procedures in Arizona: judicial and nonjudicial. In a judicial foreclosure, the borrower can be sued for his or her mortgage debts as a requirement from the creditor. And for the creditor to recover the debt, a judge must first approved for the property to be sold. On the other hand, a nonjudicial foreclosure can allow the creditor to sell the property and recover the debt without the permission of a judge. Moreover, there are methods that must be implemented to foreclose a property legally. And these two processes are not alike.
The Process for Judicial Foreclosure
Once an individual is late for more than 30 days and has missed multiple payments, the creditor will then file a foreclosure complaint with the court system. Next, an individual needs to file an answer to the complaint. After that, the hearing date will probably be arranged. The judge will enter a default judgment and order a ruling if the individual will not sent in a response. After that, the lender can easily assess and market the house for sale when the judge rules to sell the property. If the individual still lives in the property, a sheriff will have to evict the borrower once the property is sold. However, this kind of foreclosure rarely happens in Arizona.
The Process for Nonjudicial Foreclosure
In Arizonas nonjudicial process, the creditor is required to give notifications to the individual regarding each stage of the foreclosure process. A foreclosure process can be started by a creditor if the individual is late with his mortgage payments for more than 30 days. A notice of sale must be filed with the recorders officer together with the time and date of the auction sale if ever the foreclosure is pursued. A notification with the notice of trustee sale must be sent off to the owner of the property (individual who owed the money) before the auction is held. This should be done no more than 90 days.
A trustee to the property will be required from the creditor which happens to be the one legally right to sell the property in a trustee sale. After 90 days or more, a trustee sale will then happen. In order to pay the loan balance, money from the selling of the property will then be used. Eviction will then happen if the debtor still lives within the property.
No matter the process of the foreclosure, there will always be a time that the system can be abused. So, in order to be protected, get the help of an Arizona Bankruptcy Lawyer.
