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 default period of the mortgage can begin as early as one day late. This is also called the delinquent period. Most Arizona home owners have a trust deed. For this reason there is no reason for the lender to go to court. But they will need to get a trustee appointed.
If you are fortunate enough to have a mortgage lender that is willing to work with you in preventing this foreclosure, or at least delaying it, there are steps to be taken and choices to be made in order to do this.
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.
The second option is a loan modification. That is the re-amortizing of the remaining amount of the mortgage loan, or the balance.
Another thing they can do is to refinance the house. This type of refinancing will wrap in any of the late payments. There is also a line of credit, or second mortgage, which may be another option. And of course, the home owner could always sell the house to get out of the debt.
Then there is the deed in lieu of foreclosure. It is a last resort, and it releases the property owner of all responsibilities of the mortgage, because the deed is simply handed back to the mortgage company. If there is a lien against the property, however, or there is a second mortgage on it, this option is off the table.
A foreclosure can happen quickly, if the lender does not wish to work with the home owner. And the mortgage company will legally obtain the ownership of the house. The home owner will no longer have any rights to the home in question, and he will be evicted.
Ninety days after a Notice of Sale is filed with the Recorders Office, the home will be sold at the set day and time. This is after a delinquent period of from one to one hundred and twenty days, depending on the circumstances.
Before the sale, the home owner is given a last chance for another loan called a reinstatement loan. This type of loan brings it current and actually stops the foreclosure from happening. In this case, the home owner needs to be prepared to pay all lenders fees, late fees, and as well as the outstanding balance of the mortgage payments. At times a payment plan may be allowed in this case of a forbearance agreement, and it can all take place in one day.
When none of the above is possible, the Arizona foreclosure takes place. It is called a Trustee Sale, and is sold to the highest bidder. This bidder can even be the mortgage lender. At this time the proceeds pay off the debt, and the home owner has lost the house.
The default period of the mortgage can begin as early as one day late. This is also called the delinquent period. Most Arizona home owners have a trust deed. For this reason there is no reason for the lender to go to court. But they will need to get a trustee appointed.
If you are fortunate enough to have a mortgage lender that is willing to work with you in preventing this foreclosure, or at least delaying it, there are steps to be taken and choices to be made in order to do this.
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.
The second option is a loan modification. That is the re-amortizing of the remaining amount of the mortgage loan, or the balance.
Another thing they can do is to refinance the house. This type of refinancing will wrap in any of the late payments. There is also a line of credit, or second mortgage, which may be another option. And of course, the home owner could always sell the house to get out of the debt.
Then there is the deed in lieu of foreclosure. It is a last resort, and it releases the property owner of all responsibilities of the mortgage, because the deed is simply handed back to the mortgage company. If there is a lien against the property, however, or there is a second mortgage on it, this option is off the table.
A foreclosure can happen quickly, if the lender does not wish to work with the home owner. And the mortgage company will legally obtain the ownership of the house. The home owner will no longer have any rights to the home in question, and he will be evicted.
Ninety days after a Notice of Sale is filed with the Recorders Office, the home will be sold at the set day and time. This is after a delinquent period of from one to one hundred and twenty days, depending on the circumstances.
Before the sale, the home owner is given a last chance for another loan called a reinstatement loan. This type of loan brings it current and actually stops the foreclosure from happening. In this case, the home owner needs to be prepared to pay all lenders fees, late fees, and as well as the outstanding balance of the mortgage payments. At times a payment plan may be allowed in this case of a forbearance agreement, and it can all take place in one day.
When none of the above is possible, the Arizona foreclosure takes place. It is called a Trustee Sale, and is sold to the highest bidder. This bidder can even be the mortgage lender. At this time the proceeds pay off the debt, and the home owner has lost the house.
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