Arizona foreclosure relief solutions
REINSTATE YOUR LOAN
The most obvious option is to pay your past due balance, and make your loan current. If the foreclosure proceedings have already been filed then the amount needed to get the loan current will not only include back payments, but also late charges and attorney fees. This is the quickest and most efficient way of stopping the foreclosure.
FORBEARANCE
A mortgage forbearance agreement is an agreement made between a mortgage lender and a delinquent borrower. In this agreement, a lender agrees not to exercise its legal right to foreclose on a mortgage, and the borrower agrees to a plan that will bring the account current over a reasonable period of time. If you are already in a foreclosure, forbearance is most likely not something your lender will agree to.
LOAN MODIFICATION
A loan modification could stop the foreclosure by negotiation with the lender to modify the terms of your loan, and may include adjusting the interest rate, extending the loan period, or adding the delinquent portion back onto the principal balance of the loan to be repaid over time. If you are already in a foreclosure, you may not have the time it requires to get a loan modification approved by your lender.
MORTGAGE REFINANCING
In most cases, once foreclosure has started, you have been through several months of late payments or no payments. These late payments have a devastating effect on your credit rating, which in most cases will lead to a denial of the refinance loan application. If you are approved it will probably be at a VERY high interest rate with high closing costs. If you are seriously considering this option then call 602-706-7065. We have connections with companies that could help you. Remember that time is of the essence so don’t waste valuable time on this option or you could lose your home while waiting on loan approvals.
SALE OF THE PROPERTY
If you have been unable to work with your lender, or find another suitable solution in a TIMELY manner, it is time to seriously consider selling. When time is of the essence you should consider selling your property to an investor who offers FAST closing. Typically, this will be less than market value, but can be a benefit to you because it is an “as is” sale, which means you won't have to spend money on repairs, or spend time putting the house in sellable condition. And there will be no commissions, fees, or closing costs. By selling your house “as is”, you get a quick sale which allowing you to instantly stop the foreclosure and salvage your credit.
DEED IN LIEU OF FORECLOSURE
this means you voluntarily deed the title to your property to the lender. You basically give the house back to the bank. The ordinary effect of the taking of a Deed in Lieu is to extinguish the lender’s deed of trust and vest the lender with title subject to all other existing liens and encumbrances. In effect, the lender becomes the new owner. The lender is not required to accept the Deed in Lieu and can show his/her refusal by filing a Notice of Non Acceptance with the County Recorder. In our opinion this is a bad choice because if you have equity in the property you would be forfeiting all of that equity. Before you decide to move forward with a Deed In Lieu call 602-706-7065 so we can help you make the best decision for your situation.
BANKRUPTCY
Some homeowners act on their lawyer’s advice and file bankruptcy thinking that all their problems are now solved. Bankruptcy does put a hold on everything, yes, but all it buys you is a little time. The end result is almost always the property still goes to auction and you now have a bankruptcy in addition to the foreclosure on your credit report.
NOTHING
You may find it odd that nothing is listed as an option; however one of the most common options taken by homeowners is NOTHING. Don’t fall into the trap of thinking that everything will magically work itself out, because it will not. You are likely confused by your options and fearful of making a bad decision, but by doing nothing you are making a very bad decision. The decision you are making by doing nothing is the decision to turn a blind eye to reality which will most likely lead to losing your home.