STOP FORECLOSURE, ARIZONA.  FREQUENTLY ASKED FORECLOSURE QUESTIONS!

1. What is foreclosure?

The legal process that banks and mortgage companies use to force the sale of your home to repay a debt; usually the mortgage on your home. Even if one payment is missed the lending institution can take the property back and then sell it to repay the money owed them. A foreclosure notice is typically filed after three or four payments are missed.

2. What is the foreclosure process and how long does it take?

Each state governs the foreclosure process differently. As a minimum, the law requires that the borrower receive sufficient warning or notice before the foreclosure can take place. Other rights and responsibilities may be outlined in the mortgage or loan documents you signed when you purchased the home.  In Arizona, the foreclosure process typically takes 6-9 months depending on when your lender files the Notice of Default (NOD).  The NOD is a public document your lender files that begins the foreclosure process.  From the day the NOD is filed, you have exactly 91 days until the actual auction occurs.

3. Do I have any options and if so, how much time do I have to exercise my options?

You have several options available to you as long as you own your home. Once your house is sold, whether by you or through foreclosure, many of your options disappear.

Knowing what your options are puts you in a much stronger position to deal effectively with the foreclosure process. Armed with the right information, you may be able to save your home from foreclosure an d, in some instances, avoid the foreclosure process altogether.

4. I get letters and notices from people claiming they can help me save my home - are they for real?

When Arizona Foreclosure documents are filed they become a matter of public record and many people review these records for various purposes such as compiling lists to sell to bankruptcy attorneys, investors, real estate professionals and other people interested in either purchasing your home or . . . helping you save it.

Some of these offers are probably legitimate but, none of them have your best interest at heart. Never forget that these offers come from people who are in the business of making a profit from your foreclosure situation!   With this being said, there are companies out there that can help you stop the foreclosure auction, help save your credit, make a small profit, and act honestly and ethically on your behalf.  Sell Quick For Cash is one such company.  The take great pride in their honest and ethical business practices, and have many referrals to choose from!  Plus, they are a member of the BBB and in good standing!

5. So, how can I keep my home?

The best place to start is to familiarize yourself with your state foreclosure process, forbearance and other options available to you, and then, contact your lending institution to discuss your options.

If your lender is unwilling to work with you then we highly recommend hiring a 3rd Party Arizona Foreclosure Specialist. These are experts who know the laws in your state and can quickly convince your lender to work out a repayment plan to save your home.  www.SellQuickForCash.com is one such specialist.

6. I would rather sell my home than lose it to foreclosure . . . is this possible?

Yes! It's called the Compromise Sale and a foreclosure notice does not prohibit you from selling your home as long as you own it. However, you must act quickly and select the right real estate professional, one well versed in these types of sales.  Contacting an investor or investment company such as Sell Quick For Cash is a good idea if you want to sell your Arizona house fast.  Our home buying professionals can make you an all cash offer on your home within hours!  Call 602-626-3598 to Sell Your Arizona House Fast.

7. I don't want to keep the house nor bother with trying to sell it. What would happen if I just walked away?

There is a legal process for walking away from your home or forfeiting your property. You should seek the advice of an attorney and a real estate professional well versed in this area because you could face catastrophic tax and credit consequences if you just walk away.  Call 602-626-3598 to speak with an Arizona Foreclosure Expert!

8. What happens when the bank forecloses?

While the actual process may vary from state to state, typically a trustee is appointed and announces the sale by auction of your home by informing the public. The usual announcement includes the name of the lending institution, who the borrower(s) is/are, the amount of overdue debt, and your total indebtedness.

After a specific period of time, the trustee opens the bidding process, (in some states your lending institution may do this). Then, either someone purchases the property or it reverts back to the lending institution. Once the property is sold or reverts back to the lender, the eviction process begins!

9. What does "Short Payoff" or “Arizona Short Sale” mean?

Your lender agrees to accept less than the total amount owed in exchange for releasing the mortgage as a lien on the property. You can do a short sale even if you have two mortgages from two different lenders.  (It’s also called pre-foreclosure sale, short sale, pre-sale and compromise sale).

WARNING! There may be serious tax consequences especially if it is not your primary residence!  Sell Quick For Cash specializes in Loss Mitigation work and can help you conduct a Short Sale or a Loan Modification on your house.

10. Can they sell my house for less than what I owe?

Yes! Banks are not in the business of owning or selling homes and they do not like to foreclose on property because it's expensive and they usually lose money. They must prepare the home for sale, hire a real estate agent to sell it, and until it's sold, it remains a non-producing asset on their books. The lending institution would rather take a loss on the home than have it remain on their books as a non-producing asset. (see next question on profit)

11. They sold my house for more than I owe, do I get any money?

Yes! Any amount over the total debt owed will be paid to you upon the transfer of ownership (closing).

However, if they sell it for less, the balance is called a deficiency and your bank can use whatever means they deem necessary to collect the outstanding balance. Most states treat this as an unsecured debt (just like credit card debt) and give the bank (or creditor) the same legal rights to pursue you, usually by suing you in court.  Arizona is an Anti-Deficiency state and you should contact an attorney to see if you qualify for these laws protections!

12. Who can bid on my home at the auction?

Anyone, including yourself can bid at the auction. However, some states require a cashier’s check in the amount of the purchase price or bid, some states require a deposit and the ability to fund within a specified period of time as required under the terms of the contract.

13. What happens if no one bids on my property?

The bank simply takes possession of your property, through eviction if necessary, and then hires a real estate agent to sell the property.

14. How does a Sheriff's Sale work?

If you fail to pay your property taxes the city to whom the taxes are due can foreclose through a Sheriffs Sale. Some cities will use this option after one year of non paid taxes while other cities may wait 3 years or more. Additionally, any creditor or lien holder can use this option once you default on a loan. However, any overdue taxes are paid first, then first, second, etc. mortgages are paid before any other liens or judgments can be paid.

15. If I'm evicted, how many days notice do I get?

Typically you'll get 3 days notice! Most banks will start the eviction process immediately after the foreclosure process but the FHA, HUD and VA are usually much slower. If you own rental property, your tenants will normally be given 30 days notice. If you need more time than given, contact your lending institution immediately to ask for an extension.  Ask about your lender(s) “Cash For Keys” program.  Your bank may be willing to pay your to leave your house in a good condition!

16. Do I really stand a chance of saving my home from foreclosure?

Yes! If you’re willing to fight for it! Knowing and understanding what options are available to you is the first step. Call SellQuickForCash.com to speak with one of our Arizona Foreclosure Advocates and get real advice that could save your home!  602-626-3598.

Your success depends on you implementing the proper option in a timely manner.

17. I've missed a few mortgage payments, now what happens?

Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home.

When the actual foreclosure happens you must move or you'll be evicted anyway. Also, you may still owe the lender if they sell the house for less than you owe. You do have several options but because foreclosure or a deficiency judgment could seriously affect your ability to qualify for credit in the future, you should avoid foreclosure it if all possible!

18. I received a foreclosure notice, what should I do?
 

Contact your lender immediately; explain your situation and why you are having trouble making your payments. Provide them with your monthly income and expenses . . . be honest! Do not ignore the letter!

Do not move out of your home! If you do, it may be considered abandoned and cause you to not qualify for assistance.

Contact a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 or go online for the housing counseling agency nearest you. These services are usually free of charge.

If you bought your home with a Veterans Administration (VA) guaranteed loan, see Veterans Services for more information or call the VA office nearest you.

IF NONE OF THESE SOLUITIONS WORK, CALL SELLQUICKFORCASH.COM AT 602-626-3598.  WE CAN HELP YOU STOP YOUR ARIZONA FORECLOSURE FAST.

19. What options do I have once I've received a foreclosure notice?

The most popular options are:

Special Forbearance

Your lender may be able to arrange a repayment plan based on your financial situation. Your lender may even provide for a temporary reduction or suspension of your payments. You may qualify for this if:

·         You have recently lost your job or source of income or;

·         You had an unexpected increase in living expenses.

·         You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Mortgage Loan Modification

A Loan Modification is a modification to an existing loan made by a lender in response to a borrower's long-term inability to repay the loan. Loan modifications typically involve a reduction in the interest rate on the loan, an extension of the length of the term of the loan, a different type of loan or any combination of the three. A lender might be open to modifying a loan because the cost of doing so is less than the cost of default.  DO NOT PAY A LOAN MODIFICATION COMPANY WITHOUT FIRST READING OUR DO-IT-YOURSELF LOAN MODIFICATION KIT.

Partial Claim

Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current.

     You may qualify if:

·         Your loan is at least 4 months delinquent but no more than 12 months delinquent;

·         Your mortgage is not in foreclosure; and

·         You are able to begin making full mortgage payments.

·         When your lender files a Partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a promissory note, and a Lien will be placed on your property until the promissory note is paid in full. The promissory note is interest-free and will be due if you sell or leave your property, or when your mortgage matures.

Pre-Foreclosure Sale

This will allow you to sell your property and pay off your mortgage loan to avoid foreclosure and damage to your credit rating.

 Obviously time is of the essence when facing a foreclosure auction so dealing with an investor or investment company can be beneficial.  Typically they can pay cash for your house and close quickly.

Deed-In-Lieu Of Foreclosure

As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it will help your chances of getting another mortgage loan in the future.

     You can qualify if:

·         You are in default and don't qualify for any of the other options;

·         Your attempts at selling the house before foreclosure were unsuccessful; and

·         You don't have another FHA mortgage in default.

Bankruptcy

Contact a bankruptcy attorney for information about this option.

20. How do I know if I qualify for any foreclosure alternatives?

A housing counseling agency can help you determine which, if any, of these options may meet your needs. You should also discuss the situation with your lender.

21. What about foreclosure scams

You can usually spot a scam because it sounds too simple or too good to be true.

If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty.

     Be especially alert for the following:

Equity Skimming: In this type of scam, a "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember that signing over your deed to someone else does not necessarily relieve you of your obligation on your loan. See Question 22; Avoiding Scams

Phony Counseling Agencies: Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. Most of the time these services are things you can do such negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale.

If you have any doubt about paying for such services call a HUD-approved housing counseling agency. Do this before you pay anyone or sign anything

22. How can I avoid foreclosure scams?

Follow these precautions:

Don't sign any papers you don't fully understand.

Make sure you get all "promises" in writing.

Beware of any loan assumption where you are not formally released from liability for your mortgage debt and contracts of sale.

Check with an attorney and a real estate professional or your lender before entering into any deal involving your home.

If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information.

Use a company like SellQuickForCash.com that has many referrals and is a member of the BBB in good standing!

23. So, what are the main points I should know about Foreclosure?

Don't lose your home and damage your credit history if you can help it.

Call or write your mortgage lender immediately.

Stay in your home to make sure you qualify for assistance.

Arrange an appointment with a HUD-approved housing counselor to explore your options.

Cooperate with the counselor or lender trying to help you.

Explore every alternative to losing your home.

Beware of scams.

Do not sign anything you don't understand.

Remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation.

Act now. Delaying can't help. If you do nothing, you will lose your home and your good credit rating.

Call 602-626-3598 (SellQuickForCash.com) Now.

24. Can the bank just kick me out of my house?

No. Only a court order, called eviction, can force you to leave your home. The lender must file a foreclosure notice first, and then, only after the foreclosure process is complete, can the bank start eviction proceedings.

25. What is the actual foreclosure process?

It's a two-step process: pre-foreclosure and formal foreclosure. The process is basically the same for every state.

Pre-Foreclosure

You miss a payment (it usually takes 3 or 4 missed payments to kick off a foreclosure process)

The bank sends you late notices and, if you fail to respond, they attempt to contact you (in writing or by phone) to resolve situation.

You continue to miss payments and, you and the bank, fail to agree upon payment arrangements.

The bank invokes the acceleration clause and demands the mortgage or lien be paid in full. Now you are legally obligated to immediately pay the full amount plus back interest, late fees, and any legal fees incurred by the lender.

You have made no payments or arrangements acceptable to the bank.

Note: Once you reach this stage, the bank will not accept your regular monthly payments but will instead, demand much higher payments to bring your loan current.

Formal Foreclosure Process

You receive a formal foreclosure notice, either by certified mail, or in many states, by the local sheriff.

The lender begins foreclosure action in court.

Legal notices are published in local papers.

You still have not been able to reach a payment or settlement arrangement with the lender.

Your notice and waiting periods expire.

The court holds a hearing regarding the bank's claim.

The court issues a foreclosure order. This gives the bank the legal right to sell the home.

Legal notice of actual foreclosure sale and advertisements published in local papers.

You still have not been able to reach a payment or settlement agreement with the lender.

The house is sold at auction to the highest bidder or not sold and the bank takes possession of the home.

You move out or the bank or new owner evicts you.

You are notified of any debt still outstanding as a result of the sale. (i.e. the home is sold for less than you owe)
 

26. How long does the Arizona foreclosure process usually take?

In Arizona, the average time it takes to foreclose on a property is 6-8 months.

27. What actually happens during an eviction?

This varies by state but generally it follows one of two paths . . .

     First path:

You receive a notice to vacate the premises within 72 hours.

You leave within the time limit.

     Second path:

You receive a notice to vacate the premises within 72 hours.

You fail to leave

The bank or new owner goes to court to ask for a hearing to decide if and when you should be evicted.

At the hearing the judge decides whether or not you should be evicted and if evicted, how long you can stay before moving out. (Offering to pay rent will often sway the judge to grant you more time)

If the judge decides you are to be evicted, most states allow you 10 days to appeal the decision.

Once the court orders your eviction and you have not moved out by the court designated date, the bank or new owner may obtain an execution of the eviction judgment which gives the sheriff the right to physically remove you from the premises.

The sheriff gives you between 24 to 72 hours (depending on your state) notice to move.

You still refuse to move so, the sheriff physically moves you. (resist now and you face being arrested)

Anything left in the house is packed and moved into storage. (to get your stuff back you'll have to pay the storage fees and any additional associated fees)

The locks on your former home are changed.

28. How long does the eviction process take?

The national average is 8 weeks from the day you are given the eviction notice until a sheriff shows up to move you. It could take six months or more but . . . be prepared because it could be as soon as a week!

29. How many people actually lose their home to foreclosure?

About 20% to 35% are unable to save their homes! Most people either refinance (impossible to do if you have little or no equity) or file a Chapter 13 Bankruptcy. About 30% are able to reinstate their existing mortgage.

30. What is the Soldiers and Sailors Act?

This was an law passed during World War II to protect active duty military members from financial difficulty. One portion of the law may be able to stop foreclosure for anyone on active duty if they meet certain requirements outlined in the Soldiers and Sailors Act.

31. Who gets the money when the house is sold at auction?

First, all real estate taxes are paid. Then first, second, third etc., mortgages are paid. Next comes any lien holders or attaching creditors. Finally, you'll get any money left over after all debts are satisfied.

32. What does merged debts mean?

This applies only if you have a second, third, or more mortgages! If the lender holding your first mortgage forecloses then the second, third and so forth lenders no longer hold any right or title to your home. Although, you will probably still owe them money, they have no security interest in the home nor any right to foreclose on the home.

However, if you buy your own home back at the foreclosure auction, the debt may "merge" back (reattach) to the property, as if the foreclosure never happened.

Note: If you file chapter 7 bankruptcy prior to the foreclosure sale and receive a discharge (released from all debts) you will not owe any money and the lenders will no longer hold a security interest in your home.

33. What is the redemption period for buying my house back?

This varies by state. Many do not have a redemption period except when your house is sold at a sheriff's sale or for back real estate taxes. See State Foreclosure Process for redemption periods.

34. What's the difference between a foreclosure and a sheriff's sale?

Foreclosure sales are auctions held by the mortgage holder while a sheriff's sale is held by a lien holder or attaching creditor.

About SellQuickForCash.com

Sell Quick For Cash (SellQuickForCash.com) is Arizona’s Premier Cash For Houses website specializing in creating custom solutions to Arizona’s housing problem.  We pay cash for houses whether they are nice or ugly.  We buy houses as-is, with no Realtor fees or hassles!  Plus, we are Arizona Foreclosure Experts.  We understand every aspect of Arizona’s Foreclosure Process, and happen to be experts in Arizona Short Sales and Arizona Loan Modifications as well!  When you are trying to sell your house fast in Arizona, you can count on the professionals at www.SellQuickForCash.com.

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