Stop Foreclosure in Arizona


Stop Foreclosure in Arizona

More and more homes in the US are faced with the problems of foreclosure because of the current economic crisis. This is because more and more people find themselves in debt because of their low income and cannot anymore sustain the money that they use to spend for paying the home that they have been investing in. One of the states that have been experiencing this kind of problem is Arizona.

There are several ways on how Judicial foreclosure can be prevented in Arizona. For one, it is best to consider checking out the Home Protection Pilot Program. This program has taken into effect since 2004 that is aimed at helping owners prevent themselves from experiencing foreclosure due to job loss. This program offers 0% interest rate and loans up to $20,000. The repayment of the loan can be deferred to up to 15 years too.

The next thing you can do is to contact legal aid. There are free legal aids to seek advice from on how to handle foreclosure. There are probono attorneys that can give good and sufficient advices as to what can be done when experiencing foreclosure.

The other thing you can do is to call the HOPE hotline. Financial volunteers here are very much available to help and answer questions when it comes to foreclosure and other related matters free of charge.

You can find a Defense Project that you can coordinate with. They on the one hand can connect you with people in your area or state that may be able and willing to help you in this kind of situation.

In the end, these options are made readily available to you so that you would be able to make the most out of your purchases and in the end would allow you to simply live in the home that you have been paying for.

Synopsis of Arizona Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 90 days

Right of Redemption: None

Deficiency Judgments Allowed: Varies

In Arizona, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

The trustee must record a notice of sale in the office of the recorder of the county where the property is located. Within five (5) days after the notice is recorded, the trustee must mail, by certified mail, a copy of the notice of sale to each of the people who are parties to the trust deed, except for himself. Additionally, the notice must appear in a newspaper in the county where the property is located once a week for four (4) consecutive weeks, with the last notice being published not less than ten (10) days prior to the date of the sale.

Optionally, if it can be done without a breach of the peace, the trustee can post the notice at least twenty (20) days prior to the date of the sale, in some conspicuous place on the property to be sold and/or he or she can post the notice at the courthouse or at a specified place at the place of business of the trustee in the county in which the property is located.

The trustee or the trustee’s agent must conduct the sale. The sale is for cash to the highest bidder, except that the lender can make a “credit bid,” which means to cancel out some part (or all) of the money the borrower owed the lender on the lean, instead of paying cash. A successful high bidder must pay the bid price by 5 pm of the day after the bid, other than a Saturday or legal holiday. Every bid is an irrevocable offer until the sale is completed, which happens when the bidder pays the bid price to the trustee’s satisfaction. If the high bidder fails to make the payment by 5:00 pm, the day after being notified of the option to buy, then the trustee may postpone the sale.

The trustee may postpone the sale to another time, or another place, by giving notice of the new date, time and place by public declaration at the last place and time the property was offered for sale. No other notice is required. A trustee may also, by written agreement, extend the time for a buyer to come up with the payment.

Once the sale is complete, the proceeds will go to the payment of the obligations secured by the deed of trust that was foreclosed, then to junior lien holders in order of their priority. The successful bidder gets a trustee’s deed, which provides conclusive evidence that the trustee conducted the foreclosure sale property.

A note regarding Deficiency Suits: A lender may not bring a deficiency suit against a person who lost a property that is 2.5 acres or less at a foreclosure, provided the property was a single one-family or a single two-family dwelling. This is so even if the high bid at foreclosure was less that the balance due on the loan. However, in foreclosures against other types of property, a deficiency suit is allowed, but is limited to the difference between the balance owed and the fair market value of the property, and then only if the suit is brought within ninety (90) days of the power of sale foreclosure.

Where to go to for Foreclosure Help

Phoenix Field Office

Dept. of Housing and Urban Development
One North Central Avenue, Suite 600
Phoenix, AZ 85004

Phone: (602) 379-7100
Fax: (602) 379-3985
TTY: (602) 379-7181

Jurisdiction: Arizona area from Casa Grande North

Rebecca Flanagan
Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Tucson Field Office

Dept. of Housing and Urban Development
160 North Stone Avenue
Tucson, AZ 85701

Phone: (520) 670-6000
Fax: (520) 670-6207

Jurisdiction: Arizona area South of Casa Grande

Rebecca Flanagan
Acting Field Office Director

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Stop Foreclosure Early

Legacy Home Mortgage
4040 East Camelback Road,#200
Phoenix, AZ

Gold Coast Mortgage Group
(520) 299-3745
5580 N Suncrest Place
Tucson, AZ

American Life Financial
480 835 5001
935 E. Main Street
Mesa, AZ

Sun American Mortgage
4140 E. Baseline Rd.
Mesa, AZ

National Lender
3005 S.47 Th. Ave
yuma, AZ

Quicken Loans
(866) 602-1549
4200 E Zuni Way
Rimrock, AZ

Nova Home Loans
8800 East Raintree Dr. Ste 180
Scottsdale, AZ

GS Capital Lending
633 E. Ray Road Ste #135
Gilbert, AZ

River Valley Mortgage
157 Paseo del Sol Ave
Lake Havasu City, AZ

4110 N. Scottsdale Road
Scottsdale, AZ