Foreclosures are not a sudden event; before the lender implements the final procedure there is a lot of warning. The worst thing you could do when regarding these financial issues is hide from your problems. Instead, it is always better to face your problems head-on and make the best choice by going in depth and understanding your available options. The time to take action is when you receive the first notification. Otherwise, the consequences of your failure to act are vast and heavy.
Not only will you be evicted from the property at a moment’s notice, which is in itself a stressful way to live day-to-day, you will also lose any equity in the home. Regrettably, you could still be on the hook for any remaining debt on the mortgage as well. As for the damage to your credit, the misery of foreclosure simply does not end there; it reaches beyond your credit history and could harm your employment opportunities. A foreclosure can also have adverse effects on your housing options, and you won’t be able to qualify for a Fannie Mae mortgage for at least seven years. Foreclosure can be devastating to your quality of life even long after your eviction.
Continue reading as we explore five ways you can stop foreclosure in AZ.
If there is still enough time, negotiating with the lender before proceedings begin is one way to stop foreclosure in AZ. Your lender may be more open to negotiating with you than you may believe. As foreclosures can take years to finalize, an average of around 830 days, lenders have a great deal of leeway in giving leniency to borrowers to reorganize their finances and overcome temporary setbacks when possible. There are also programs in place that you may qualify for that could offer assistance in times of hardship.
If you have defaulted on your mortgage loan, a short sale is another way you can stop foreclosure in AZ. With the lender’s approval, the home is sold at current market value, even if that is far below the amount still owed on the mortgage. However, a short sale is impactful on your credit score, and you may not have the immediate ability to attain another mortgage. You may also need to consult your tax professional, as second mortgages for uses other than home improvement may now be considered taxable income.
Filing for a chapter 13 bankruptcy may be a way you can stop foreclosure in AZ. For example, suppose you have overcome the circumstances that interrupted your income stream, and you’re now able to arrange a chapter 13. In that case, you will be restructuring your debt, making your regular mortgage payments along with payments on the arrearage, typically for a period of up to five years. Chapter 7, on the other hand, will give you a little breather while you stall payments temporarily and play catch up.
Deed In Lieu
Signing the mortgage back over to the lender and walking away, known as a deed in lieu, is another way you can stop foreclosure in AZ, satisfying the loan. However, you should know that junior liens, such as equity loans attached to the property through the deed, are undesirable to the lender and may stop you from taking this route. In this scenario, foreclosure is better for the lender because it will get rid of those existing debts. A lender will not act upon this option without your reaching out in writing and stating to the lender that you’re making this offer voluntarily.
Valley Home Buyer
Selling your home directly to Valley Home Buyer could very well be the best way you can stop foreclosure in AZ. It is important that whatever action you intend to take is taken hastely to avoid paying the heavy penalties associated with a foreclosure for years to come, and Valley Home Buyer is poised to step in and help you immediately. We will provide you with a guaranteed closing date, often in a matter of a few weeks or less. If you are not ready to move, we are happy to arrange a leaseback at fair terms; the direct buyers at Valley Home Buyer will work with you to help make the transition as smooth as possible for you and your family. Selling directly to Valley Home Buyer is a quick and easy process; you avoid paying high real estate commissions, the expenses of listing and marketing the property, the hassles of showings, and there is no need to worry about making any repairs.
A direct buyer from Valley Home Buyer will lay out all of the numbers for you because our goal is to be certain you are comfortable with our offer and that you truly believe it’s fair. We do this at Valley Home Buyer because we want you to feel good about the deal long after closing. Why not see how much Valley Home Buyer will pay for your house right now, as-is for cash? Contact Valley Home Buyer today at 602-734-3662. phone].