5 Actions to Take If You Receive a Foreclosure Notice in Phoenix, AZ

Foreclosure Notice Concept with Model House and KeysA foreclosure notice can be panic-inducing for any homeowner, but receiving a notice doesn’t necessarily mean that you have to lose the equity in your home. Options, such as refinancing your mortgage, are available to help you avoid foreclosure. Whether you decide to keep your home or sell the home to retain your equity, taking immediate action is the best way to protect your investment.

Don’t ignore the foreclosure notice. Taking prompt action is the best way to handle a foreclosure notice. Unfortunately, the foreclosures experience can occur in a very short period, making it essential for Arizona homeowners to take quick action if you want to prevent losing the equity you have invested in your home.

Contacting your lender immediately can work in your favor, even if you can’t pay the past due mortgage payments right away. They may even have some alternatives that can help you keep your home longer. It also pays to look into foreclosure help programs available to Phoenix-area residents.

Find out exact details. Call your lender immediately after receiving a foreclosure notice to find out exactly how long you have to make past due payments. You should also ask your lender which payment methods are preferred. For instance, some lenders prefer past due payments in a single lump sum payment, while others are more flexible and allow several smaller payments over a specific period of time. You should also learn about the foreclosure laws in your state. Foreclosures in Phoenix, for example, typically occur over a 90-day period of time and don’t require a court order to be executed.

Compromise. Your lender can outline your options if you have received a foreclosure notice. Some common options include refinancing your mortgage and reducing your monthly payments to reflect significant changes in your income. If you have a financial hardship, explain the situation to your lender. Hardships include situations such as layoff or termination and being unable to work because of an illness. Most lenders are willing to help you find a solution to prevent foreclosure.

Avoid fraudulent mortgage consultants. The process of foreclosures that some Phoenix residents experience can seem overwhelming because homeowners may have as little as 10 days to pay any past-due payments. Although the process can occur quickly, it is vital to choose a reputable mortgage consultant. Consider talking to a real estate lawyer if you believe fraudulent activities are interfering with your rights as a mortgage holder. If you doubt your ability to pay the past due amounts within the required amount of time, a short sale may be your best option to retain the equity you have invested in your home.

Sell your home so you can keep the equity. Ideally, you should begin the process of selling your home as soon as you know that you can’t pay your monthly mortgage payments. While it may not seem like it, this helps you save the equity in your home even after the foreclosure process begins. First, get a current appraisal, and approach your mortgage holder with the appraisal. You should typically wait for your lender to approve the sale before proceeding. After selling the home with your lender’s approval, the remaining mortgage is repaid, and if applicable, all remaining funds are yours to keep for your next place to live.

All Homes AZ can help you sell your home quickly to prevent a foreclosure and allow you to retain the equity in your home. We are available 24 hours a day, seven days a week at 480-725-7063. Send a call, text, or submit your information online if you want to learn more about the services we offer to help you prevent a foreclosure.

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