Arizona Foreclosure Options – Summary of What You Can Do To Stop Foreclosure

It may be bothering you that your financial situation is where it is, but much can be said about the fact that it is where it is. Chances are, you didn’t do anything wrong or irresponsible, you just got caught up in a very large turn of events that has resulted in living in a city – Phoenix AZ – that has a financial noose around its housing market.

Even if you have paid your mortgage perfectly and you didn’t get laid off (heck you may even be earning more) you may be looking at a dismal future when it comes to your home’s value and your mortgage balance. This alone can cause you some grief and leave you grappling for some ways to get out of your current situation.

Now let’s address the rest of you reading this post that have had some financial hardships like a loss of a job, or serious cut in pay, or even the death of a household member like a spouse. If you find yourself in this situation there are options for you to investigate which may lead you out of your financial and housing tight spot.

Mortgage Loan Modification – With federal programs like HARP and HAMP, lenders can modify the terms of your current mortgage to either extent the time that you have to pay back your mortgage, lower your interest rate, cut how much you owe or any combination of these to get your mortgage payments flowing again.

Forbearance or Repayment Plan – This option to stop foreclosure allows you to tack on additional money to your monthly payments for a defined period of time to make up what you have fallen behind in missed payments and fees.

Deed in Lieu of Foreclosure – This option must be approved by your lender, but it is when you basically give your lender the keys to your house and you move out. There is no foreclosure procedure, but it could show up on your credit report as a foreclosure.

Rent Your Property – You may be in the position of being able to rent your home out to someone else while you either buy another place or rent a new place. This option isn’t for everyone as you will need to have a mortgage payment that is low enough that what you charge in rent covers your payment or you will have to make up the difference each month.

Bankruptcy – While radical, it is one way to stall but not end the foreclosure process as lenders can get the bankruptcy court to allow the foreclosure process on your home after they have been notified that you have filed for bankruptcy. What is almost for certain is that you will most likely damage your credit while cleaning the slate (so to speak) on your consumer debt.

Short Sale Your Home – You will need to get your lender’s approval for this option, but it is pretty common in the Phoenix market. A short sale is where the lender allows you to sell your home for less than what you owe on it in the event that you can prove that you have had financial hardship. Review the Arizona Short Sale Process and Contact Us to start investigating what option might be right for you.