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In the state of Arizona (AZ), there are 2 types of foreclosures banks use when foreclosing on a homeowner. The first is a non-judicial foreclosure. This foreclosure method is preferred in Arizona simply because it is much faster and easier. Over 90% of lenders use a non-judicial foreclosure in Arizona. With a non-judicial foreclosure, there is less paperwork and legal proceedings required. This reduction translates into a reduced cost and shortened time to foreclose on an Arizona property. A non-judicial foreclosure requires a security document involved called a Deed of Trust.
What is a deed of Trust?
A deed of trust is comparable to a mortgage. When you have a mortgage, you hold legal title to the property you have purchased, but you provide the lender a lien on the property. If you do not pay your mortgage payments, the lender can foreclose on the property.
In Arizona, a deed of trust is used instead of a mortgage. With a deed of trust, you provide the lender a deed to the property but the lender can only sell the property if you break the loan terms.
Furthermore, there is very small difference between these two ways of giving the lender a security interest in the property.
An Arizona Deed of Trust is used to transfer bare title from the borrower to the trustee (Example:Bank). The trustor (neutral third party like a title company) holds the title until the loan is paid off by the borrower.
The second type of foreclosure is called a judicial foreclosure. In this method of foreclosure, the process is much longer and involves a lot more of legal and judicial proceedings. These instances are much rarer in Arizona, but can ultimately happen.
There are certain ways to stop foreclosure in Arizona. In the perfect world, you would not miss any of your mortgage payments and completely avoid foreclosure in Arizona.
In order to stop foreclosure in Arizona, one should contact a professional to explain the legal ramifications involved with a foreclosure. At Diamond Loan Modifications, we specialize in helping consumers STOP FORECLOSURE IN ARIZONA. We are an Arizona based company that helps educate consumers and explains different rights you have in the foreclosure process. This is a free no-obligation process that helps determine if you can sued civilly in court if have a foreclosure.
In order to stop foreclosure in Arizona, one should consider a plan of action with your Loan Modification representative from Diamondback Loan Modifications. This way, you can get free advice to help you with your situation. A loan modification negotiator can begin to stop foreclosure in Arizona by negotiating with your lender for additional time to work out a payment plan. This will allow us time to explain your financial hardship and negotiate for an Arizona Loan Modification. If a loan modification is not an option, we can negotiate with the lender for a short sale. An Arizona short sale is when the lender allows a property to be sold for less than the amount owed on a mortgage and takes a loss. This may be extremely beneficial for you because if the lender loses money on the sale of your home, you will not have to worry about the lender suing you in court. Regardless, if you want to keep your home an AZ loan modification is what I would recommend to STOP FORECLOSURE IN ARIZONA.
We are also often asked if filing bankruptcy is a good option to stop foreclosure in Arizona.
We always advise everyone to try all other resorts before you can file for bankruptcy. This really should be your last option. Once you file for bankruptcy, the foreclosure will be pushed aside for sometime. However, this will hurt your credit rating.
At Diamondback Loan Modifications, we can help you stop foreclosure and provide you with needed assistance in loan modification to stop foreclosure in Arizona.
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