Home foreclosures happen for a lot of reasons, and no matter how they occur, the homeowner wants nothing more than to make it stop. While the Phoenix AZ foreclosure rate has lowered dramatically from the historic highs of the recession, they are on the rise. However, there are ways to stop foreclosure and possibly keep your home.
First-do not panic. Financial scammers live for panicking homeowners facing foreclosure as it makes their jobs easier. Arizona, hit so hard by the foreclosure crisis and subsequent fraud in the recession, has copious legitimate information available on how to stop foreclosures, as do federal agencies. However, facing foreclosure proceedings by yourself can be nerve-wracking when done as a pro se – meaning that you represent yourself in the proceedings without licensed lawyer.
Start as Soon as There is a Problem!
Foreclosures are procedures that mortgage lenders really want to avoid; they are expensive! Numerous lenders have ways to work with homeowners that will help keep them in their home. Armed with your loan account number, a summary of your financial situation, a list of expenses, and documentation of income, call your lenderand explain your circumstances, then ask what help is available to you.
Your options for staying in your home may be one or more of the following:
- Reinstatement: Pay a lump sum to the lender by a certain date.
- Forbearance: The lender may reduce or suspend payments after which you will be required to bring your loan current.
- Repayment Plan: Resume regular monthly payments with an agreed amount added to each payment until the account is current.
- Mortgage Modification: This option is a permanent revision of the mortgage agreement when the problem is not a short-term issue that can be handled by the first three options. The lender may add the missed payments to the loan balance, change the interest rate, or extend the term of the loan while lowering the payments.
- Claim Advance: With an insured mortgage, you may be able to get an interest-free loan from the guarantor with a delay on repayment for one or two years.
One caveat, even if you are in the middle of a loan modification, there is no requirement for, nor do mortgage lenders stop foreclosure proceedings. It is therefore important to contact an experienced attorney to go over your options in keeping your home in that event the lender denies your application. It is common that the modification process is often denied before it can eventually be approved. During the window that the modification has been denied, the mortgage lender can foreclose on your home. You must be prepared for such a contingency.
Get Good Advice
If you have fallen further behind in payments than you are able to catch up on, or you are not sure about the documents your lender wants you to sign, getting help from Phoenix AZ foreclosures lawyers is a must. Larry P. Karandreas can help you through the stress of foreclosure.