Foreclosure prevention measures in AZ for homeowners facing financial challenges may help prevent foreclosure. If you would like information on how to avoid foreclosure in Arizona, please read on.
Foreclosure occurs when the mortgage loan isn’t repaid, and the bank begins the process of taking ownership of the property to recoup its losses.
If you find yourself entering the foreclosure process, you might wonder if there is anything you can do about it.
In this blog post, you’ll read about a few ways to avoid foreclosure in AZ that you can take to keep your home from foreclosure.
Foreclosure prevention measures in AZ
These foreclosure prevention measures might not all work in your situation, but we’re telling you about them so you can make the decision for yourself:
1. Pay off your mortgage / sell your property. The quickest and easiest way to end the foreclosure process is to pay off your mortgage. After all, this is all the banks wanted in the first place, so they would be happy to let you stay in your home, and they get their money back. Admittedly, this is not always possible, which is perhaps why you’re in foreclosure in the first place.
2. Work out a deal with your bank. Sometimes you can work out a deal with your bank by sitting down with a mortgage or foreclosure specialist to discuss changing the structure of your mortgage. Your payments may be spread out so they are lower each month. Make sure the deal works for you, and don’t want to repeat the process.
3. Do a short sale. A short sale is when you sell the property and use the proceeds of the sale to pay down or pay off your outstanding amount with the bank. This keeps a foreclosure from impacting your credit score and it gets the bank off your back!
4. Give your deed in lieu. Another option would be a deed-in-lieu-of-foreclosure, which basically means that you will hand over the deed to your house to the bank and they agree not to put you through foreclosure. This will often only work if your house is worth approximately the amount owing on the mortgage. If not, the bank may pursue the difference.
5. File for bankruptcy. In some ways, a bankruptcy is far more dramatic than a foreclosure because it impacts your whole life. However, once you file for bankruptcy, the foreclosure process has to stop so it’s still a foreclosure prevention measure.
If you’re not sure which one to do, consider this: If you can afford payments and you want to stay in the house then a foreclosure workout arrangement (#2) is probably your best option.
If you want to put everything behind you and move on with your life then consider selling your home and paying off your mortgage with that money.
Considering selling your AZ house?
We buy houses in AZ for cash and would love to see if we can help you during your short sale. Contact us by filling out the form on this page and we’ll see if we can work with you.