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Foreclosure Attorney in Phoenix
Frequently Asked Questions
Options for Arizonans facing foreclosure
It is estimated that some 200,000 Arizona families are believed to be behind on their mortgages and more than 50,000 lost their homes in 2010. And while many banks have placed a temporary moratorium on foreclosures, they are simply delaying the inevitable.
Why are so many Arizonans unable to get loan modifications? Loss of equity is at the heart of the issue. During the real estate boom in the first part of this decade, homebuyers were tempted to extend themselves when buying homes with low introductory interest rates and interest-only loans, under the belief that their income would continue to increase and real estate prices would continue to grow (positive equity). Unfortunately, that didn’t happen.
So what can you do if you are underwater with your mortgage and falling behind on payments? Here are some options:
Negotiate a short sale. If you owe substantially more than what your home is now worth, you may be able to get the lender to accept less by negotiating a “short sale.” You essentially sell for whatever you can get on the market and the lender agrees to accept those proceeds. A skilled negotiator will be able to help you avoid financial consequences of a short sale (such as deficiency penalties) or at least minimize them, so once you understand all the potential risks, you’ll want to get an experienced professional to help with the sale.
Allow the foreclosure to proceed. For some, allowing the foreclosure to proceed is the best long-term financial strategy, particularly if you are severely underwater with your mortgage. See this article for more information about credit recovery after a foreclosure.
Bankruptcy. Filing for bankruptcy will usually stop the foreclosure process temporarily, but your lender will eventually ask the trustee to release the property so they can continue with the foreclosure. If you have significant other debt, bankruptcy might be your best option. Once the property has been released from the bankruptcy the foreclosure process starts right where it left off, but the bankruptcy process essentially wipes out debt and allows you to start over. There are different types of bankruptcy and it is a legally complex process, so contact an experienced bankruptcy attorney to handle your case.
Seek professional help. As you can see there are a number of available options for homeowners in trouble, but I suggest you seek advice from an experienced residential real estate or bankruptcy attorney. Here at Nagle Law Group, we offer a low cost consultation with an attorney who will outline all of the options and make specific recommendations based on your own personal situation. For more information, please contact us (602) 595-3156 or by email at info@Naglelaw.com.
