Foreclosure Assistance
Foreclosure is the legal process by which a mortgage lender can obtain legal ownership of a property in default. It relinquishes a homeowner from any all right to the property and evicts the homeowner from the premises.
Most lenders will try to work out alternatives with a homeowner in default before trying to repossess a home. If a homeowner works with his or her lender, the lender will an additional three month window on average before foreclosure is initiated.
If an alternative cannot be worked out between the lender and the homeowner, the lender may begin foreclosure proceedings. Because most homeowners have a trust deed, the foreclosure timeline is relatively quick.
In Arizona, a lender must appoint its trustee, the person or entity that has the legal right to sell the home in a trustee sale, to handle the appropriate paperwork. By law, the trustee must record in the county recorder's office a "Notice of Trustee's Sale". This is the legal notice that the home is to be sold no sooner than 90 days from the recording date of the notice. This notice must also be published a minimum of once a week for four consecutive weeks in a "newspaper of general circulation" in that county. The trustee will mail a notice within five days of the recorded notice of trustee sale to the homeowner and other parties affected by the foreclosure.
Proceeds from the sale are used to pay off the primary lien (trust deed) against the home (as noted on the trust deed). If any proceeds remain, payment is made to junior lien holders in order of priority. In the event that any remaining balance is left over from the sale, the trustee will remit the balance to the ex-homeowner.
Title is conveyed to the winning bidder by a trustee's deed. This transfer of title relinquishes any right the previous owner has from reinstating the mortgage or redeeming the property after foreclosure. In addition, the trustee's deed clears the title of any liens and encumbrances that are junior to the trust deed.
In certain situations, junior lien holders may pursue a deficiency judgment against the previous owner to recover the balances owed. However, an Arizona homeowner may be protected by such lawsuits under the law.
Most lenders will try to work out alternatives with a homeowner in default before trying to repossess a home. If a homeowner works with his or her lender, the lender will an additional three month window on average before foreclosure is initiated.
If an alternative cannot be worked out between the lender and the homeowner, the lender may begin foreclosure proceedings. Because most homeowners have a trust deed, the foreclosure timeline is relatively quick.
In Arizona, a lender must appoint its trustee, the person or entity that has the legal right to sell the home in a trustee sale, to handle the appropriate paperwork. By law, the trustee must record in the county recorder's office a "Notice of Trustee's Sale". This is the legal notice that the home is to be sold no sooner than 90 days from the recording date of the notice. This notice must also be published a minimum of once a week for four consecutive weeks in a "newspaper of general circulation" in that county. The trustee will mail a notice within five days of the recorded notice of trustee sale to the homeowner and other parties affected by the foreclosure.
Proceeds from the sale are used to pay off the primary lien (trust deed) against the home (as noted on the trust deed). If any proceeds remain, payment is made to junior lien holders in order of priority. In the event that any remaining balance is left over from the sale, the trustee will remit the balance to the ex-homeowner.
Title is conveyed to the winning bidder by a trustee's deed. This transfer of title relinquishes any right the previous owner has from reinstating the mortgage or redeeming the property after foreclosure. In addition, the trustee's deed clears the title of any liens and encumbrances that are junior to the trust deed.
In certain situations, junior lien holders may pursue a deficiency judgment against the previous owner to recover the balances owed. However, an Arizona homeowner may be protected by such lawsuits under the law.
To learn more about the foreclosure process and what you can do to avoid foreclosure, click the links to the right.
