10 Ways to Stop Foreclosure in Phoenix AZ

November 6, 2008

Phoenix AZ real estate is struggling to find a bottom. As a result, our local economy is in a recession causing a litany of problems including declining Phoenix AZ real estate values, unemployment and rising foreclosures.

Unfortunately, foreclosures are a sign of the times and something that we need to address and face head on.

If you have faced a recent hardship and fear that foreclosure may be on the horizon, here are

10 Ways to Stop Foreclosure in Phoenix AZ

  1. Sell your home - selling your home is the only way to stop foreclosure 100% of the time.
  2. Loan Modification is a procedure whereby a loans payment plan is altered due to the hardship of the borrower. This can include the rate, term and monthly payment amounts
  3. Forbearance - contact your lender and agree to stop foreclosure in exchange for paying a lump sum, or a schedule of payments to bring your loan current
  4. Re-Finance your loan - this is a great option. Remember to do this, before, you know you are actually facing foreclosure . Otherwise, your credit will prevent you from qualifying for a loan
  5. Short Re-Fi‘ (short -refinance) - Here’s how it works.  A lien-holder (typically, a bank) will allow a borrower to re-finance the short amount with another bank.
  6. 2nd Loan or HELOC - you may be able to take out a Home equity line of credit to pay for your monthly loan payments until the hardship has passed
  7. Short Sale - Simply put, a real estate Short Sale means the lender is accepting a lesser amount as a payoff than the total amount of the loan due.Why??? ….Well, a seller has an opportunity to sell the house, possibly salvage credit (seller still cannot have late payments) , and potentially avoid bankruptcy,
  8. Deed-in-lieu of Foreclosure -A Deed in lieu of foreclosure is where the borrower exchanges the deed of the home to satisfy a loan that is in default and avoid foreclosure proceedings.
  9. FHA “Partial Claim” Loan - A Partial Claim  can allow you to instantly bring your loan current and stop any Foreclosure action. This strategy is only available on FHA loans.
  10. Bankruptcy - Foremost, I suggest you speak with a bankruptcy attorney for any advice before this option. It is also important to note, that not all state provide bankruptcy as a means of stopping foreclosure.

**I am not an attorney! Please consult with an attorney and/or CPA regarding legal and tax implications for any of the above 10 Ways to Stop Foreclosure in Phoenix AZ listed.

The important thing to know is that you have options prior to facing foreclosure. Foremost, contact your lender as soon as you know that you may have some trouble making ongoing loan payments.

Contact your bank and/or your real estate professional to help you through a difficult , but manageable process.

Make sure you work with a Phoenix Realtor or Scottsdale Real Estate agent who is experienced with short sales and bank owned transactions.

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Copyright © James Wexler *10 Ways to Stop Foreclosure in Phoenix AZ*

If you are listing your home as a short sale in Phoenix Arizona or Scottsdale Arizona make sure you hire an agent who knows how to do short sales and has the experience to get the job done.

Call 480.221.8080 to find out more about Phoenix AZ Short Sales and Scottsdale AZ short  Sales

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Written by James Wexler · Filed Under Articles, Lending / mortgages, Short-sales / Foreclosures 

Comments

One Response to “10 Ways to Stop Foreclosure in Phoenix AZ”

  1. Kelley Beach on November 12th, 2008 4:09 pm

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