How long is the pre-foreclosure process in Phoenix Arizona?
This is a question that I am asked all the time and because of it, I will be writing a series of articles on what does pre-foreclosure mean and how to get out of pre-foreclosure in Metro Phoenix but before we start, please be assured that Cash Now Homes is here to help you when you most need it if you find yourself in this situation. Please remember that bad things happen to good people and I see it all the time in our lovely Metro Phoenix area but before I begin, I must state that I am not an attorney or a tax professional in the great state of Arizona and that is a needed disclaimer before we continue so thank you for making it this far. Also, Cash Now Homes highly recommends that you seek the counsel of an attorney and tax professional if you find yourself in pre-foreclosure.
So let’s get started and define pre-foreclosure in Arizona so we are all on the same page and a very important point to understand is that foreclosure varies by state and all states have different processes and actual timelines but we will only be looking at the great state of Arizona and how pre-foreclosure happens so let’s look at the details below which should shed some light on pre-foreclosure.
- You should know that Arizona operates as a “title theory state” which means that title to the property will remain in a trust until the payment in full actually happens for the underlying loan in place. Furthermore, there is a document that actually secures the title and is referred as a “deed of trust” but in Arizona it is called a “trust deed.”
Now that we have some background, let’s develop this a wee bit more because it is definitely has lots of industry specific jargon that I will simplify for you so let’s keep moving forward. We have already stated that Arizona is a title theory state and the actual foreclosure process is etched in stone by a clause in your documents known as “The Power of Sale” and this is a very important clause so please pay attention. So what is this clause all about George? Glad you asked as the Power of Sale clause gives your lender the right to sell your property if you stop making payments otherwise known as defaulting on your loan.
Whoa George!! That was a wee bit too much info all at once. Okay good people of Arizona, I heard you loud and clear and it seems to me that this is going to be a very long series but in the end, we will have put some great information on our Cash Now Homes blog for all of our clients and potential clients to gain an understanding on the exact definition of pre-foreclosure process in Arizona so let’s move on as we have much to cover
Let’s say that you have defaulted (theoretically) on your loan also known as “stopped making payments” which means that because of the Power of Sale clause in place, it will allow the lender to do a “non-judicial foreclosure” which simply means that the complete foreclosure process can absolutely occur without the judicial court system getting involved to include the authorities. So what does this actually mean? It means that the vast and I do mean vast majority of foreclosures in Arizona happen in a non-judicial manner which in the long run is cheaper for everyone versus something called a “lien theory state” which requires the court system to get involved and it can prove rather costly and “slow as molasses to boot might I add” but I digress and will soon write a separate article about this as you need to know the difference between the lien theory state and the title theory state which we are referring to specifically in this article for Arizona.
So what does this process look like and what’s the step by step for this George? Once again you are asking all the right questions but should I expect less from the good people of Arizona? Absolutely not! Okay, let’s move on to the meat and potatoes.
The homeowner goes into default status which is not a good place to find yourself in. Furthermore, the lender could legally begin the foreclosure process from Day 1 once your mortgage payment is considered to be late but in reality, this does not happen too often because typically it truly takes quite a few months of missed mortgage payments before the actual foreclosure process starts which is good news. And why is this George? Well, it basically boils down to the fact that the lender wants your money and not your house and that is the bottom line although expect the annoying phone calls to begin and they will just like the sun rises in the morning and sets at night so be prepared good folks of Arizona. At this point, I will end this article right here as it is better to split this up into subsequent articles so it’s easier to digest this information and once again I look forward to sharing everything I know about the pre-foreclosure process in Arizona and if you need assistance, please know that Cash Now Homes is here to be of service in Metro Phoenix and beyond.
Call Us Now