Contrary to popular belief, even affluent and so-called "tony" areas of Arizona are suffering the effects of the same economic troubles facing the communities around Phoenix, Chandler, Mesa, Tempe and Scottsdale. Paradise Valley, for example, renowned as a showplace of high-value luxury homes, has the dubious distinction of having nearly 10 percent of its 6,500 homes either in the mortgage foreclosure or trustee sale processes last year alone.
A Non-Judicial Alternative That Moves Things Along
A traditional mortgage foreclosure is a judicial process, which, like nearly every other judicial process, can be expensive and lengthy, costing thousands of dollars and many months of waiting. Both the lender and the homeowner are essentially at the mercy of an already overloaded and overworked court system, and scheduling delays can drag the process out, resulting in lost money for the financier and no sense of closure for the homeowner.
Because of the obvious downsides to the process, judicial foreclosures are becoming less common as time goes on. The cheaper, faster and less complicated Trustee Sale (a/k/a "Deed of Trust") process is rapidly replacing them. Instead of dragging out for months on end, most Trustee Sales are completed in 120-180 days. Provided there are no plans to sue for a deficiency judgment following a Sheriff's Sale, the Deed of Trust is preferred by many lenders - it allows them to recover as much of the financed amount as possible in a short time.
Beneficial for the Lender and the Homeowner Alike
Even though the process moves quickly, homeowners still have options if they want to keep their home. The mandatory waiting period before the actual Trustee Auction can be used to cure arrearages, negotiate a loan workout, or try to sell the property yourself in an attempt to pay off the debt. If you as the homeowner have filed for bankruptcy (or are considering it), it might be possible for you to negotiate a halt to the foreclosure, sell the home and then use the money as part of the bankruptcy process to pay off other debts.
If your home has been foreclosed on, you have fallen behind on payments, or you anticipate that you will be unable to make future payments, ignoring the problem will not make it go away. Your best bet would be to contact an experienced Arizona bankruptcy and home foreclosure attorney who can educate you about the process and help you choose the option that best fits your needs.
