Ways To Avoid Foreclosure in Phoenix, Arizona

Ways to avoid foreclosure in Arizona

If your lender has filed for a Notice of Default as a result of you missing payments, there are a few things that you can still do to avoid the foreclosure process in Arizona.

Short Sale: If the auction date has not yet been set by your lender, the lender is obligated to look at any offers that come in from a buyer. The quickest way to sell your property is to find a cash buyer for your Arizona home. Another option is to contact a realtor and get it listed on the Multiple Listing Service (MLS). If the property is worth more than the loan value, you will more than likely receive offers on your home. After the offer is submitted to the bank, the lender may see it as saving them time and effort by approving the short sale purchase price and not going through with the short sale process. If the lender does not approve the short sale, the property will be going to an Arizona real estate auction at a set date and time.

Foreclosure Workout: There are several reputable companies in the Phoenix area market that can walk you through the process of a foreclosure workout. If the auction date has not yet been set, more than likely the lender will entertain the possibility of compromise that will allow you to get back on track in paying your mortgage


Bankruptcy: Although not the best option, an Arizona bankruptcy filing stops any pending foreclosures dead in its tracks. Once you go to court, the bankruptcy attorney’s job is to simply be a mediator. Filing for an Arizona bankruptcy will not let you off the hook for any debts, it will just buy you more time with the foreclosure process and any other debts you may have. A best case outcome when filing for bankruptcy is that your creditors will work out a reasonable payment plan which may allow you to get back on your feet.

Lease Options: Most of the home loans in Arizona nowadays are no longer assumable. Most mortgages contain a “Due on Sale” clause which states that the original borrower pay off the mortgage once it has transferred title. In some cases, the lender may be able to remove the clause on your mortgage and allow another buyer to take over your mortgage. In a Lease-option, the buyer that is purchasing your home becomes your tenant with the option to purchase the home sometime in the future. In order for this transaction to work, you need to make sure that the buyer’s monthly payment covers your monthly mortgage payments.

Selling to a “We Buy Houses” company. Often times, this will be the quickest way to sell your home as there are a lot of cash buyers in the phoenix/Arizona market. This is especially true if your home has some equity build into it. Not all cash investors are created equal. You will most likely be contacted by numerous companies some of which do not have the cash to close the deal and will instead look for other “cash buyers”. These are often wholesalers that are just starting out and have little to no money backing. When choosing a company to go into contract with, make sure that they will be the buyers of the home and will be able to close with their own money. Often times, these companies will either fix and flip the home themselves or keep it in their rental portfolio.

Phoenix Home Buyers Group


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