Foreclosure Alternatives

~ We may be able to save Your home from foreclosure in Arizona ~

How does bankruptcy help with a foreclosure or trustee’s sale?

In Arizona, when a person falls behind on their monthly mortgage payments they eventually get a “Notice of Trustee’s Sale”.  This is a 90 day notice that if no action is taken your house will be sold at an auction.

It is important to understand that in Arizona, most residential homes are in a “deed of trust”.  This is slightly different than a mortgage, but everyone usually just uses the term mortgage because that is what they are familiar with.  The only thing you need to know about a deed of trust is that it makes it easier for your lender to foreclose or sell your home at auction.

If you live in Phoenix or Gilbert, Arizona and have received a 90 day notice of trustee’s sale on your home contact D.M Bankruptcy Law Group, LLC right away. We’ll talk about foreclosure alternatives to save your home. 

~ Common Questions On How to Stop a Foreclosure ~

What is a 90 day notice of trustee's sale?

Once you get a 90 day notice of trustee’s sale for your home, there are a few things that must be true:

  1. You are obviously behind in payments.  What is the cause of this? Were you out of work for a while?  Are you still out of work?

  2. Your mortgage payments are behind AND you are accruing late fees.  If you have received the 90 day notice, then you were likely behind nearly 6 months or more. 

  3. You have incurred additional debt, such as credit card debt, to help account for the likely income loss you have suffered.

  4. You are stressed and upset.  This is likely the most serious thing going on in your life right now.

What are your foreclosure alternatives, once you get a 90 day notice of trustee’s sale?

  1. Though not helpful, the obvious answer is that one of your options is to just pay the balance of arrears and penalties owed and “catch up” on your payments.

  2. Another option is to work something out with your lender.  Sometimes the lender will allow for a loan modification or a forbearance agreement.

    • A loan modification is an agreement to rearrange the loan payments so that you are no longer in arrears.  It usually involves the extension of the total loan term and may affect interest rates.  Almost always, the modification makes the total cost of paying back your loan significantly higher than it was before, if not only because the extension of years on the loan.

    • A forbearance agreement usually looks like a 6 month payment adjustment where you are paying the arrears back plus your mortgage payment.  Because it is a short amount of time, the payment is usually very high.

  3. One option is to sell your home.  This is self-explanatory, especially if you get going right away.  If you wait until the 90 days is about to expire and try and sell the home, you may not be very successful.  You would have to get the lender to voluntarily agree to extend the trustee’s sale date.  If you are interested in selling your home, please let us know and we can get you in touch with a great real estate agent.

  4. One option is to walk away from your home.  This is a terrible choice and one used by folks who simply wait too long to do something and then feel the world has crashed in on them and they give up.  Do not do this!

  5. One option is to file a Chapter 7 bankruptcy.  This is not a sure-fire way to save your home, but it can offer you some time.  Folks who file a Chapter 7 bankruptcy because they are facing a trustee sale do so because the Automatic Stay will force the lender to postpone the auction, usually at least 30 days and often more.  Lenders generally have the right to ask the court for permission to proceed with the auction.  Folks who choose a Chapter 7 as a remedy to a pending foreclosure are usually just needing time and had planned on surrendering the home.  They usually also have other debt that was needing attention and so Chapter 7 was the best approach for them.

  6. If you want to keep your home and you can afford the payments because the cause of the lack income has been eliminated, either with a new job, or the furlough ended or whatever the case may be, then the best option is usually a Chapter 13 bankruptcy.

    • Chapter 13 stops the foreclosure or auction sale immediately, just like in Chapter 7, by means of the automatic stay.  At the D.M. Bankruptcy Law Group, LLC, we can file your Chapter 13 as late as the DAY BEFORE your foreclosure or sale date.  While we encourage better planning, we are definitely a choice for the emergency situation.

    • Chapter 13 takes the arrears (the back payments and the penalties) and spreads them out over the life of a Chapter 13 plan.  You pay your regular payment through the plan, plus the mortgage arrears.  Other debts are also addressed in the plan.  If you want the best and usually least costly approach to saving your home, filing a Chapter 13 bankruptcy is almost always it.

When your home is at risk, there is nothing wiser than seeking help from a bankruptcy attorney.

We help clients from all financial backgrounds file bankruptcy to save their home in Gilbert, Phoenix, Mesa, Queen Creek, and other surrounding Arizona cities. Please contact Chris with D.M. Bankruptcy Law Group, LLC right away and let’s do everything possible to save your home.

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