For many, losing a home to foreclosure feels like failing at life itself. Owning your own home is a large part of the American dream; once you lose it, you have to begin building your dream all over again. It is definitely a setback to achieving one’s life goals.
Taking the mystery out of this area of real estate law cannot return your home to you, but it might make you feel better about your ordeal. This post will provide a brief systematic explanation of how nonjudicial foreclosures work in Arizona.
First, the homeowner goes into default and the lender decides to initiate foreclosure by filing a “Notice of Trustee Sale.” Most lenders wait until the homeowner is several payments behind to foreclose.
Some states have a set redemption period in which a homeowner can catch up on the loan payments and stop foreclosure. You might be relieved to know that Arizona has no redemption period. This means you can reclaim your home at any time before its sale by catching up on your payments. Once the property sells, it will be too late to reverse the foreclosure process.
Next, either the property will be sold through a bidding process or, if that fails, by having the property listed on the open market. At this point, the property is out of your hands and you cannot reclaim your home or stop the foreclosure process.
Real estate law often seems confusing to the layperson, but an attorney practicing in this field can help you understand the laws in Arizona. Whether you are facing foreclosure or some other real estate crisis, a lawyer consultation might be able to help you find alternative solutions to your problem.
Source: Phoenix Real Estate Guy, “The Foreclosure Process in Arizona.,” Jay Thompson, accessed Sep. 20, 2017