Stop a Foreclosure with Automatic Stay Through Filing Bankruptcy in Phoenix, Arizona
In Arizona, Lenders have the right to begin a foreclosure proceeding if you are behind on mortgage payments. Don’t become one of the growing statistics of people throughout Phoenix who have lost their home. Stop foreclosures in Arizona, contact our Phoenix bankruptcy law firm and find out what measures you can take to save your family home.
According to Arizona law, you have the right to a 90 day notice from your lender before they start foreclosure. If you fall behind on payments, your bank or lender will aggressively peruse action against you.
What is the best option to stop a foreclosure?
Generally the best way to stop foreclosures in Arizona is to file a Chapter 13 bankruptcy in Phoenix. If you are facing a foreclosure in Arizona, it is in your best interest to contact an attorney who is an expert in Arizona bankruptcy law. My Arizona Lawyers will give you the information you need specific to your financial situation that will help you make good decisions regarding your financial future. Our team will see you through the entire legal debt-relief process. My AZ Lawyers has successfully represented clients.
Often a foreclosure happens because of life events that causes a person to be unable to make mortgage payments. When a homeowner loses his/her right to a property because of non payment, a foreclosure may occur. Mortgage lenders typically pursue a foreclosure after several missed payments on a mortgage. Foreclosure can be very frightening, but a homeowner does have rights and there are options that be helpful in this situation.
An Arizona homeowner who is unable to pay outstanding mortgage debt or is unable to sell the house in attempt to regain payments (called a short sale) can expect the property to sell at a foreclosure auction. If the property still doesn’t sell, the property ownership is taken over by the bank or lending institution. Short sales are a solution but aren’t the best option. Do you best to stop foreclosures in Arizona.
What is an automatic stay?
An automatic stay, from filing bankruptcy, is an order that stops a creditor from taking any collection activities against you. When a bankruptcy is filed in Phoenix, the automatic stay is put into effect. This means that foreclosures in Arizona are stopped. Chapter 13 bankruptcy is generally the best option to save a foreclosed home in Arizona, but Chapter 7 also stops foreclosures but is more of a temporary help. Discuss you best options to stop foreclosures with an experienced Arizona Bankruptcy Law Attorney.
Automatic stay does put a stop to the scheduled sale of your home, but you will need to catch up on mortgage payments you have missed. For example, it allows homeowner 3-5 years to catch up on these payments with no additional interest in a Chapter 13 bankruptcy. Regular payments are still required if you file for Chapter 13 bankruptcy. Confused or need more information about Chapter 7 vs. Chapter 13 bankruptcy and which would help your financial situation the most? Contact an attorney at My AZ Lawyers. Call and schedule an appointment for a FREE CASE EVALUATION either in office or over the phone. Ask questions and find out how to stop a foreclosure of your home.
How to stop the sale of your home
You are at risk of losing your house if you have received a Notice of Trustee Sale. If you need to stop the sale of you house, filing bankruptcy can help. When you file your bankruptcy with the bankruptcy court, all collection efforts must stop — including the sale of your house.
Many times a bank will move towards foreclosing a home pretty aggressively if payments have been missed. If you are behind on your mortgage payment by two or three months, your lender is probably considering action.
One option that your Arizona lender may offer is a short sale. If you are behind on your house payment and facing a foreclosure in Arizona, your lender may offer you the possibility of a short sale.
An Arizona short sale would allow you to sell your home for less than the amount that is still owed on the loan to your lender. Selling your home in a short sale does have some drawbacks, including potential tax consequences, liability for deficiency amounts still owed on the property, a short sale may impact to your credit score ,and the fact that you will still be responsible for paying off your other debt.
Arizona Foreclosure Attorneys
As Phoenix foreclosure attorneys, our lawyers chat with people daily who have heard, been mis-informed, read, or been told by their creditors that filing for bankruptcy in Arizona automatically means they will lose their homes. This is simply not the case. This is a scare tactic by the creditor to try and dissuade the home owner from declaring bankruptcy. Don’t let lies from your lender be what stops foreclosures.
Under the current bankruptcy laws in Arizona, you may be able to eliminate all of your unsecured consumer debt, such as credit card debt, and continue paying on your secured debt, such as your home mortgage and auto loan all while keeping your home and your car. Filing for bankruptcy is a great tool when trying to stop foreclosures.
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