Foreclosure Help Arizona – Will Bankruptcy Save My Home?

Foreclosure Help Arizona – Will Bankruptcy Save My Home?

Have you gotten a foreclosure notice, or notice of trustee sale? This doesn’t mean all of your options are over and you’re going to lose your home. You have lots of options. Of course, you can find a way to pay the mortgage arrears and bring the house current to prevent foreclosure, but not many are able to do this.

Bankruptcy is an excellent option for those facing a foreclosure. When a bankruptcy case is filed, the filer or “debtor”, receives automatic protection from creditors and all creditor action is stopped, or stayed. For example, assume there is a foreclosure sale pending on your home tomorrow, and you file for bankruptcy protection today. By law that sale may not proceed. This protection is called the automatic stay. It is a power tool used to stop a foreclosure from moving forward.

If you are facing foreclosure, don’t ignore the problem. Talk to an Arizona bankruptcy attorney about stopping the foreclosure and saving your house.

Our office is happy to give a free consultation with an experienced Arizona bankruptcy attorney so that we can discuss your options.

Call for a free consultation: (480) 447-1554

Another useful article on this topic can be found here:

Arizona Bankruptcy Explained – If I File for Bankruptcy Can I Save My House?

When you file a bankruptcy case you get what’s called the “Automatic Stay”, or automatic protection that halts creditors from taking action against you or any of your property (note that the automatic stay does not go into effect in some instances where there are multiple bankruptcy case filing within a certain period of time).

So while you may be able to stop a foreclosure dead in its tracks, whether or not you can save your house, rather than just delaying the foreclosure process, depends on a number of things. At any rate, the bankruptcy case must be filed before the foreclosure date, and the creditor noticed, in order to stop the foreclosure.

If there’s a foreclosure date and you’re filing a chapter 7, really all the chapter 7 can do is stop the foreclosure process temporarily. If you want to save the house, you will independently have to come to an agreement with the creditor, or pay back your mortgage arrears before you lose the protection of the Automatic Stay.

If there’s a foreclosure date and you file a Chapter 13 bankruptcy, your arrears are usually put into a chapter 13 plan, and paid off within a period of time, thereby saving the home.

Call for a free consultation: (480) 447-1554

I’m Far Behind on My Mortgage. Will Chapter 13 Bankruptcy Cure My Mortgage Arrears?

I’m Far Behind on My Mortgage. Will Chapter 13 Bankruptcy Cure My Mortgage Arrears?

Filing Chapter 13 bankruptcy any time before a foreclosure/trustee sale, will stop a foreclosure, and cure a homeowner’s mortgage arrears if they successfully complete a Chapter 13 bankruptcy.

How does Chapter 13 bankruptcy cure mortgage arrears? Chapter 13 bankruptcy is a plan to repay some or all of your debts over a period of usually 3 to 5 years. When a homeowner is behind on his/her mortgage payments, the chapter 13 plan pays back to the mortgage company, whatever the homeowner is behind on the mortgage. The effect is that after the homeowner completes his/her Chapter 13 plan, the homeowner’s mortgage is current and all other debts the homeowner had (for example credit cards) are discharged.

Here’s an example. Let’s say Bob home owner is behind 12 months on his mortgage payments because he lost his job a few months back, and has now recently become employed again.

Bob gets a notice from his mortgage lender in the mail stating that they are considering foreclosing on Bob’s home because he hasn’t made his payment in 12 months. Bob and his attorney then file Chapter 13 for Bob, and state in the chapter 13 plan, that Bob will pay his mortgage arrears a certain amount over the next 3 to 5 years.

Bob then goes the next 3 to 5 years making only 2 payments each month for his debts. One payment goes directly from Bob to his mortgage company for the usual mortgage payment he had, and the other, a small amount to the Chapter 13 bankruptcy trustee for all the debts that Bob had when he filed bankruptcy.

The Chapter 13 bankruptcy trustee takes Bob’s monthly payments, and distributes most of it to Bob’s mortgage company for the arrears.  Over the 3 to 5 year period of Bob’s payment, the trustee has paid the mortgage arrears to the mortgage company in full.

The effect is, now Bob is current on his home, and he’s cured all of his arrears through Chapter 13 bankruptcy. Also, in this scenario, if Bob had any unsecured debt, like credit cards, those would be discharged at the end of the payment plan whether or not they were paid back in full.

Chapter 13 bankruptcy works well for lots of people who had a temporary period of economic hardship, and just need some time to recover.

If you’re substantially behind on your mortgage, you don’t have to lose your home. You have options. Here at the Yontz Law Group, we are more than happy to meet with anyone to explain their options.  Contact an experienced Arizona Bankruptcy Attorney here.

Please be aware that any information on this website is for educational purposes only and is not intended to be legal advice. If you need legal advice, please contact an attorney, or contact the Yontz Law Group, P.C. for a free consultation with a bankruptcy attorney in Phoenix, Mesa, Gilbert, Apache Junction, Chandler, or throughout the state of Arizona.

If I Short Sale, Will I be Liable for the Difference of the Sale and What I Owe???

If I Short Sale, Will I be Liable for the Difference of the Sale and What I Owe???

If your home is “under water” or “upside down” and the lender approves a short sale, the difference of what you owe on the note (your loan) and what the home actually sells for, is waived by the lender, unless you agree to be responsible for it.

For example, assume you originally bought your home for $200,000, and now it’s worth $100,000. The lender approves a short sale, of $100,000, making the short sale difference $100,000. After this sale closes, you have no liability to the lender for the $100,000 short sale difference, unless you agree to pay the $100,000 back to the lender.

If you’re short selling, you MUST READ THE SELLER APPROVAL DOCUMENTS CLOSELY. Be cautious of what realtors are telling you. Remember, they are not attorneys. If you are considering a short sale, it is always recommended that you seek the advice of an experienced attorney in Arizona, who is familiar with this area.

After Foreclosure, will my lender come after me? If so, would bankruptcy benefit me?

After foreclosure in Arizona, will my lender come after me for the deficiency?

It depends on the type of loan you as homeowner had/have.  If the loan was used to purchase the home, then the loan is considered a “non-recourse” loan, and the homeowner has no personal liability for it, unless there is excessive damage to the home.

In most cases, if the loan was NOT used to purchase or improve the home (such as a HELOC) the lender can sue the homeowner to collect on the loan.  For example, if the homeowner purchased the home, and then borrowed $100,000 under a HELOC, that lender can file a suit in court to collect on the promissory note.

 Would bankruptcy benefit me if I am responsible for the deficiency?

Depending on the homeowner’s financial situation, and depending on the chapter, filing bankruptcy can discharge, or reorganize this type of debt (unsecured debt, once the home is foreclosed). It is common for a homeowner who has/had a significant outstanding balance on a HELOC to file bankruptcy once they’ve realized that foreclosure is probably inevitable, or that foreclosure is the best business decision to make in their situation.

The homeowner must be aware that deficiency statutes, or “anti-deficiency” statutes are different in every state. Therefore, if the homeowner is considering filing bankruptcy after foreclosure, or in anticipation of foreclosure, the homeowner should always seek the advice of an experienced Arizona bankruptcy attorney (or a bankruptcy attorney in whichever state you’re in) to become educated on how bankruptcy would effect them.

Please be aware that any information here or on these sites is for educational purposes only and is not intended to be legal advice. If you need legal advice, please contact an attorney, or contact the Yontz Law Group, P.C. for a free consultation with a bankruptcy attorney in Mesa, Gilbert, Apache Junction, Phoenix, or throughout the state of Arizona.

Avoiding Foreclosure in Arizona

For any homeowner in Arizona or anywhere in the country, foreclosure is a nightmare scenario, but it can be stopped by filing bankruptcy anytime before the foreclosure date.

Filing for bankruptcy in Arizona stops foreclosure, lifts the burden of debt from your shoulders, and sometimes eliminates second mortgages.

If you are behind on your mortgage payments, or you are not paying other bills in order to stay current on your mortgage, it’s clear that a decision has to be made. In this situation, you need to take action before you get in deeper financial trouble.

At The Yontz Law Gorup, we have helped hundreds of people in Maricopa County (Phoenix/Mesa/Gilbert/Chandler/Pinal and all over Arizona) obtain relief from debt, stop foreclosures and keep their homes. We use bankruptcy to stop foreclosure and get you the relief needed to make a financial comeback.

Contact us to schedule a free consultation with an Arizona bankruptcy attorney. We want to help you keep your home and get debt relief.

Filing for Bankruptcy in Arizona stops Foreclosure and Sometimes Eliminates Second Mortgages.

An Arizona bankruptcy attorney at our firm will review your options and recommend an appropriate course of action for you. Your options usually include filing Chapter 13 or Chapter 7 bankruptcy.

A Chapter 13 bankruptcy will stop foreclosure. Your debts are reduced and in some cases discharged. You will get an affordable payment plan that will enable you to get back on your feet again financially. In Chapter 13 bankruptcy, you will be able to roll your past due mortgage payments into your payment plan, and your mortgage will be current. In some situations, you can eliminate second mortgages completely.
A Chapter 7 bankruptcy also stops foreclosure for a while — long enough for you to find the money to get current on your mortgage or to find another place to live.

Our firm can stop a foreclosure at any time up to the sheriff’s sale by filing for bankruptcy on your behalf.

Free Consultation with an Attorney
For a free initial consultation with The Yontz Law Group, call 602-353-7713 toll free or send us an e-mail.