Foreclosure Defense in Arizona
Are you currently facing a threat of foreclosure in Arizona or are already going through proceedings? Consult with an experienced foreclosure defense lawyer to find out what your options are to save your home.
What Is Foreclosure?
The process begins when an Arizona homeowner does not make a mortgage payment. Arizona is one of a few states that extends a grace period of 10-15 days if you’ve missed a mortgage payment. Foreclosure can begin 120 days after the missed payment. If after this time, the homeowner has not resolved the payment issue, the lender can begin to foreclose on the house. The home is sold to recover the losses caused by the owner being unable to pay their mortgage as stipulated in the mortgage contract.
Foreclosure By Power of Sale
The power of sale is a clause in the mortgage or deed of trust. It states that the lender can foreclose without court oversight. Federal law states that a lender must serve you with a breach letter, and attempt to mitigate their loss before foreclosing. The Arizona Department of Housing states that a notice of foreclosure must be served before the process can begin. Most foreclosures in Arizona move forward in a non-judicial process, meaning the lender can move forward without ever having to file in court. If the lender can prove that you meet these criteria, they can sell the foreclosed home.
Foreclosure By Judicial Sale
Foreclosure by judicial sale involves the sale of a mortgaged property under the supervision of the court. The court proceedings work first to satisfy the mortgage, then to satisfy the lien holders, and then to the lender. Foreclosure by judicial sale requires the lender to navigate the legal process carefully to ensure anyone who buys the foreclosed property legally owns the title.
Types of Foreclosure Defenses
If you’re in the process of foreclosure, you’ll want to do everything in your power to stop the foreclosure. Here are common foreclosure defenses your Arizona attorney might recommend.
The Bank Didn’t Follow State Procedures
The foreclosure process is complicated and time-consuming; oftentimes, that leads to errors. If the bank or other lender didn’t follow Arizona foreclosure procedures, you might have a good case for stopping the foreclosure.
The Mortgage Servicer Made Mistakes
Mortgage services can make mistakes when handling homeowners’ accounts. Here are some of the most common mistakes to look out for:
- Dual tracking, which means pursuing foreclosure at the same time a different loan modification is pending
- Sending your mortgage payments to the wrong party
- Overstating the amount of money you owe for your mortgage payments
- Imposing excessive fees for late payments that weren’t stipulated in the mortgage contract
If you think the mortgage servicer made these or other mistakes, contact an attorney in Arizona right away to help you stop the foreclosure process. This is one of the best options available to help you save your home.
You’re on Active Duty
The Servicemembers Civil Relief Act (SCRA) offers important protections for active-duty military members, including safeguards against foreclosure. In , lenders cannot foreclose on your home without going through a proper court proceeding, allowing you to defend your case with the help of an experienced foreclosure attorney.
One key protection under the SCRA applies if you obtained your mortgage before entering active duty. In such cases, foreclosure must proceed through the courts, even if this is not typically required—unless you voluntarily sign a waiver allowing the lender to bypass this process.
The Foreclosing Party Lacks “Standing”
The foreclosing party is the party that owns the loan. If the lender can’t prove that they own the loan, then that means they lack “standing”. They then can’t foreclose the home.
This happens a lot because banks often bundle your loan with other loans and sell them to other banks or investors. This can make it difficult to track who exactly owns the loan for your house.
The Statute of Limitations Has Passed
The statute of limitations protects homeowners from foreclosure if a significant amount of time has passed since they stopped making their mortgage payments. Believe it or not, some mortgages or missed payments do slip through the cracks.
The Arizona State Legislature states that a lender must complete a foreclosure within 6 years of the date of the default. If the lender has passed this period, you may be able to defend your home through the statute of limitations. Keep in mind, that each new payment restarts the calendar of these 6 years.
Additional Foreclosure Defenses
Here are some less common foreclosure defense options:
- You’re already making payments on a loan modification, which means the foreclosure should not have been initiated.
- You believe the lender violated federal regulations if you have a VA, USDA, or FHA loan.
- You never received a breach of contract letter from the lender informing you of the violation of your mortgage contract or deed of trust.
Preparing for the Foreclosure Defense Process
When an attorney takes on your case in Arizona, it’s important to remember that there are no guarantees that you’ll win, but your chances just climb higher. Each foreclosure case is unique and requires a deep understanding of your state’s foreclosure laws. A good attorney knows how to navigate the court system. They will help you find any loopholes that can work to your advantage.
If you live in a state where foreclosures always happen in civil court, your attorney will simply bring any issues with the foreclosure up to the judge. If you live in a state where foreclosures typically happen outside of the court system, you and an attorney may have to start the judicial process by filing a lawsuit against the at-fault party. Even if you cannot stop the case, the attorney can help you stall the process while you get your affairs in order.
Work with an Experienced Foreclosure Defense Lawyer in Arizona
Even if you feel you don’t have a viable case, an attorney may find solid grounds for fighting the foreclosure. Consulting with an Arizona attorney is an objective way to find out if your case is worth going to court. Most first-time consultations with a lawyer are free, which means there’s no risk involved.
Take the first big steps toward fighting to keep your home. You can also delay the process for as long as possible until you find a new one. We can even help you connect with an attorney across Arizona state lines.
Submit a request online or call us today at (866) 345-6784 to get in touch with an experienced lawyer in your area!
About the Author
Aaron is a professional legal writer with a B.S. in English Education from Southern Illinois University – Carbondale. He has written, published, and edited thousands of legal articles for RequestLegalHelp, which has connected over 5 million people to legal help in the United States.
With over five years of experience writing thousands of legal articles for law firms across the U.S. and Canada, Aaron specializes in covering federal, state, and city-level legal issues ranging from auto accidents to wrongful terminations. Contact Aaron at [email protected] for article suggestions, collaborations, or inquiries.
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