Foreclosure Defense in Chandler, AZ

While foreclosure is a rough and emotional experience in the short term, the long-term impact can be devastating. It can remain on a credit report for up to seven years, making it difficult to open new accounts. Moreover, it can affect job prospects, insurance rates, and other aspects of daily life.

We will explore your legal options during this tumultuous time. Chandler residents may even find a way to keep more assets with the help of a lawyer.

What Is Foreclosure?

The earliest stage of foreclosure in Chandler, AZ is when a homeowner misses a mortgage payment.

There is no specified grace period for foreclosures in Arizona. However, the process in Chandler typically begins when the lender sends a notice of default. The homeowner has 90 days to cure the default and bring the mortgage current before the lender can proceed.

The lender may start foreclosure proceedings when the homeowner fails to resolve their payment issue. The purpose of taking this action is to recover the losses incurred by the lender. Selling the property achieves this objective under the provisions of the mortgage contract.

Foreclosure By Power of Sale

The power of sale is a provision in either the mortgage or deed of trust. It allows the lender to foreclose on a property without court approval. If the lender can demonstrate that the borrower meets the criteria, they can foreclose the property.

The requirements for a power of sale foreclosure in Chandler are as follows:

1. A power of sale clause must be in the mortgage or deed of trust.
2. The trustee must file a notice of sale with the county recorder’s office.
3. There should be a notice of sale in a local newspaper for at least four consecutive weeks. The last publication should occur at least 20 days before the sale.
4. The notice of sale must also be on the property at least 20 days before the sale.
5. The sale must take place on the date and time specified in the notice of sale.
6. The property must go through a public auction and sell to the highest bidder. The revenue goes to pay off the mortgage and any costs associated with the foreclosure.
7. The court must confirm the sale within five days.

Foreclosure By Judicial Sale

In a foreclosure by judicial sale, the court authorizes the sale of a mortgaged property. The mortgage gets paid first, followed by lien holders and the lender. The foreclosure process must be meticulous to ensure the buyer of the property legally owns the title.

Types of Foreclosure Defenses

Some typical defenses that a lawyer in Chandler uses can stop the foreclosure process. These are some of the most convincing and common strategies they use.

The Bank Didn’t Follow State Procedures

Stopping foreclosure can be possible if the lender does not follow the proper procedures. This possibility exists because the foreclosure process can be time-consuming. But it can also lead to errors. When the bank or lender has made mistakes, you may have a valid case for stopping their actions.

The Mortgage Servicer Made Mistakes

Some errors that mortgage services might make when managing homeowners’ accounts include:

• Attributing your mortgage payments to the wrong account
• Exaggerating how much you owe
• Assigning excessive fees to late payments that are not in the original contract
• Trying to foreclose while the homeowner has a pending loan modification

If you suspect the mortgage provider has made any of these errors, contact a lawyer in Chandler, AZ. Taking this action is one of the most effective ways to save your home.

You’re on Active Duty

The Servicemembers Civil Relief Act (SCRA) gives extra protection to active duty personnel. It includes preventing lenders from foreclosing a home without a court proceeding in Chandler. You can use the safeguards under this act to defend yourself with the help of a foreclosure lawyer.

If you received the mortgage before starting active military duty, any foreclosure must happen through a court. It does not matter if this is not the typical procedure. This protection remains in effect unless the borrower signs a waiver.

The Foreclosing Party Lacks “Standing”

In foreclosure cases, the foreclosing party is the entity that owns the mortgage loan. However, if the lender cannot prove ownership, they may lack legal standing to foreclose. This occurrence is more frequent than you may believe. Mortgage loans get bundled with other loans and sold to banks or investors. This regular trading can make it difficult to determine who owns the loan for a specific property.

The Statute of Limitations Has Passed

The statute of limitations can prevent foreclosure if the homeowner, even if they have not made mortgage payments. As unlikely as it may sound, some mortgages or missed payments may go unresolved.

In Chandler, the foreclosure statute of limitations lasts six years from default. It gives the lender a time frame of six years to initiate foreclosure proceedings. If six years have passed, the lender may not be able to pursue foreclosure unless the borrower resets the clock. However, the statute of limitations can be complex and may differ based on the situation.

Additional Foreclosure Defenses

Below are some uncommon ways to defend yourself against foreclosure:

• The foreclosure should not have started while you complete payments on a loan modification.
• You believe the lender violated federal regulations, especially if you have a VA, USDA, or FHA loan.
• You have never received a breach of contract letter from the lender.

Preparing for the Foreclosure Defense Process

Hiring an attorney in Chandler, Arizona can improve your chances of defending against foreclosure. However, there is no guarantee of success since each case is unique and requires a thorough understanding of foreclosure laws. They could also find legal loopholes that may be advantageous.

If you reside in a state where foreclosures always occur in civil court, your attorney can advocate for you with the judge. Otherwise, you may need to initiate the judicial process by suing. For Chandler residents, taking this step would happen with the Maricopa County Superior Court.

Work with an Experienced Foreclosure Defense Lawyer in Chandler, Arizona

If you are facing foreclosure, it is advisable to seek legal counsel even if you think your case is weak. An attorney may find grounds for fighting the foreclosure you didn’t know existed. A consultation with a lawyer is typically free, so there is no financial risk.

In Chandler, AZ, an attorney can objectively evaluate your case and determine if it is worth pursuing. Delaying the foreclosure process may also be an option while you look for alternative housing.

If you need help finding an attorney, you can submit a request online or call (866) 345-6784. We can even help you connect with an attorney across Arizona state lines.