Arizona Foreclosures

Nobody really likes to talk about the subject about foreclosure, but, unfortunately, Arizona foreclosures are very much a part of Arizona.

Looking for some advice on avoiding foreclosure?

Let's get started first with some general information about foreclosed properties here, in Arizona.

It seems that just as fast as the state of Arizona is growing, are the number of homes being foreclosed upon.

Foreclosures are becoming a hot topic on the national evening news these days as more and more homeowners are faced with losing their homes.

Arizona is listed as one of the top states here in the United States that have a record number of foreclosures.

CNN Money reports that adjustable-rate mortgages, especially the mortgages that are considered, sub-prime adjustable rate mortgages, continue to contribute to these Arizona foreclosures.

The following states take honors with the highest foreclosures:

If your mortgage remains unpaid after the due date for a payment, the lender has the right to start foreclosure. Many banks will allow you what they call a "grace period," though so as not to start any foreclosure process on your property.

Don't panic too much unless you receive a legal notice.

It is usually protocol that the lender will send you a certified letter stating that your loan is in default. Included in the letter, the lender will note any penalties along with the unpaid mortgage totals.

If this has happened to you, it is important that you contact the lender and try to work out a plan in order to pay the bank back.

Just remember that banks are not in the business of owning homes; banks are in the business of lending money. That being said, remind yourself that banks do not want the house back! They simply want you to find a way to make your mortgage payments.

Foreclosure proceedings will cease if you, the borrower, bring the mortgage back to good standing. This is sometimes referred to as being reinstated. If this happens, there will be no further foreclosure actions. (Each state differs as to just how long they will allow you to bring the loan up to date, so be sure to inquire.)

After the lender has given you the allotted time to make the loan current, and the loan is still considered in default, there will then be a scheduled auction of the property. These auctions are generally held on the courthouse grounds in the county where the house is located.

There are times when the house sells for an amount more than the amount that is owed on the property. If this is the case, any additional monies that are profited must be used to pay other mortgages and liens.

If there is money left over from this process, then that amount of money will go to the foreclosed homeowner.

When will you be evicted?

On or about five days following the auction, (commonly called the Sheriff or Trustee’s sale) an eviction often takes place.

Following the auction, if there is still a balance due,you, the owner may still owe money on those unpaid debts.Some states differ from others, so be sure to inquire.

Have you heard of the Right of Redemption?

There are some states that allow the foreclosed homeowner to property to buy the property back, following the auction and eviction process.

ARIZONA Foreclosure Proceedings

Here in Arizona, foreclosure proceedings occur both in and out of court. If you are loosing your home to foreclosure in Arizona, you can expect approximately at least three months for the process to reach the end. This means the total time from the date the first notice of foreclosure sale is filed until the date of the auctioned sale of your home or property.

Who is notified regarding the notice of a foreclosure sale?

With any court foreclosures, the sheriff carries out the sale, which is about 45 days after the county clerk orders the sale. It is considered a public auction, thus anyone wishing to bid on the property, may do so.

Generally, the accepted bid must be paid to the sheriff no later than 5:00 P.M. on the day of or the day after the foreclosure auction has taken place.

After the sale, a certificate of sale is then issued. If the property is not abandoned at the time of the sale up to the next six months, this is known as the redemption period. If the borrower does not redeem the property, any secondary lender may do so within a certain amount of time.

In order to redeem the property, however, the total amount owed including any fees, must all be paid.

If there isn't anyone who redeems the property, the sheriff will then transfer the ownership to the winning bidder at the time of the foreclosure auction.

Concerning Out of Court Trustee Sales

Notice of the sale is given which includes the property description, date, time, place, etc. The auction notice is then recorded with the county.

The trustee mails the notice to all interested parties. This notice is sent out at three months before the sale date.

This notice will appear in any local newspaper at least once a week up to the fourth week. The last published notification shall appear no less than ten days prior to the auction.

No less than 20 days before the sale, the foreclosure auction notice is posted on the property along with the county courthouse.

The day before the sale is scheduled to take place and leading up to the sale, the trustee must provide the opening bid of the sale to anyone who inquires about the sale. If not, then the sale may have to be postponed.

Out of Court Trustee sales are carried out by the trustee or the trustee’s agent either at the property, the courthouse. Sometimes these sales are held at the trustee’s office.

These sales require every bidder to provide a refundable $10,000 (ten-thousand dollar) deposit in order to even bid on the property. The trustee keeps the deposit of the individual with the winning bid.

The winning bidder has until 5:00 P.M. by the next day to pay his/her bid price.

Following the sale, the trustee then transfers ownership of the foreclosed property within seven days. The proceeds of the sale are paid directly to the primary lender, then to any secondary lenders that may exist.

With Out of Court sales, there is no right of redemption for the borrower after an out of court foreclosure sale. If you reside in one of the mentioned states listed, the ever increasing number of bank foreclosures that are added to the list of foreclosures, without a doubt, impact the entire housing market.

In turn, this lowers the value of these homes in that specific neighborhood.

According to the San Francisco Chronicle, between 2004 to 2006, Americans borrowed $2.2 trillion dollars through attractive adjustable rate mortgages.

These adjustable rate mortgages were hard to pass up because of the low monthly payments that were offered.

However, all good things seem to have to come to an end and they certainly have. Experts explain that these adjustable rate mortgages need to reset themselves in order to make up for the difference through higher rates, which of course means a higher mortgage payment.

You don't need to be an expert in real estate to figure out that when the banks significantly raise someone's mortgage payment, you are going to see not only Arizona foreclosures, but foreclosures throughout the country.

It is also predicted that as these mortgage loans reset, 1.11 million homeowners will lose their homes. This prediction was reported following a study completed by First American CoreLogic, a firm that documents home mortgage risks.

Free foreclosure tips are available through HUD. If you are wondering just how many Arizona foreclosures occurred, the numbers may alarm you, as they did me.

According to Bank Foreclosures, between 2005-2006, the total number of Arizona foreclosures alone recorded 2,573 properties that were foreclosed upon, an increase of 27 percent.

Bank foreclosures are at an all-time high, and if you are a real estate investor, you are likely to to find foreclosed property listings all around the state, as no city is immune from Arizona foreclosures. Tempe, Phoenix, Mesa, Chandler, Tucson, Flagstaff, Page, Apache Junction, Sun City, Casa Grande, the list goes on with cities with foreclosures named in Arizona.

If there is any good news about foreclosures in Arizona, some believe that 2007 doesn't look as bad. Some predict that there will be less Arizona foreclosures than in previous years. Some disagree, however, as it is their belief that the worst is yet to come. Only time will tell. Let's all hope that Arizona foreclosures as well as foreclosures in the remaining 49 states, decline in numbers.

If needed, foreclosure counseling is also available through HUD.

If you would like additional information on Arizona foreclosure laws, you can find it at Arizona Foreclosure Law.

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