Before foreclosures in Fountain Hills AZ happen, the pre-foreclosure phase proceeds. It is important to understand the fountain Hills AZ real estate market if you own or hope to own a house there. If you want to buy a house, we have amazing Fountain Hills homes for sale. You’re sure to find something perfect for you amongst our homes for sale in Fountain Hills AZ.
Let us talk about foreclosures in Fountain Hills AZ, starting from the pre-foreclosure phase.
Foreclosures in Fountain Hills AZ: the pre-foreclosure phase
The pre-foreclosure phase begins the moment you fall behind on your payments. It is the period just before a foreclosure officially begins. Although you may sometimes find people referring to the period before a foreclosure sale happens as “preforeclosure,” too.
During the pre-foreclosure phase, your servicer may charge you different fees, like late charges and inspection fees. They are also expected to inform and educate you on the different ways to avoid foreclosure as well as send you a pre-foreclosure notice also called a “breach letter.”
Some of the fees the servicer may charge during preforeclosure include:
- – A late fee: (a fee you’re charged every month you miss a payment after a grace period of about ten or fifteen days). You can find out the late fee amount and the grace period for your loan by looking at your monthly mortgage statement or the promissory note you signed.
- – Appraisals
- – Property preservation costs: these include yard maintenance or winterizing an abandoned home.
Laws on Federal Mortgage Servicing and Foreclosure Protections
According to federal mortgage servicing laws, in the case where the property about to be foreclosed is your primary place of residence, the servicer is mandated to contact, or attempt to contact, you via phone to discuss options such as a loan modification, repayment plan, or forbearance, within 36 days after you miss a payment and within 36 days after each following delinquency.
The servicer has to inform you in writing, no later than 45 days after missing a payment, about loss mitigation options that may be available to you and appoint personnel to help you try to work out a way to avoid foreclosure.
The federal mortgage servicing law also prohibits dual tracking (pursuing foreclosure while a complete loss mitigation application is pending).
What Is a Breach Letter?
A breach letter is a notice sent by the lender informing you that the loan is in default before the lender can accelerate the loan. This is a provision made available by the deeds of trust. The breach letter gives you a window of time to find a way out for yourself either by curing the default, or selling your house to a cash buyer and avoiding foreclosure.
Selling your house to a cash buyer is an option that comes with a lot of speed and ease. There are no inspection or appraisal contingencies and you’re sure of a fast close.
The foreclosure process
In case you’re wondering when foreclosure can start, according to federal law, the servicer should not begin the process of foreclosure until it’s 120 days since you fell behind on your payments. This is subject to a few exceptions. (12 C.F.R. § 1024.41). This period of 120 days gives you a window of opportunity to submit a loss mitigation application to the servicer and make other decisions that are best for you.
In Arizona, when you default on your mortgage payments your lender may foreclose on your house using a judicial or nonjudicial method.
What is a judicial foreclosure, and how does it work?
The judicial method begins with the lender filing a lawsuit asking the court for an order permitting a foreclosure sale. If you fail to respond with a written answer, the lender automatically wins the case.
If you choose to defend the foreclosure lawsuit, however, the court will review the pieces of evidence presented and determine the winner. If at the end of it all, the lender wins, the judge will order your home to be sold at auction.
What is a non-judicial foreclosure, and how does it work?
In the case of a non-judicial foreclosure, however, everything is done out of court but your lender must complete the out-of-court procedures described in the state statutes. Once this is done, the lender can sell your home at a foreclosure sale.
Many lenders go for the nonjudicial process because it’s faster and less financially demanding than litigating the matter in court.
The most common Foreclosures in Fountain Hills AZ are non-judicial.
What options are available to you?
If you are facing foreclosures in Fountain Hills AZ, then you may already know that you have limited options. One of the best options available to you would be to sell your house to a cash buyer like us. You can sell your house for a very good offer with Tgaz Investments, LLC if you foresee a foreclosure or if you need to move somewhere else and you need to sell it on time. We will pay cash and we buy it in “as-is” condition without repairs or fixing.
You also have no worries about costs because we will potentially save you thousands of dollars in fees, expenses, and closing costs.
With our offer, you do not have to keep worrying about joining the ranks of houses for sale in Fountain Hills. We have what you need. Act now, before your house joins the list of homes for sale in Fountain Hills AZ.