Do you have houses for sale in Deer Valley AZ due to an impending foreclosure?
Foreclosures are unpleasant experiences for those involved. For the lender because they have to put up with the cost of recovering the house and looking for a buyer. And for the borrower obviously, because they’re losing their home.
We’ll pause here to say that if you have any homes for sale in Deer Valley AZ, we’re ready to buy from you and we will pay cash too. Also, we are direct, so there are no fees or commissions. There are no inspection or appraisal contingencies either.
Now back to foreclosures, what are they and how do they work? Understanding foreclosures is key to avoiding and even getting out of it.
How do foreclosures in Arizona work?
Generally, there are three kinds of foreclosure. Two are more widely known and used.
The three are judicial, non-judicial, and strict foreclosures.
The types of foreclosure processes
The judicial foreclosure starts when a court proceeding kicks in after the lender has filed a lawsuit against the borrower. What follows the proceeding is the property being sold or auctioned.
A non-judicial foreclosure, on the other hand, as the name implies, takes place outside of the court. The lender informs the borrower that the home will be sold if they don’t catch up on their payments. The borrower is given a window to get that done (get up to date with their mortgage payments), usually about 30 days.
If they fail to meet up with the amount due, then the property joins the list of houses for sale in Deer Valley AZ. This is often the kind of foreclosure that is carried out in Arizona before a house is officially put on the list of houses for sale in Deer Valley AZ.
A strict foreclosure also starts with a court proceeding, but in this case, the lender takes the property with no auction or sale. This kind of foreclosure is not allowed in most states.
In the judicial foreclosure, creditors (in this case, your lender) must adhere to the prescriptions of the Fair Debt Collection Practices Act and its requirements on how and when a borrower should be informed about the proceedings.
Non-judicial foreclosures, however, do not have to follow the Fair Debt Collection Practices Act according to a ruling by the U.S. Supreme Court in 2019.
Apart from the FDCPA, there are other federal laws that require lenders (in both judicial and non-judicial foreclosures) to work with borrowers who find themselves in tough financial situations and are thus having trouble making their mortgage payments. According to this rule, your lender may help you find a solution.
Why do foreclosures happen?
The main reason for foreclosures is a loan default – when the borrower stops making payments.
Generally, the foreclosure steps are:
- – The borrower misses their payments. This must have gone on for up to three consecutive months.
- – The Lender contacts the borrower to remind them after each missed payment.
- – If the debt is still not settled, the lender sends a notice of default, posted with the county clerk in the county where the property is, declaring its intention to sell the property. Here, the foreclosure process officially begins.
- – Foreclosure usually lasts about 120 days to nine months. The borrowers have a right to ask for extra time, by challenging the process in court to slow down or stop the foreclosure process.
- – Auction comes next after the foreclosure is complete. The house is sold at auction, and the bank keeps the proceeds.
– Post-foreclosure is the period after the bank possesses the house or it is sold. During post-foreclosure, the borrower has to leave the house. They are evicted.
Avoiding a foreclosure
If you have any houses for sale in Deer Valley AZ, we’re ready to buy from you. Let us know about any foreclosure Deer Valley AZ homes for sale and we will take it up from there.
We buy as-is, so there is no need for repairs and fixing. We also ensure a fast close and will save you thousands of dollars in fees, expenses, and closing costs.