Updated: May 21, 2022
If it’s gotten to the point where the bank is threatening to foreclose on your house, you might feel like you’re at the end of your rope – mentally and financially. The good news is that you still have an array of legal options at your disposal. Many of these fixes are only stopgaps to temporarily stop foreclosure actions against you, but if all you need is a little breathing room to get caught up on your mortgage, then you should consider the following options.
The lender didn’t give proper notice.
State law gives you certain protections and affords you warnings before your lending institution begins foreclosure proceedings against you. One of the more notable protections is that homeowners must receive a notice from the foreclosure servicer (sometimes called a “trustee” in Arizona) notifying you of the bank’s intention to conduct a non-judicial trustee’s sale.
The state of Arizona is only required to send you one letter before foreclosing. This letter is referred to as the notice of trustee’s sale. The trustee in charge of the foreclosure process also must advertise the notice of sale in local newspapers and on the property itself.
Filing for bankruptcy
This is obviously a big step, and one that will have ramifications on your financial situation for a few years, but one you should consider if you want to hold on to your biggest asset. Chapter 7 bankruptcy can temporarily halt the foreclosure process for as much as 65 days after your filing, but it cannot permanently stop the process because mortgage delinquency is considered a secured debt. Qualifying for Chapter 7 bankruptcy is somewhat difficult, though, and you should consult with a professional to determine if filing for bankruptcy is the optimal choice for you.
You are active-duty military
The Servicemembers Civil Relief Act provides protections for military service members (and some reservists and National Guard members) in civil matters, most notably in foreclosure and eviction defenses. Except in rare cases, lending institutions are forbidden to issue a foreclosure on houses of members of the military while they are on active duty. To be eligible for this, however, you must have taken out the mortgage loan before you were activated.
Call Monahan Law Firm
Getting foreclosed on is not your finest moment. Just because you get that notice in the mail, though, doesn’t mean all hope is lost. Our law firm has experience dealing with foreclosure defenses, and we want to be the ones fighting for you. To get started, please call us at 623-385-3190.