In Arizona, consumers lose their homes through the foreclosure process due to mismanagement of their debts. Under federal lending laws, the creditor starts the foreclosure process once the consumer is ninety days delinquent. However, these same laws protect consumers against predatory lending practices that lead to this action. Local attorneys prepare consumers to fight against Foreclosure Glendale AZ through legal strategies.
What Happens if the Foreclosure isn’t Stopped?
A successful foreclosure allows the lender to take possession of the property. The creditor sells the property through an auction to collect the outstanding balance of the mortgage. Any balance left over becomes the immediate responsibility of the borrower. The creditor retains the right to conduct further legal action to collect this balance.
Meanwhile, the consumer faces additional negative listings on their credit report. Their credit score plummets and they face difficulties acquiring any further financing for another property. The foreclosure remains on their credit report for up to ten years.
Mortgage Loan Modification
Mortgage loan modification is performed to achieve better terms. The attorney identifies any predatory lending practices in the mortgage loan contract. Essentially, they acquire a more affordable interest rate and shift any overdue balances to the end of the mortgage. This action eliminates late charges and delinquent mortgage payments.
Chapter 13 Bankruptcy
This repayment plan stops foreclosure through an automatic stay. The stay is enforced for up to five years. The consumer submits payments based on a plan created by the court. They may include their mortgage loan in their claim to prevent additional legal action by creditors.
Chapter 7 Bankruptcy
This option allows the consumer to sell assets and property to settle debt. It provides an automatic stay for up to six months. Through this liquidation process, the consumer could pay off their mortgage loan completely.
In Arizona, consumers stop the foreclosure process by taking immediate action. An attorney helps them choose the most advantageous method for stopping this process. These choices include loan modification and bankruptcy. These actions reduce the negative impact of foreclosure. Consumers who need help with Foreclosure Glendale AZ should contact Asheton B Call or Browse the site for more information.