Lenders can begin the foreclosure process when a property owner becomes delinquent in their mortgage payments. Most lenders offer the borrower a grace period (with fees attached) to make up a late payment. Foreclosure will likely begin after three months of delinquent payments, with the lender issuing a Notice of Default. Foreclosure can be carried out one of two ways: Through the court system (Judicial Sale, allowed in all states) or facilitated completely by the lender (Power of Sale, allowed in 29 states).
Before things reach this point the borrower should seek out the services of a foreclosure attorney. The attorney can help delay or even stop foreclosure from proceeding. A foreclosure attorney can offer delay tactics like requesting the original promissory note from the lender. Since a mortgage can pass through several lenders, this document can sometimes be difficult to locate. .
The attorney can also negotiate with the lender to modify loan terms, allowing delinquent payments to made good. Other options to avoid foreclosure include a short sale (selling the property for less than is owed; requires lender’s approval), or a Deed-in-lieu (signing the deed over to the lender in exchange for non-foreclosure). In some cases, bankruptcy might be a viable option to delay or stop the foreclosure process.
If a borrower in Tempe, AZ is having trouble paying their mortgage, a foreclosure attorney should be sought immediately upon the first sign of delinquency.