Phoenix Foreclosure Prevention Attorneys
Preventing foreclosure and saving homes in Phoenix, AZ, and the Greater Valley Area. Call (602) 466-9631 to learn more today.
Facing Foreclosure in Phoenix? Find a Plan That Works for You
Foreclosure is a daunting experience, especially since your home is one of the most valuable investments you will ever make. It takes a lot of hard work to buy a house, so if it is threatened by foreclosure, it’s natural that you’ll want to do everything you can to protect it. But you may not know where to turn for help — and there are some pretty unscrupulous people out there who will pretend to help you when they’re really just trying to rip you off.
When facing foreclosure, your best bet is to find a reputable Phoenix debt relief attorney who will sit down with you and review all your options. Debt relief can halt foreclosure and put an end to garnishments and harassing phone calls from creditors.
Whichever debt relief option you choose, your attorney will make sure all your paperwork is filed correctly and can arrange an affordable payment plan so you can stop worrying about your finances. At Hilltop Law Firm, we have decades of legal and financial experience. We offer zero-down payment options and will help you find the best strategy to avoid foreclosure and save your home. Call (602) 466-9631 to schedule a FREE virtual consultation today. Our attorneys will be happy to speak with you in our office, or we can arrange an easy Zoom meeting.
Loan Modification
Foreclosure is a collection method that lenders use against borrowers who have fallen behind in their mortgage payments. If the foreclosure process is completed, the homeowner will be forced to move out of their house, and the property will be sold to pay off the remaining loan balance.
Most lenders prefer to avoid foreclosure if possible because it is a lengthy and difficult legal process, and banks usually don’t recoup the full value of the loan. Also, having too many foreclosures on their books can get banks into trouble with regulators.
After reviewing your financial situation, your debt relief lawyer may recommend loan modification, which involves negotiating with your lender to arrange lower payments, including loan forbearance, where the lender suspends or reduces your payments. Loan modification generally requires the borrower to make payments for a longer period of time. It may cost the borrower more in the long run, but it can help you save your home, and you won’t have to apply for bankruptcy protection. Lenders are much more likely to agree to a loan modification when an attorney is negotiating on your behalf. A Phoenix foreclosure lawyer can also ensure that the terms are fair and affordable.
Filing for Bankruptcy in Phoenix
Another way to prevent foreclosure in Phoenix is by filing for Chapter 13 bankruptcy. Chapter 13 bankruptcy will provide an automatic stay, putting an immediate stop to the foreclosure process.
Benefits of filing for bankruptcy include:
- Suspending a foreclosure
- Discharging unsecured debt
- Bill collectors must leave you alone!
With Chapter 13 bankruptcy, you will have 3 to 5 years to pay back overdue mortgage payments. A trustee will be assigned to sell off some of your assets to pay off your creditors, but you may be allowed to keep your home. Under Chapter 13 bankruptcy, you will have to agree to a payment plan.
The following types of unsecured debts will be discharged:
- Credit card
- Medical bills
- Utility bills
- Payday loans
Spotting Early Warning Signs: The First Steps to Preventing Foreclosure
One way to avoid foreclosure is to spot early warning signs of financial distress and act before it is too late. Some early signs that you might be at risk of missing payments on your mortgage include the following:
- Your credit cards are maxed out.
- You are only paying the minimum on your cards.
- You have applied for more credit cards after maxing out the ones you have.
- You have not been able to pay your bills on time.
- You are having to decide which bills to pay first due to financial stress.
- You have received notice of mortgage payment changes (such as increased interest rates, property taxes, or other factors).
In addition to financial indicators, it has been found that certain life-changing events are often associated with foreclosure. Major life events that may accompany or precede foreclosure include:
- Experiencing a major injury
- Contracting a serious illness
- Hospitalization
- Losing a spouse through divorce, separation, or death
- Losing your job or being placed on a reduced work schedule
Creating a Foreclosure Prevention Plan
As soon as you spot the early warning signs and know that foreclosure is imminent, take the time to assess your financial situation. Break down where your income is coming from and list every expense. You can use online resources to help you do this, such as this workbook from the Arizona Foreclosure Prevention Task Force.
After evaluating where your money is spent each month, develop a realistic budget that cuts back on extras. If needed, gather all members of the household and have a meeting to discuss the new budget and come to an agreement. Remind everyone that this is an emergency measure; if everyone works together, it won’t have to last forever. Get input on how everyone can help keep your shared home safe from foreclosure.
As part of the plan, look for new ways to make additional income. This could mean selling personal items or asking household members to take on additional jobs to cover costs.
Finally, the plan should be laid out against a structured timeline. Consider the due dates of your mortgage payments and other bills and compare this to the expected or newly planned income. Set targets for yourself on when each payment should be made to keep your home and financial condition as safe as possible.
The Difficulties of Losing a Phoenix Home
For most people, losing a home through foreclosure can be financially and emotionally devastating. All the memories, stability, and security you have felt can be wrapped up in those walls. The implications of finding new or temporary housing and dealing with relocation create additional stress and financial burdens.
Understanding Credit Implications
On top of emotionally challenging, foreclosure is a credit-impacting event. Unless a qualified foreclosure prevention attorney intervenes, a foreclosure will remain on your credit report for seven years. If your home is foreclosed on, your credit score could drop dramatically. According to FICO, a foreclosure can lower your score by 100 points or more if it is exceptionally high to begin with. Usually, the higher your credit score is, the further it will fall.
Building back your credit score may take three years or more. Some ways you can work on rebuilding your credit after a foreclosure include:
- Pay your bills promptly; don’t be late.
- Keep your credit card balances low and pay them down regularly.
- Create an emergency fund for unexpected costs; this will help prevent taking on future debt.
- Be consistent in managing your finances; credit repair takes time.
Experienced Help from a Foreclosure Prevention Lawyer You Can Trust in Phoenix
Cy T. Hainey and Samantha Hainey have decades of experience in the financial and legal fields. We’ll review your unique situation to find a debt relief solution that works for you.
We offer a free virtual consultation for all new clients. If you’re interested in a Zoom meeting, someone from the Hilltop Law Firm office will be happy to help you set up your virtual meeting in advance. Call (602) 466-9631 to learn more today.