Foreclosure in Surprise>Question Details

gvaldezrn, Home Owner in Surprise, AZ

I live in AZ and need to move because my work is 70mile commute per day. We owe 233,000 on the home but appraises for at least 180,000.

Asked by gvaldezrn, Surprise, AZ Sun Sep 23, 2012

Can I foreclose by the end of the year if we stop paying our mortgage now? If not what would our penalties be?

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18
We completed a Short Sale on one AZ home, the owner still made $190,000 per year, never went late on payments and has already purchased another home.

I would be cautious regarding advice coming in from out of state, the laws pertaining to deficiency etc are based on state law.
1 vote Thank Flag Link Sun Sep 23, 2012
GValdez,

Have you considered leasing your current home and getting an apartment closer to work? Apparently you are either going to rent a place closer to work anyway or stay with friends or family since you know a foreclosure will prevent you from buying another house for several years.

I strongly encourage you to explore all options before you consider a foreclosure as the only option for getting to an area closer to work. As part of this exploration, I recommend seeking the counsel of an attorney and financial advisor.

A short sale is not an option based on the limited information you provided. An unpleasant communte is not a "qualifying hardship." A simply owing more than the amount needed to pay off your mortgage will not qualify you for a short sale.

A deed in liue of foreclosure will also be an unlikely option because again, you have not mentioned having a financial hardship and your mortgage company will review your financial position before agreeing to a deed-in-lieu. Not wanting the home any longer will not be an acceptable reason.

There are so many more factors that you need to carefully consider before considering a foreclosure for non-financial, non-hardship reasons that I/we can not fully outline in this forum. (i.e. your mortgage company can possiblly sue you for the difference if they foreclose and sell the home for less than you currently owe, your credit card companies can raise your interest rates or cancel your accounts once the negative impact of your foreclosure is reflected in your FICO score, you will pay ridiculously higher interest on car loans, you will be prohibitied from working for certain employers who review credit scores as a condition of hire, and on and on.)

I sincerely hope you consider doing more research before doing this to yourself....
1 vote Thank Flag Link Sun Sep 23, 2012
Your commute is a very reasonable hardship to present to the bank without going late on the payments. I have completed other short sales with situations like yours successfully and the borrowers have not gone late.

Lets run with your work and the school and make it happen!
1 vote Thank Flag Link Sun Sep 23, 2012
If you were to stop paying your mortgage now (which I wouldn't recommend) you would need to miss 6 consecutive payments before the actual foreclosure date. Once you fall behind 90 days, your lender will instruct the Trustee of the Deed of Trust to file a "Notice of Trustee's Sale". The sale date will occur on the 91st day following the notice. This is the normal process of foreclosure. However, not all lenders are following these timelines because they don't want more foreclosures on their books. Some lenders are pushing the foreclosure dates out in the future to delay the foreclosure. They (your lender) would rather you complete a short-sale. In some cases, depending on who your lender is, they may offer you money (Financial relocation assistance) to complete a short-sale.
1 vote Thank Flag Link Sun Sep 23, 2012
Banks will typically start the foreclosure process after several late payments and the trustee sales are 90 days after the bank issues the foreclosure date. Of course you will want to confirm this with an attorney to find out your options and you would want to discuss with an accountant as well. They will be able to go over the legal, deficiency, and tax concerns of a foreclosure. You can also discuss with them a short sale or deed in lieu of forclosure. Another option would be to keep the home and rent it out until you are no longer underwater. Should you decide to short sale the house or rent the home, I would be happy to help you. I have worked with hundreds of clients in your situation and I have extensive recommendations on my profile so that you can see the quality of my work. Thanks for the opportunity to work with you!
1 vote Thank Flag Link Sun Sep 23, 2012
I doubt if a bank would foreclose by the end of the year if you are current. The foreclosure process is at least 90 days from the time the bank starts the process and most banks don't start the process for a few months.

We might have a better change doing a short sale of the home and trying to get it done by the end of the year for you. Would depend on the house, the bank or banks etc. The sooner we start the sooner we can find out what is the best for you.

We offer free consultations and the process of short sale does not cost you either. Your commute is a reasonable hardship.
1 vote Thank Flag Link Sun Sep 23, 2012
If you would like to speak about your situation, please call 623-512-1248. I am Owner/Broker of Arizona West Realty in Surprise. Many things to consider and discuss.

Have a great day!
0 votes Thank Flag Link Mon Sep 24, 2012
No, under the law the Bank has do do a Notice of Trustee's Sale, which gives the property owner a 90 day "cure" period before they can take the property back. If you want to dispose of the property, the safest way would be to short sale. File the necessary paperwork with the Bank, request the short sale and the forgiveness of the debt. This is better financially for a homeowner long term as a foreclosure would prohibit you purchasing a new home FHA or Conventionally for 5 or more years. With a short sale, that term is reduced to two years. I am happy to discuss the process with you further. Please email me at gsanfillippo@hcdslaw.com or contact my cell: 480/570-3444. Thank you so much and I look forwarding to speaking with you!

Gina Sanfillippo
Solutions Real Estate
0 votes Thank Flag Link Mon Sep 24, 2012
I have been "realtor shopping", have not signed any paperwork yet. I am looking for someone who is highly motivated, and is a great networker!!
0 votes Thank Flag Link Mon Sep 24, 2012
I would love the opportunity to work with you. There is no consultation fee and all fees are paid by the bank. I have extensive experience in the short sale market and am happy to answer any questions you have so you can feel comfortable in the process. References from previous clients are available to you as well. Please contact me. Email: gsanfillippo@hcdslaw.com or cell: 480/570-3444.
Flag Mon Sep 24, 2012
Are any of you proactive in the Surprise area? I am interested in a realtor whom can sell "surprise" my home is lovely, however far!!
0 votes Thank Flag Link Mon Sep 24, 2012
We work with one of the best Real Estate law firms in the State on Short Sales, you might want to have a consultation with them to explore your options.

It might be $250.00 well spent to see where you actually stand and what options exist. Would be glad to share with you.
0 votes Thank Flag Link Mon Sep 24, 2012
Good Morning:

You may wish to go to knowmyoptions.com; a website created by Fannie Mae to help people in your situation. There is a section titled "Avoid Foreclosure" which may be appropriate.

Bill Parker
NMLS #223607
602-565-3646
0 votes Thank Flag Link Mon Sep 24, 2012
Your best option is to consult an attorney that can advise you on tax consequences if any by either short sale or foreclosure. There are many factors that will cause concern for the end of the year or not. Such as primary residence, purchase money loan, and any refinance or equity loans that may have been taken out.

Start by contacting your lender's loss and mitigation department. You may also contact a counselor through HAFA. Visit http://www.makinghomeaffordable.gov for information and options regarding your situation.

The more time you spend researching this, the more you'll be better prepared. Every situation is different, so don't group yourself into another's experience you've read on the internet.

Hope that helps best of luck to you.

Evan
Surprise, AZ
0 votes Thank Flag Link Sun Sep 23, 2012
I strongly recommend seeking the counsel of an attorney and financial advisor.
Whatever you decide to do, feel free to contact me should you require assistance from a real estate agent that lives and works in your area.
Web Reference: http://www.GabbySandy.com
0 votes Thank Flag Link Sun Sep 23, 2012
I have been researching this for the past 2 years we have been here for 3. But my daughters schooling was kind of the last straw. This whole situation is not good for anyones well being
0 votes Thank Flag Link Sun Sep 23, 2012
I have considered leasing however the competition out here is fierce. Foreclosure looks nice right now, we are both RN's and I'm not concerned with being out of work (knock on wood :-) )
0 votes Thank Flag Link Sun Sep 23, 2012
I understand, I know financially we don't qualify, our income is around 10,000 a month, however its depressing being out here that far , and the local school denied my daughter enrollment because they didn't have room for her. So, I was forced to let her live with family monday through friday. Its best for my family to walk away from this. I am more then willing to rent, and I do have family to stay with if needed. I am only 25 so I'd rather do this sooner then later.
0 votes Thank Flag Link Sun Sep 23, 2012
Thanks all, so to do a short sale do payments need to go into default, I feel very strange not paying my mortgage because we have been here 3 years and never been late. However, we have to move closer to work and my daughters school.
0 votes Thank Flag Link Sun Sep 23, 2012
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