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NEIGHBORS UNITE - let's talk about all ***ARIZONA*** foreclosures and timeline related information

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by WalkingTheTalk, Oct 17, 2011.

  1. WalkingTheTalk

    WalkingTheTalk LoanSafe Member

    Being subscribed to as many ARIZONA related threads as I can find thought it best to start an actual thread on the subject for everyone from this region to post. Makes it easier for anyone searching to find Arizona SPECIFIC information to help them on their journey.

    And for everyone from our state (neighbors in other words) to be able to make this transition as easy and INFORMED as possible!

    My husband and I decided to miss our first payment in June of this year. Don't know exactly where we are in the process but it doesn't seem like anything has happened except the NOI and lots of calls to (both) our cell phones and google voice number. We have atleast 3-4 more foreclosures going on within a 1 block radius in our neighborhood so we also don't know if because of that the banks won't slow one or more of them down to delay them all hitting the market at the same time. As of right now it seems that the foreclosure process in Az is taking about 6-7 months as evidenced by foreclosureradar.com website and what people from AZ have been reporting on this forum.

    Also starting to look around for a place to rent and as a heads up it seems that people need to be careful when renting a new place that you don't rent from someone else who is walking from their property (your future landlord in other words) and who might WALK AWAY with all your DEPOSIT money !!!!!
  2. RightOnTime

    RightOnTime LoanSafe Member

    Hello! I'm still early in my 'surrender'. First missed pmt was 9/1. 1st with Greentree and 2nd HeLOC with Chase.

    Filing Chapter 13 later this month. Looking to surrender home in the BK, and hopefully stay rent free to save some emergency funds for the next 5 years of our BK. I hear that filing BK can prolong the foreclosure. Someone on another forum said her Ch 13 BK took 1 year to confirm. That seems really long to me, but we'll see!

    Glad to see an AZ thread on here!
  3. tstrong2000

    tstrong2000 LoanSafe Member

    I very much appreciate this thread. I am in Phoenix and stopped paying my mortgage on 8/1. Received my NOI Oct. 2 and have until Nov 5th to get caught up. The same day I got an email from Zillow telling me that my home value had dropped another 5.9% last month! Bought for 284k and now is worth around 135k. FHA loan with 272k balance. With a 3% appreciation per year starting next year, I will be back to 281k value by 2037! No guilt for decision here. Just resolved to do the best that I can for my wife and myself in the long run. Don't want to mess with a short sale and have to bow down to the bank for permission to get out of this mess. I know the hit on my credit. I will take that versus 27 years of paying into something that will not be worth what I paid for it in 2008.

    3-5 years from now I will look closely at the market and decide with my brain versus my heart on whether to get back into another mortgage or not. In another thread I offered to get together for a dinner somewhere if people in the Phoenix area have any interest. Offer still stands if anyone on this thread has interest. I really appreciate the collective wisdom on this site and all of the members.
  4. RightOnTime

    RightOnTime LoanSafe Member

    Received NOD today. Total shocker! I'm less than 60 days past due. Darn GreenTree. I called them over the weekend to notify them i've retained a BK attorney. They don't waste any time!
  5. DrDrew

    DrDrew LoanSafe Member

    Tucson here... My timeline... Last payment 2/1... NOD 7/6... Sale date set for 11/17/11 (YAY!)... Home bought in 2009 for $237K... Current Zillow value $141K... I tried to do a short sale, listed at $170 then $160 with a total of three people looking at the place over a 4 month period.
  6. RightOnTime

    RightOnTime LoanSafe Member

  7. olivianphoenix

    olivianphoenix LoanSafe Member

  8. phoenixsuns

    phoenixsuns LoanSafe Member

    Deadline for foreclosures


    Does anyone know who is currently in the foreclosure process what happens if you don't foreclose within
    this 2012 year? I say this because the "Mortgage Debt Relief Act of 2007" is only good until the end of
    the 2012 year. This is the law that was passed in 2007 where the cancellation of your mortgage debt from
    a short sale or foreclosure will not be taxed. After this year everything will be taxed. I hear you need the 1099-C
    tax forgiveness form dated by December of 2012 from your lender or you will be taxed. My main concern is if
    you start missing your payments in Jan of 2012 and the foreclosure process takes more than 12 months are you
    completely screwed or will the IRS work with you if the process is dragged into the early months of 2013?
  9. GustavsenB

    GustavsenB LoanSafe Member

    Thanks for starting the thread. I've been searching for and reading everything I can find relating to AZ foreclosures. I posted a link this morning about a push for a change in the non-recourse statutes here. Seems that the deep pockets just can't stand the idea of us underwater homeowners walking out and leaving them upside down on their foreclosed asset. I personally am not walking because I'm upside down... I'm walking because several things have changed in my financial life and I can't afford to stay at all. I wouldn't ever get a mod down to 33% of what I'm paying now (which is what it would take to be able to afford it with any sort of living standard) so I'm stuck walking. I am underwater bigtime though... owing just over $297K on a place that is worth somewhere probably $140-160K. Thats anywhere 180-210% upside down LTV. Last payment was in October, so first missed was 11/1/11. I just hope Green Tree goes after this fast and takes the house. I have been paying back for 5 years, over $130K paid on time to first and seconds... so if they eventually sell at market, Fannie shouldn't be taking that big of a hit (not that I'm crying for Fannie).

    Planned Arizona bill lets banks go after 'underwater' homeowners who bail
  10. phoenixsuns

    phoenixsuns LoanSafe Member

    GustavsenB....thanks. It's makes sense in your case to walk. Plus this is really the last opportunity to take advantage of the tax relief. Let me know how long yours take until you get your "notice of trustee" sale date. You will know the date when you receive a notice on your door down the road or at Maricopa County Recorder's office website. I read one thread and it appears Green Tree moves quickly (6months). Mine is with Seterus/Aurora Loans which is backed by Fannie Mae so we'll see how long my process takes.
  11. GustavsenB

    GustavsenB LoanSafe Member

    Phoenixsuns - I'll post back with updates as they come. This has been such a stressful couple of years for me and my family... first making the huge payments and draining savings after losing an income... then, realizing that we just can't do it and we're going to lose the house... now waiting with no control over the FC process. I don't plan on contacting Green Tree (1st) or Citi (2nd) to delay the process or play any games with them. I just want them to enact their rights of remedy and foreclose so that I can get on with life in a new start. I'm actually down the road in Pima County, so I've practiced searching the site to monitor any recordings against my name and property. Good luck to you and all others out there going through this mess.
  12. phoenixsuns

    phoenixsuns LoanSafe Member

    GustavsenB....yes your lender will give you the run around. This is all I've heard in many blogs I've read. Have you received their
    annoying daily phones calls yet? If this starts you can write a "Cease and Desist" letter to your lenders and by law they have to stop calling you. Mail by certified mail with a return receipt. Good luck to you. Things will look up.
  13. kikimonkey

    kikimonkey LoanSafe Member

    Looks like I found a good thread. We just moved from Cave Creek, AZ to Reno, NV for a job transfer. We "had" renters all ready to go in our home. They bailed. Now, even with rent, we will still be upside down by $500 a month. We paid $300K, we would be lucky to get $220K. Our "friend" who is a realtor is really pushing her "client" on us to rent our home and then short sale it. She also wants us to use her attorney (dont know why). I posted on the "ask the attorney" link and was told, do not need an attorney. So I told her this. Bottom line, she wants the attorney to benefit her no big surprise there. We are really leaning toward just walking.

    I did not pay our taxes (they are not linked to payment). Our payment on house is due in 2 days, it is a Chase loan. We are not going to make. Now, my "friend" said we need to continue to make homeowners association dues? We are making the home insurance payments, the homeowners association seems silly.

    So what happens next. We just watch Maricopa recording and pray it forcloses by Dec 2012? From what I have read so far, we want to avoid the phonecalls? For forclosures, do we need an attorney? We just want peace. This move/job change have been stressful enough.

  14. GustavsenB

    GustavsenB LoanSafe Member

    Phoenixsuns... thanks. Yes, I have been receiving calls from both lenders. GT calls often at work, Citi calls mostly at home but has contacted work a few times and sent a couple letters. I received the latest letter from Citi yesterday saying that they have reported me now to credit agencies. I haven't subscribed to any sites to monitor my score, but I have a general expectation that the first hit will be around 100 points, with an eventual slam of about 280 total on my FICO. Really stinks, but 840 in early 2011 will probably be under 600 by spring. I have drafted a cease and decist letter for each lender, but have not sent yet... thinking that I might do that soon because the calls at work are starting to become problematic.

    kikimonkey... welcome to the thread. The renting/short sale thing can be frustrating and from what I've found in my research and speaking with my attorney and realtors, the process many times does not work out for the seller. It can work, but there are so many hoops to jump through and opportunities for things to go badly that I decided it was not in my best interest to prolong the process and attempt a short sale. I'm too far underwater to get a sale that would satisfy the banks on any reasonable percentage basis from what I've seen. I've resigned myself after attempting modifications in the past that it's just not worth trying to negotiate such an upside down deal with the banks. As for what to do... I personally decided that I would consult a lawyer and have him review all of my original loan docs and confirm my protections under state law. (For a couple-few hundred bucks, it's probably worth it to do some research, find a RE attorney that you like and get their input... you'll also have a go-to contact established in case things run amok along the way). Once I had his input on the docs and a good discussion about all of my options and their implications, I decided to let the house go. I was advised to keep insurance and HOA dues current, live in the house and take care of it until the bank decides it's time to go. I will wait for the certified notices from the lender(s), and especially for the notice of trustee sale. Once that NTS is scheduled and recorded at the county, I'll have the 90 time clock ticking to start preparing for a move. I plan on residing at the house until the auction date passes (they can postpone the date many times) while saving what I can toward my move to a new place. When the sale is done, I expect that I will be immediately contacted by either the bank (REO) or the new owner (if sold at auction) to set the vacate date. I will keep the house maintained and clean, and hopefully get a cash for keys type offer to help cover the moving expense. Other than the pain of dealing with intensifying contact attempts and the pain of leaving the house, I hope that this will be a fairly straight forward process. I'm staying conservative on this and not playing any games with the lenders... I don't want to give them any reason to jerk me around. Just want it over with. As noted above, I probably will send the cease and decist communication letters just to stop the constant calls. Once those are received, I'm sure the lenders will know what's going on and just push forward with foreclosure. Certified notices and watching the county recorder's office should keep me up to date until move day. I hope that helps with some info. Good luck!
  15. kikimonkey

    kikimonkey LoanSafe Member

    GustavenB- I have been keep HOA current and insurance are current. I may give my friends attorney a call later, just to have him review our docs. The short sale seems to benefit everyone else, but us. We just want to be done with the house. We left it in great condition. Our payment to Chase is due tomorrow (weds), not going to make it.
  16. phoenixsuns

    phoenixsuns LoanSafe Member

    To: kikimonkey

    Yes you have to continue to pay your HOA fees until you are no longer the owner of the house (notice of trustee sale date) is when you are no longer the owner of the home. I hear the HOA can come after you for this if you don't pay. Attorney is always best to consult with if you want the peace of mind and pay for their knowledge however you don't need one. If you are going to foreclose I would start now and hope it closes by 12/12. Mostly likely it will. I'm not sure what happens if it extends into 2013. I would call the IRS and ask. Good luck to you.
  17. Cat Damiano

    Cat Damiano Mortgage Wars


    Your agent is correct about the HOA dues. Your HOA dues are assessed against the property and are also a personal debt. They actually have priority over your lender's loan under the rules relating to priority. What I mean by that is the HOA dues are being charged pursuant to the Covenants, Conditions, and Restrictions (CC&R) that were recorded before any of the condo units were sold. But, virtually all CC&Rs contain a specific subordination, where their prior lien is eliminated for unpaid dues that existed before your first loan is foreclosed. Dues that accrue after the foreclosure sale become the obligation of the purchaser at the foreclosure sale (usually your lender).

    So, HOAs can and often do attempt post-foreclosure collection against the foreclosed former owner. That is why I recommend that you pay them even if you are going to walk and let the lender foreclose. Mitigating this expense is the fact that I recommend that you remain in the property until after the foreclosure.
  18. kikimonkey

    kikimonkey LoanSafe Member

    I will just pay the dues then for the year and obviously insurance. I am going to have another friend check on the house as she has a key. Do I need to maintain landscaping? I still have electric on. I guess I could also turn the remaining utilities off? Sorry to be asking so many questions. Just hard not physically being there. We did not have a choice in this matter.

    Thanks for all the advice. What happens from this point? I know it takes 30 days to hear something. We just sit and wait? Seems too easy...maybe it is the lack of any control that has me freaked out.
  19. Cat Damiano

    Cat Damiano Mortgage Wars

    From this point the waiting is the hardest part, but you have to maintain contact with the lender, don't wait for them to contact you with updates.
  20. kikimonkey

    kikimonkey LoanSafe Member

    Do I want to tell them we are not making any payments, or wait for them to contact us? What type of communication should we be keeping? Sorry, not to sound like an idiot, this is just all new to me.

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