If you’ve just received a foreclosure notice of default in Arizona and want to know what the heck it means, keep reading.
In its most basic essence, a foreclosure notice of default is a document filed by a lender to start the process of foreclosure. This happens when you are behind on your payments for your Arizona house.
The foreclosure notice of default (NOD) will be sent to anyone who has an interest in the property such as any other lenders or even contractors who are owed money for work done to a property will get a copy. The NOD must also be published in a newspaper and physically posted in a prominent place on the property itself. Although this can be really embarrassing to someone going through that, it’s actually a very important protection for you.
Back before US law required a notice of default, people were sometimes foreclosed on without any warning.
In fact, it’s happened even in the past few years – at least one bank has accidentally foreclosed on the wrong property and kicked people out of their house without due process or warning. It’s even happened around Casa Grande here in Arizona. That’s why the NOD is a very important step within the process that gives people with an interest in the property to step forward and claim their rights – before it’s too late.
If you’ve received a notice of default, don’t wait. Time is definitely of the essence, and you should take action.
Here are a few key steps you should take:
1) Stay calm and don’t panic.
This is probably the most important step you should take. Anyone facing foreclosure would be dealing with a lot of stress beyond just their property concerns. These situations don’t happen overnight, and they take a while to solve. You’ll get through it by practicing good coping techniques and taking good care of yourself and your family. Panic leads to bad decisions, so stay calm while looking for a solution.
2) Educate yourself.
If this is the first time you got behind on your mortgage payments and received a notice of default, learn everything you can about the process in Arizona. Knowledge gives you power and advantage so that you know what’s happening and what’s coming up next. Familiarize yourself with the terms and process. Once you’ve done your initial research, you can move on to the next step.
3) Gather your resources.
There are many non-profit and government resources available out there. We have free foreclosure resources too! You’ll also want good legal and tax advice along the way. Definitely don’t try to do it all yourself. This stuff is super complicated with lots of rules and legalities.
4) Learn your options.
We’re here to help you avoid foreclosure. We can buy your house directly and pay cash. We can also help with a short sale and even rent-back situations. Rent-back would be the best option you can choose because it will allow you to keep living in your home while you look for other ways to solve your concerns. There are many more options than you think.
5) Communicate.
Keep in mind that the banks or lenders involved don’t want your property. They want money, and what you say matters a lot. Keep communication lines open with your bank or lender. They may also provide you with options that would be helpful to you.