Behind on Your Mortgage in Arizona? What to Do Before Foreclosure Starts

What Arizona homeowners should do after missed mortgage payments, especially when substantial home equity may provide another option.

Arizona homeowners reviewing mortgage and home equity options

Being behind does not mean you are out of options

A homeowner can be $15,000 or $25,000 behind and still have $100,000, $200,000 or more in equity. If you want to keep the home, understanding that difference early can matter.

Do not wait until a foreclosure sale is around the corner

Start by finding your approximate home value, total liens, the current cure amount and your approximate equity. Also determine whether a Notice of Default or trustee-sale date exists.

Having equity and having cash are two different things

A $625,000 home with $410,000 in total liens has roughly $215,000 in equity. If the owner needs $22,000 to catch up, the immediate problem is liquidity, not necessarily lack of assets.

Traditional financing can become harder after missed payments

Banks and credit unions generally consider credit, income, debt-to-income ratios and recent payment history. The late payments that created the need for money can make a HELOC or refinance harder to obtain. Private financing may evaluate the property and available equity differently.

What if the mortgage company already offered other options?

Repayment plans, modifications or forbearance may be available through a servicer. If those do not fit, substantial equity may create another avenue worth reviewing.

$100,000 or more in equity can change the conversation

For the type of assistance discussed here, approximately $100,000 or more in available equity is generally the strongest fit. The property value, liens, arrears and foreclosure status all still matter.

Do not assume selling is your only way out

Before selling a home with substantial equity, compare the amount needed to cure the mortgage with the equity you would be giving up. Also ask where you will live after the sale and what it will cost to move and qualify for a rental.

Protect the equity you have spent years building

If you are behind on your mortgage in Arizona and have substantial equity, submit your property information for review while there is still time. Missed payments or credit challenges do not automatically prevent review.

Request a private property review

If you want to keep your Arizona home and have substantial equity, send us the approximate property value, mortgage balances, amount you are behind and any foreclosure sale date. Situations with approximately $100,000 or more in available equity are generally the best fit for the type of assistance we provide.

Request a private property review

If you want to keep your Arizona home and have substantial equity, send us the approximate property value, mortgage balances, amount you are behind and any foreclosure sale date. Situations with approximately $100,000 or more in available equity are generally the best fit for the type of assistance we provide.

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Related Arizona homeowner guides

Arizona Foreclosure FAQ

How many months behind before foreclosure in Arizona?

For most covered mortgages, federal servicing rules generally prevent the first foreclosure notice or filing until the loan is more than 120 days delinquent, roughly four months; exceptions apply. Arizona then requires a separate trustee-sale notice period: under A.R.S. § 33-808, the auction date can be no sooner than the 91st day after the Notice of Trustee’s Sale is recorded. This is often described as a 90-day minimum notice window. These are separate stages, not a guaranteed auction date based on a fixed number of missed payments. Servicing requirements, postponements, and case-specific circumstances may extend the process.

When is the absolute cutoff to cure my default in Arizona?

For a qualifying default accelerated before the loan’s scheduled maturity, A.R.S. § 33-813 permits reinstatement before 5:00 p.m. Mountain Standard Time (MST) on the last day other than a Saturday or legal holiday before the trustee sale, commonly described as the last business day before the sale. Cure requires the amounts then due, permitted costs and fees, and correction of other defaults, excluding principal due only because of acceleration. Obtain a written reinstatement quote and acceptable payment instructions from the trustee early. Payment must be completed before the cutoff; requesting a quote does not extend it. Confirm the precise deadline and sale cancellation with the trustee.

Are private foreclosure bailout loans available in Arizona?

Private home-equity financing may be available to eligible Arizona homeowners facing foreclosure. Sometimes called foreclosure bailout loans, these are repayable loans secured by the home, not grants or guaranteed relief. Depending on the transaction, a new home-equity lien may fund mortgage arrears and reinstatement costs, or refinancing may pay off the foreclosing loan. Approval depends on available equity, title and lien priority, repayment ability, costs, and time to close. Funding and payment must be completed by the applicable deadline for reinstatement or payoff to stop the trustee sale. Missed payments on the new loan can put the home at risk. An inquiry or preliminary approval does not itself stop or postpone foreclosure.

Sources: 12 CFR 1024.41(f), A.R.S. § 33-808, and A.R.S. § 33-813. Read the Arizona Foreclosure Timeline & Reinstatement Guide for more detail.

General educational information, not legal advice. Residential Capital, LLC reviews each situation individually. Financing is subject to approval and does not guarantee foreclosure relief. Submitting an inquiry does not stop or extend foreclosure deadlines.