How to Catch Up on Missed Mortgage Payments in Arizona

Learn how Arizona homeowners with substantial equity may be able to address accumulated missed mortgage payments without immediately selling the home.

Arizona homeowners reviewing mortgage and home equity options

First, find out exactly how much you need

Contact your servicer and determine the current amount required to bring the loan current. Then gather your approximate property value, total liens, cure amount and available equity.

The regular payment may not be the real problem

If a $2,700 payment is affordable again but five missed payments created $13,500 or more in arrears, the homeowner may not need a permanently lower payment. The immediate problem is overcoming the accumulated shortage.

Look at the arrears compared with your equity

A $650,000 home with $410,000 in total debt has about $240,000 in equity. If $25,000 is needed to catch up, the homeowner has a serious cash-flow problem but not necessarily an equity problem.

Why not just get a HELOC?

For homeowners with strong credit and clean recent payment history, a HELOC may be worth considering. But missed mortgage payments can make traditional approval harder at exactly the time access to equity is needed.

Equity-based financing may be another possibility

Some private financing focuses more heavily on the property, existing liens and available equity. Depending on the situation, it may provide funds to bring an existing mortgage current. Because financing is secured by the property, terms and costs should be considered carefully.

$100,000 or more in equity?

Homeowners with approximately $100,000 or more in available equity are generally the strongest candidates for the type of review discussed here.

Do not let $10,000 behind become $20,000

Arrears do not usually shrink on their own. Additional payments, fees and foreclosure-related expenses may increase the amount needed. Acting earlier can preserve more choices.

A temporary problem does not always require a permanent decision

If income has recovered and the regular mortgage is affordable again, selling the home can be a permanent response to a temporary setback. Before doing that, find out whether a portion of the equity can solve the arrears instead.

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.