Mortgage Arrears Help in Arizona: Options Homeowners Should Know About

Behind on your mortgage in Arizona? Learn how substantial home equity may create another way to address arrears and keep your home.

Arizona homeowners reviewing mortgage and home equity options

Mortgage arrears can become a cash problem very quickly

Falling behind can happen after a job change, illness, divorce, family emergency or another temporary setback. A missed payment does not automatically mean you have to sell or lose your home. For homeowners with substantial equity, the most important question may be whether the property itself can help solve the shortage.

Start with four important numbers

Write down your approximate home value, the total owed against the property, the amount required to bring the mortgage current, and your approximate equity. Also find out whether a Notice of Default or foreclosure sale date exists. Those numbers tell you far more than the fact that you are simply “behind.”

Your mortgage company may have options

A servicer may discuss a repayment plan, forbearance, modification or another loss-mitigation option. Those are worth asking about, but not every solution works for every homeowner. If the available servicer solution does not solve the problem, substantial equity may be another resource to examine.

Can home equity help you catch up?

Suppose a home is worth $600,000, total debt against it is $400,000, and the homeowner needs $20,000 to become current. That homeowner has about $200,000 in equity but may not have $20,000 in cash. Having equity and having cash are different things. Private equity-based financing may place more weight on the property and available equity than a traditional bank loan.

Do you have $100,000 or more in home equity?

For the type of assistance discussed here, situations with approximately $100,000 or more in available equity are generally the strongest candidates for review. For example, a $550,000 home with $375,000 in total liens has about $175,000 in equity. Credit challenges or missed mortgage payments do not automatically prevent a review.

Be careful about selling just because you are behind

Needing $20,000 to cure arrears and owning $200,000 in equity are two very different problems. Before selling the entire asset to solve the smaller problem, find out whether keeping the home may still be realistic.

Think carefully before accepting a quick investor offer

A fast cash sale can make sense in some situations, but speed can come at a price. Compare any offer with a realistic market value and ask what happens after closing. You will still need housing, moving money and possibly rental approval while recent mortgage lates may be affecting your credit. Do not solve a mortgage emergency by accidentally creating a housing emergency.

Your equity may give you another way forward

If you are behind on your mortgage in Arizona and have substantial equity, submit your property information for review. We will look at approximate property value, mortgage balances, the amount needed to become current and any upcoming 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.

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.