How to Stop Foreclosure in Arizona When You Don’t Have Money for the Arrears

Facing foreclosure in Arizona without enough cash to cure the arrears? Substantial home equity may create another option worth reviewing quickly.

Arizona homeowners reviewing mortgage and home equity options

Being short on cash is not the same as being out of equity

A homeowner with a $650,000 property, $425,000 in liens and $24,000 needed to catch up has roughly $225,000 in equity. The immediate problem is access to cash, not necessarily lack of assets.

Find out exactly where you are in the foreclosure process

Determine whether you have delinquency notices, a recorded Notice of Default, a Notice of Trustee’s Sale or an actual sale date. Those are different stages, and timing matters.

Determine the amount needed to stop the problem

Get the current cure or reinstatement amount from the servicer, then gather the property value, first and second mortgage balances, other liens and any scheduled sale date.

Why traditional financing may be difficult

Traditional lenders generally evaluate credit, income, debt ratios and recent payment history. Missed mortgage payments can make conventional financing difficult precisely when a homeowner needs access to equity.

Private equity-based financing may be another option

Some private financing places considerably more emphasis on property value, existing liens, available equity, the amount needed and the overall property situation. It is secured by the property and should be evaluated carefully.

Have $100,000 or more in equity?

Situations involving approximately $100,000 or more in available equity are generally the strongest candidates for the type of assistance discussed here. That amount does not guarantee approval; all property details still matter.

Do not panic and sell without looking at the numbers

If you have $225,000 in equity and need $25,000 to cure the mortgage, compare the size of the immediate problem with the value of the asset before deciding to sell.

Do not wait until the last few days

A situation that may be workable several weeks before a trustee sale can become much harder with only a few days remaining. If you want to keep the home, act while there is still time to evaluate the numbers.

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.