Know Your Options, Avoid Foreclosure in Arizona: Refinance & Servicemembers Civil Relief Act (Part 4 of 5)
Foreclosure is both devastating and avoidable. If you’re experiencing impending foreclosure in the Phoenix area, you have options to avoid it if know them.
Part 3 of this avoiding foreclosure series focused on the following two options: Deed in lieu of foreclosure & bankruptcy.
Keep in mind your situation & determine if any of the following solutions could work for you.
REFINANCE
If you have sufficient equity in their property and your credit is still 
in good standing, you may be able to refinance your mortgage.
Benefit: In some cases, this will lower payments.
Drawback: In today’s market, a refinance will almost always raise mortgage payments, and is an expensive process.
If you’re thinking of refinancing your house, here are 5 reasons why this option may be right for you:Convert an Adjustable Rate Mortgage (ARM) into a Fixed Rate Mortgage (FRM): Your monthly payments will remain the same.
- Convert an Adjustable Rate Mortgage (ARM) into a Fixed Rate Mortgage (FRM): Your monthly payments will remain the same.
- Pay less: If you get a lower interest rate or the term of the loan is extended, your monthly payments will be reduced.
- Pay it off quicker: Reducing the term of the loan will shorten the length of your mortgage, although you will be paying more each month.
- Pay off debt: With enough equity, you could borrow more & pay off high interest debts.
- Consolidate two loans into one single mortgage with enough equity.
SERVICEMEMBERS CIVIL RELIEF ACT (military personnel only)
If a member of the military is experiencing financial distress due to deployment, and that person can show that their debt was entered into prior to deployment, they may qualify for relief under the Servicemembers Civil Relief Act.
SCRA may protect you against the following obligations:
Outstanding credit card debt
Mortgage payments
Pending trials
Taxes
Terminations of lease
- Benefit: If qualified, this will lower payments on all consumer debt in addition to mortgage payments.
- Drawback: Must be active military to qualify. The protection begins on the date of entering active duty and generally terminates within 30 to 90 days after the date of discharge from active duty.
If you missed any of the other parts of this Avoiding Foreclosure series:
Part 1: Reinstatement & Forbearance or Repayment Plan
Part 2: Mortgage Modification, Rent the Property
Part 3: Deed in Lieu of Foreclosure, Bankruptcy
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Are you experiencing financial distress & hardships, near the point of foreclosure?
Do you need help and guidance from a Certified Distressed Property Expert and experienced real estate professional?
Anna ”Banana” Kruchten is trained and experienced regarding pre-foreclosure education & short sales, so you know you’ll receive the best possible advice.
Give Anna a call at 602-380-4886 or e-mail her to schedule a one-on-one meeting to discuss your options and which fits best with your particular situation.
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