Legal Question in Real Estate Law in Arizona

The answer depends upon the lender's policy dealing with loans that are in default. In general, the lender does not look at a loan until it is more than 3 months behind, and then, you will hear from their collection department, trying to get you to make loan payments. Depending upon the lender, they may start foreclosure proceedings anytime thereafter, but usually it is a number of months before they do. Bankruptcy will stall the foreclosure proceedings for a couple of months, not for too long.

Bankruptcy will stall the foreclosure, but not for too long. If you file a Chapter 13, you can make monthly payments to come current, but you still have to make your regular mortgage payment on top of that. If you file Chapter 7, you either have to come current all at once or let the house go. Either way, the only remedy the bank will have is to take your house. The bankruptcy will protect you from any deficiency lawsuit. In fact, the anti-deficiency statute may prevent the lender from coming after you for any deficiency amount (even without filing bankruptcy) if the mortgage was used to purchase the house. See the following blog article discussing the anti-deficiency statute.

http://scotthyderlaw.com/the-arizona-anti-deficiency-statute-can-a-mortgage-lender-sue-you-for-a-deficiency-amount-after-a-foreclosure/

And consult with a lawyer!

http://scotthyderlaw.com/