When considering a short sale or foreclosure you must be prepared and understand what you are considering doing. The Arizona Foreclosure Prevention Task Force advising knowing your mortgage. Here is what they have published on this topic-
GATHER YOUR LOAN DOCUMENTS
Gather your mortgage loan documents. It is important that you fully understand the terms of your mortgage. A certified housing counselor can help you with navigating through them. These documents may include:
The Promissory Note - This is the legal evidence of indebtedness and
formal promise to repay the debt. It sets out your loan amount, your payment
date, the payment amount or how your payment amount will be determined
and the maturity date. It also includes the penalties and steps the lender and
servicer can take if you fail to make your payments on time.
Deed of Trust - The deed of trust helps to verify and protect the legal interest in
a property. The property is deeded by the title holder (trustor) to a trustee (often a
title or escrow company) which holds the title in trust for the beneficiary (the lender
of the money)
Adjustable Rate Mortgage Rider (ARM Rider) - Adjustable-rate mortgages (ARMs)
are loans with interest rate and payment changes. ARMs may start with lower monthly
payments than fixed-rate mortgages.
There are two important considerations:
adjustment period – how often does the interest rate change and when does the payment change
borrower notification – when are you notified of the change
The interest rate on an ARM consists of two parts: the index and the margin. The index determines how the interest rate will change and the margin is an amount that is added to the index to determine the new interest rate. There are different types of ARMs - hybrid ARMs, interest-only ARMs and payment-option ARMs
Prepayment Penalty Rider - A prepayment penalty allows the lender or servicer to charge the borrower additional interest, (typically six months), when a mortgage is repaid during the penalty period, which is usually somewhere in the first three to five years of the mortgage. If a mortgage contains a prepayment penalty, this should be clearly stated in the mortgage disclosures, mortgage note and/or prepayment penalty rider to the note.
TIL (Truth in Lending) Disclosure Statement - This document must be provided at application and at closing on certain loans. It shows the estimated total costs of borrowing, expected payment amounts over life of loan and other significant features of your loan such as a prepayment penalty.
HUD 1 Settlement/Closing Statement – This document contains all the costs to you that are associated with the purchase of your home and the loan. It is provided to you at the loan closing.
Last Two Mortgage Statements
The Arizona Foreclosure Prevention Task Force has put out information for homeowners facing foreclosure.
They provide free services and a Arizona Foreclosure Prevention hotline at 1-877-448-1211. There is also an informative website www.azForeclosurePrevention.org
Veracity Real Estate Group in Ahwatukee works hard to help homeowners facing foreclosure. Their agents are trained in the entire short sale process as well as AZ real estate law and how to best assist clients. Their agents are licensed Real Estate agents and you can rest assured will not only give you correct information but also listen and understand during the entire process. Call Dawn today at 480-540-8100 to schedule an appointment with Veracity Real Estate Group's short sale team.
www.VeracityRealEstateGroup.com
480-540-8100
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