Expert: liznarr - 10/20/2004

Question
Ok I think I understand but just to clarify let me give you a question and answers and tell me which you think best answers the question.....

If a payment is due on the 1st of the month and now it is the 7th what may be done?
a) Give notice to correct person to start foreclosure
b) Must wait 30 day
c) Must wait 90 days
d) Make public in newspaper that there may be a foreclosure


I heard that in Arizona you have to make it public in local newspaper for four weeks and usually the time frame for the whole foreclosure takes about 90 days but I want to know the very first step.


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Followup To
Question -
I have a couple of questions that maybe you can help me with please?

I was wondering if you know what happens to listing agreements if say ABC company buys over XYZ's company. So are XYX's listings still valid or do the clients now need to re-do the listing or does it just carry over to the new company as usual? What is the rule for this?

Also I was wondering if you know if the real estate sellers agent needs to tell the prospective buyer if seller is going through a bankruptcy?

One last question. Say the owner has now defaulted on mortgage payment, how does the forclosure process begin? Do they have to wait 30 days, 90 days, make public in newpaper or can they just give notice to the correct person to start the foreclosure?

Your help is much appreciated


Answer -
Hi Tina,

Thanks for writing All Experts.

If ABC Realty were to buy XYZ Realty, and assuming that the Company name would be ABC Realty, then I would think that XYZ's “former” listing agreements would have to be resigned.  A listing agreement is a legally binding contract, and in the absence of an assignment clause, the listings would need to be resigned.

On the question of a Seller's agent telling prospective buyers if a Seller is going through bankruptcy, unless a Seller has given his/her agent permission in writing to disclose this fact, the bankruptcy should NOT be disclosed.

The foreclosure process can begin one of two ways:  First, and the way most foreclosures occur, is that after an owner defaults on the mortgage, the mortgage company files legal papers to foreclose.  Different states have varying time periods before foreclosure can actually begin, and different mortgage companies might begin the foreclosure process at different times after default  -- in excess of the minimum number of days required by a state's law.  Foreclosure is time-consuming and expensive for mortgage companies, and it's always in their best interest to get a delinquent owner making payments on time again.

A second method of foreclosure is a voluntary one, called a non-judicial voluntary foreclosure.  If both the lender and borrower are in agreement, a voluntary foreclosure is the simplest solution … but also one in which a borrower gives up his right to redemption (a time period in which a buyer in a JUDICIAL foreclosure has to redeem property from foreclosure).  In a voluntary foreclosure, the borrower would deed the property to the lender.  Upon receipt of the deed, the lender would then waive the right to sue for a deficiency judgment.

I hope the above is helpful to you.  Write again if you have additional questions.

Regards,

Elizabeth Narr


Answer
Hi Tina,

I am not familiar at all with Arizona law and so, therefore, cannot comment specifically as to your question.  The question and answers you presented are a bit vague from my position in that the question does not state whether or not a payment has been RECEIVED by the 7th of the month.  In addition, not knowing the context or previous discussion of facts as to “how” this question is being posed, I do not have enough information to give you an accurate answer for this one.

If you are studying for a pre-licensing test, I would suggest that you call one of the following in Arizona in order to obtain the correct answer:

1.   A real estate instructor,
2.   An attorney who specializes in foreclosure, or
3.   A local lender who should be familiar with Arizona foreclosure law.

Most mortgages that I am familiar with will give a 15-day grace period before a LATE PAYMENT is due, notwithstanding any foreclosure clause in the mortgage.  Most mortgage companies I am familiar with would not be willing to act so quickly to foreclose after only seven days have passed with no payment being received.  My preceding comment, of course, assumes there has been no previous history of continuous late payments.

I did a search on Google for you on Arizona foreclosure law.  I found the following sites which you might want to visit and read up on:  

http://www.foreclosureassistance.com/states/arizona.html

http://www.stopforeclosure.com/Arizona_Foreclosure_Law.htm

I have appointments this morning and am unable to take the time now to interpret the information on these sites for you.  Also, I am not representing that the information on these sites is 100% accurate, since I have no way to independently verify it … but you can do that through a local attorney.

Again, I hope the above is helpful to you and points you in the right direction.  Good luck to you, and don't forget to rate my answers.  Write again if you have additional questions.

Regards,

Elizabeth Narr