Foreclosure Prevention Program in Arizona

Are you having trouble making your mortgage payments? You might qualify for assistance from Arizona’s “Save Our Home AZ” program and be able to avoid a foreclosure.

"Save Our Home AZ" is a federally-funded program that offers foreclosure avoidance assistance to eligible homeowners in Arizona. If you qualify to get help from the program, you’ll receive money to reduce the principal balance of your mortgage loan, help make your mortgage payments, or eliminate a second lien on your home.

Keep reading to get an overview of the programs, learn how much assistance is available, and find out if you’re eligible.

What’s the Hardest Hit Fund?

In 2010, the U.S. Department of the Treasury created the Hardest Hit Fund to provide targeted aid to homeowners in those states most affected by the housing market crash. As part of this program, $7.6 billion in aid was allocated to the 18 states, including Arizona, that experienced the most extreme home price declines and high unemployment rates as a result of the economic crisis.

In 2016, an additional $2 billion was allocated to states with Hardest Hit programs so they could continue their foreclosure prevention efforts. (To learn more about the Hardest Hit Fund in general, including which states have Hardest Hit programs, see Save Your Home From Foreclosure: Hardest Hit Fund Programs.)

Using funds from the Hardest Hit Fund, Arizona set up the Save Our Home AZ program. The program is scheduled to last through 2020, though other states have shuttered their programs early when their allocated funding ran out. So, it's best to apply for help as soon as possible if you’re facing a foreclosure in Arizona. (Learn more about the Arizona foreclosure process.)

Save Our Home AZ: Three Programs to Help Homeowners

The goal of the Save Our Home AZ program is to make a homeowner’s mortgage payment (including property taxes and homeowners’ Association fees), more affordable by reducing the payment to no more than 31% of the homeowner’s gross income.

To accomplish this, the Save Our Home AZ program offers three types of assistance to qualified Arizona homeowners:

Principal Reduction Assistance

This program provides up to $100,000 to reduce the principal amount of the mortgage loan and enable a modification, recast, or refinance.

Monthly Mortgage Subsidy Assistance

This program provides up to $2,000 each month, up to $100,000 in total, to unemployed or underemployed homeowners to pay their monthly mortgage payments. The program also provides money to reinstate a defaulted loan, if needed.

To qualify for assistance, homeowners must show a 10% or greater reduction of income and that their mortgage payments are greater than 31% of their gross, pre-tax monthly income.

Second Lien Elimination Assistance

This program provides up to $60,000 to pay off a second mortgage.

Qualifying for Assistance

Here are some of the eligibility requirements for homeowners and their properties:

  • The outstanding mortgages must be less than $500,000.
  • The trustee sale date can’t be less than 30 days away.
  • The household’s gross income (the total income before taxes, health care costs, social security, etc.) can’t be more than 150% of the area median income for the County in which the property is located.
  • The property, which may be a one- to four-unit dwelling, condominium, or townhome, must be an owner-occupied, primary residence. Second homes don’t qualify.

To find out all of the eligibility criteria and learn more about the Save Our Home AZ programs, check out this Program Fact Sheet.

Beware of Scams

The Save Our Home AZ program is free. You shouldn’t pay anyone for any services associated with applying for assistance from the program. Homeowners facing a foreclosure should also beware of other scams. (To learn about foreclosure rescue scams, see Foreclosure Rescue Scams to Avoid.)

Getting Help

To get more information about the Save Our Home AZ program, go to the Arizona Department of Housing’s website. You can fill out your application for assistance online. A counselor will then contact you within seven days. You may also complete an application by calling the Arizona Foreclosure Help Line at 877-448-1211.

If you need more information about Arizona foreclosure procedures or want to learn about possible defenses to a foreclosure in your situation, consider talking to a foreclosure attorney.

If you want to learn more about alternatives to foreclosure, like loan modifications, short sales, and deeds in lieu of foreclosure, consider talking to a HUD-approved housing counselor.

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