Phoenix Foreclosure Properties

On any given day I can expect numerous calls and or emails from someone seeking to buy foreclosure properties. It almost seems as though half of Phoenix is in danger of facing foreclosure and the other half wants to purchase these properties. I thought I would take a moment to do a brief foreclosure guide.

First, and most importantly, if you are falling behind on your mortgage payments or have already received a Notice of Default (NOD), please read my posts on ways to help yourself during this difficult time. Know that you are not alone and most lenders are willing to work with you to get you through this.

OK, for those of you looking to purchase foreclosure properties there are a few things you should know.

• If a property is facing foreclosure in Arizona there has been a notice of default (NOD) filed. Generally the property owner has 90 days to bring the loan current before the foreclosure sale proceeds.
• There are many websites which list properties that have had a NOD filed. Here are two Foreclosure.com and RealtyTrac. Both offer similar property listings. Try them out and see what works best for you.
• If the property is facing foreclosure but NOT listed for sale, your average real estate agent will not help you. Approaching people facing foreclosure is not for the faint of heart. If the property is up for auction, not many agents will accompany you as, quite honestly, there is little financial incentive for them to do so.
• Many, many of these properties are listed for sale and available on the MLS. Some of these will be listed as pre-foreclosure or short-sale. Some will just have instructions that lender approval is required. A good, experienced agent will be able to find these listings for you and will be happy to provide you with a list of these properties. You can also contact me and I will send you a daily list of properties fitting this profile.
• Properties which were offered at auction but failed to sell are known as lender-owned or REO (real estate owned) properties. Many of these are also available on MLS. Contact an agent, or me, for information.

Are foreclosures a bargain? Not necessarily. Realize the homeowner was in some sort of financial crises which caused the foreclosure process in the first place. Knowing this, keep in mind that regular home maintenance probably fell short and the home could be in need of major repairs.

Know that in a market such as the Phoenix real estate market, there are so many home owners who owe more then their home is worth that you are just as likely to find a property on MLS as you are searching foreclosure lists. Again, this is where a good agent comes in handy. One of the advantages of buying an MLS property is you have a 10-day inspection period. Should you approach a homeowner direct, you are unlikely to have this sort of protection.

There are professional foreclosure property buyers. These investors have cash in hand to bail-out a property owner on short notice. If you need to secure a mortgage you are at a disadvantage. Also, when a property is offered for short-sale be prepared to wait a few weeks while the property owners lender decide if they will accept your offer.

In conclusion, foreclosure property purchases can work to your favor but you must be prepared for the type of purchase and do your homework.

Comments

[buying off the plan]

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[home loans]

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