According to Wikipedia, “foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court-ordered termination of a mortgagor’s equitable right of redemption.” To put it simply, foreclosure is a legal process in which a lender takes over ownership of a property when the borrower [...]]]> Phoenix Foreclosure Facts

According to Wikipedia, “foreclosure is the legal and professional proceeding in which a mortgagee, or other lienholder, usually a lender, obtains a court-ordered termination of a mortgagor’s equitable right of redemption.” To put it simply, foreclosure is a legal process in which a lender takes over ownership of a property when the borrower is in default of payment. Foreclosures can end in several ways, including pre-foreclosures, auctions and Real Estate Owned (REO), all of which are explained in further detail in this section. For prospective buyers, foreclosures can result in significant savings, since the lenders that take back the properties typically aren’t in the business of being landlords and will do whatever they can to sell them.

The Cutty Group can show you every foreclosure throughout the Phoenix metro area and lists all foreclosures in their free mls search

What are the two types of foreclosure?

1. Non-judicial, which occurs in deed of trust states. In this type of foreclosure, a third party that is empowered to foreclose or take back the property when the mortgage is in default holds title. Since the lender does not need to file a lawsuit against the mortgage holder to foreclose or take back the property, these foreclosures can take as few as 60 to 120 days.

2. Judicial, which occurs in mortgage states. Since the mortgage holder holds title and has to go to court to rectify the matter when the mortgage goes into default, this type of foreclosure can take much longer than non-judicial.

Four steps to foreclosures

Understanding the four steps to foreclosure can help prospective buyers to purchase properties at the best possible price.

1. Pre-foreclosure. This is the period during which a property owner starts missing payments but before formal legal action has been taken. During this time, a property owner may be more likely to consider any offer if it means saving their credit and avoiding full foreclosure.

2. Notice of Default (NOD). This is the first legal step taken in a formal process of foreclosure.

3. The foreclosure sale. Depending on whether it is a judicial or non-judicial process (each state varies), the foreclosure sale can take as long as a year. Judicial foreclosure sales are often held on courtroom steps as soon as a judgment is reached.

4. Redemption period. This is the time period some states allow for a property owner to get title back, provided they pay the full balance of the loan and various fees. Prospective buyers need to know if they are purchasing a foreclosed property that has a redemption period, since they won’t want to make major improvements to the property until they know for sure it is theirs.

A pro — and some cons — to consider

Since no transaction is truly without risk, here are some downsides to foreclosures — and one very good reason why purchasing a foreclosure may be right for you:

Pro

- A foreclosed property can often be purchased at a better price. In fact, the savings can be so significant it can outweigh all of the following cons:

Cons

- Foreclosures can be emotionally draining since they are the result of another person or family losing their American dream.

- Very often, foreclosed properties have been left empty, neglected and vandalized, resulting in immediate expenses for the new owner.

- The legalities of purchasing a foreclosed property can be much more complex and challenging than a traditional real estate sale.

Where to turn for help?

When purchasing a foreclosed property, you will likely want one or all of the following professionals on your team:

1. Realtor®. A Realtor® , like the Realtors of The Cutty Group are professionally trained to deal with all types of transactions, including foreclosures. Some real estate firms even have departments devoted entirely to foreclosures.

2. Home inspector. Since foreclosed properties have often been neglected and vandalized, this is especially important here. Even auctions leave a window for interested parties to examine properties before they’re put on the block. If you’re unable to inspect a property prior to purchase, follow your gut, but you might want to move on to the next property on your list.

3. Mortgage broker or lender. Even if you find the foreclosed property of your dreams and can agree on a purchase price, securing a loan has never been more difficult. Before you even begin your search, you should consult with a mortgage broker or lender to determine if you’re qualified to purchase and for how much.

Free Phoenix MLS Search
Features Full  and FREE access to ALL Phoenix  MLS Metro Area Listings of all homes available in: Phoenix, Scottsdale, Paradise Valley, Cave Creek, Carefree, Sun City, Peoria, Glendale, Surprise, Buckeye, Avondale, Tempe, Chandler, and Mesa, Arizona. Find REO’s, Short Sales,Bank Owned, Foreclosures! The Cutty Group!

There are some positive signs coming from metropolitan Phoenix’s housing market. Foreclosures dropped slightly in September, while home prices inched up again.

• Last month, lenders foreclosed on 3,759 Valley homes, an almost 5 percent drop from August, according to the Information Market. It’s the second month in a [...]]]> Phoenix AZ Foreclosures fell slightly in September 2009

There are some positive signs coming from metropolitan Phoenix’s housing market. Foreclosures dropped slightly in September, while home prices inched up again.

• Last month, lenders foreclosed on 3,759 Valley homes, an almost 5 percent drop from August, according to the Information Market. It’s the second month in a row foreclosures, or trustee sales, have fallen. Pre-foreclosures also dropped in September, a good sign there will be another decline in foreclosures this month. There were 7,857 pre-foreclosures, or notice of trustee sales, filed by lenders last month. That’s an 11 percent drop.

There’s been a big push by the government and non-profits for lenders to do more loan modifications, which could be behind the decline in foreclosures. Whatever the reason, at least for now, it means more people keeping their homes.

• The median price of metro Phoenix home sales climbed to $130,000, according to Mike Orr’s Cromford Report. The median a month ago was $127,000. Home prices, particularly in many of the Valley’s edge communities, have been slowly climbing since April, reports Orr, who analyzes Arizona Regional Multiple Listing Service data.

• New-home prices are up as well. Real-estate analyst RL Brown’s “Phoenix Housing Market Letter” reports the median price of a new Valley home is at $197,948, after hitting a recent low of $183,750 in July.

However, home building fell after showing some gains in recent months. There were 696 single-family housing permits issued Valley-wide. Sales overall were down slightly from August but are still well ahead of last’s year pace.

Gordon’s fellowship

Phoenix Mayor Phil Gordon has been awarded a fellowship with the Urban Land Institute’s Daniel Rose Center for Public Leadership in Land Use. He joins the mayors of Nashville, Minneapolis and Philadelphia in the program, designed to help city leaders build and sustain their cities.

“Mayor Gordon and his administration have demonstrated a commitment to sustainability through investments in planning, building retrofits and solar energy,” ULI Chief Executive Patrick Phillips said.

Gordon’s team is Wes Gullet, partner with lobbying firm First Strategic; Mark Winkleman, former director of the State Land Department; and Debra Stark, planning director for Phoenix.

Reach the reporter at catherine.reagor@arizonarepublic.com.

Free Phoenix MLS Search
Features Full  and FREE access to ALL Phoenix  MLS Metro Area Listings of all homes available in: Phoenix, Scottsdale, Paradise Valley, Cave Creek, Carefree, Sun City, Peoria, Glendale, Surprise, Buckeye, Avondale, Tempe, Chandler, and Mesa, Arizona. Find REO’s, Short Sales,Bank Owned, Foreclosures! The Cutty Group!