New Year to Bring New Wave of Phoenix-area Foreclosures

On December 16, 2009

In November, 61% of the Phoenix Valley’s residential real estate transactions were foreclosures and resales of previously foreclosed homes. Median Home prices are at $143k, up from $140k in October, while resales hit 5300, up from 3400 this same time last year.

According to ASU’s Associate Professor of Real Estate Jay Butler,

…the foreclosure rate will pick up after the first of the year because of the continued weak job market and frustration on the part of homeowners struggling to pay their mortgages… We’re in an economic recovery, but it’s an anemic recovery; and more layoffs may be coming.

The outlook for investors is promising for early year acquisitions through Phoenix Trustee Sale auctions, including those looking to upgrade properties with the intention of leasing out the residences to generate some extra cash flow, as well as for buyers looking to fix and flip. First quarter home values aren’t expected to make significant gains, but with the extra properties out in the market there should be some quality opportunity for those willing to get their hands dirty and feet wet.

To view Butler’s full report, including stats, charts and a breakdown of the different regions across the Valley, follow the link below…

Expert forecasts new wave of 2010 Foreclosures for Phoenix, AZ


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Strategy for Investing – Foreclosure Auctions

1. First and foremost, find a source that is providing foreclosed property listings with 'comprehensive' information, and develop a system for filing.
2. Filter through the properties locating the real estate with built in equity. What is owed? Are there any junior lien holders?
3. Investigate the neighborhood comparables, comprise a list map, then get in your car and visit the properties.
4. Set your maximum bid price. This sounds simple and straightforward, however the fast-paced action of the bidding process can cause the most reserved person to hastily over-compete for a not-so-great piece of property.

AZ Auction Process – Trustee Sales

1. 90 days has passed since the Notice of Trustee Sale is issued. Prior to sale, the Trustee establishes the opening or minimum bid to be accepted at auction by referring to the calculated Credit Bid Statement prepared by the respective Beneficiary.
2. On the 91st day, said property is put on the auction block. All bidding is open and verbal. $10,000 cashier check in hand is required by all parties bidding.
3. Highest bidder must present the funds in total to the Trustee by 5pm of the next business day in order to gain title.
4. Acceptance of funds results in the recording and conveyance of a Trustee's Deed; funds are disbursed to the Beneficiary.