There’s a lot of attention being paid lately to foreclosures, and how they are pressuring the market. Here at Condodomain, we’ve partnered with Realtytrac to bring you the latest information on Phoenix foreclosures.
There’s also a lot of confusion about foreclosures – so lets talk about what they are. When a homeowner defaults on a mortgage payment, over a period of time (which varies from state to state) the lender may take action to possess the property, or foreclose on it. These properties are then auctioned at a public sale, usually in the county courthouse or sheriff’s office. Those are only a few of the foreclosure sales – most foreclosure sales actually happen pre foreclosure, when the home owner has received notice that the bank intends to foreclose.
Investors/home buyers may approach an individual who has fallen behind in their mortgage and try to make a deal — usually taking over the mortgage payments and any other liens on the property. Sometimes they rent the property back to the former home owner. Usually, the home owner has to leave so that the new owner can take possession.
Sometimes a homeowner can get the bank to agree to take less money than is owed if the house sells. This is known as a short sale, and requires all lienholders to agree to the amount of the sale. Many homes on the market today are shortsales, as homeowners attempt to avoid foreclosure.
If you don’t buy the home from the homeowner directly and it does not sell at the sheriff.s sale, you may be able to buy it directly from the bank.
You can get a great deal with a Phoenix foreclosure, but you have to be aware of a few things. One – the property may be in less than prime condition and you may not have a chance to really thoroughly inspect it before bidding. With repairs and paying all liens, back taxes, and obligations, you may wind up paying more than the house is worth – not such a great bargain. Two – you may have difficulty evicting the occupants and require the assistance of law enforcement. Three – you need to have your financing lined up and your down payment ready at an auction. Professional foreclosure investors come with bank checks already prepared.
Phoenix foreclosures are a great opportunity, but don’t go into the venture alone, especially if you are new to buying real estate. Our Phoenix foreclosure listings show properties in various stages of foreclosure. Contact us about these listings, and we will assist you every step of the way.
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