Check Out the Latest Foreclosures
Foreclosures are getting harder and harder to find, but we’re here to help you in your search. If you are in the market for a short sale, foreclosed or REO property, please contact us to get the latest list. Though we display the most recent foreclosures listed in our MLS, not all properties make it online. They sell too quickly!
To be in the know when it comes to foreclosures, you need a licensed real estate agent working for you on the inside. We’d love to help you keep track of the latest opportunities in Maricopa County. If you want to view properties today, please don’t wait for an email reply, call us at 480-432-7049 for the fastest service.
Foreclosure:
Foreclosure properties are getting difficult to find nowadays. They sell out so fast that they don't even make it to multiple listing services online. To be updated with the recent foreclosures, look for a licensed real estate who works for you on the inside.
The Arizona Deal Hunters can help you search for foreclosure homes in Phoenix, AZ. A team of industry experts will guide you through the home buying and selling process. Read on as we give more details about foreclosures.
What Is Foreclosure?
Foreclosure is a legal process by which a homeowner loses all rights to the property. The entire process starts after you missed a mortgage payment for a month. The mortgage lender will then give the owner a default letter detailing their debt.
Debtors have two options:
pay the outstanding debt or sell the property through a short sale. By taking the short sale option, owners will be able to sell the property and be done with the problem. If not, then the house goes to a foreclosure auction.
At the auction, the house is sold to the highest bidder. If the house doesn't sell on the auction, the mortgage lender (often banks), takes ownership of it. Most often, these bank-owned properties or real estate owned (REO) are listed by a local real estate agent for sale on the open market or sold at a liquidation auction.
Types Of Foreclosure
Once the foreclosure process starts, its hard to foretell what will happen. The precise process of foreclosure may vary by state. There are three types of foreclosure.
Judicial Sale
A judicial sale may be used in all states and handled by the court. This happens when the mortgage lender files a civil lawsuit against the borrower (homeowner). A proper notice of the lawsuit will be provided to the borrowers, along with the opportunity to pay back the debt. If you missed paying the debt at a specific time, the court will issue an order allowing the property to be sold at a public auction. This auction is usually administered by the sheriff's department or the county court. Usually, the entire foreclosure process could last up to 700 days.
Non-Judicial Foreclosure
The non-judicial foreclosure process allows the mortgage lender to sell the property at a public auction. This process doesn't need a court's approval as long as the process follows the state laws and the terms of the power of clause in the deed of trust. The power of sale clause provides the right of a third-party trustee to sell the property when the borrower fails to pay the mortgage.
In most states, the non-judicial process begins when the lender files a Notice of Default with the County Recorder's office. This puts the borrower and any interested parties on notice that the loan may be foreclosed on. If you still miss paying the amount owed 30 days to 120 days later, a second notice ( the Notice of Trustee Sale) will be filed to set the auction schedule.
Strict Foreclosure
A few limited states use the strict foreclosure process. Before the lenders can put the property up for sale, they need the approval from the court to recover property. A key requirement to get approval is that the property's actual worth should be less than the total debt. A deadline to pay the debt is set once the court approves a strict foreclosure. If the borrower fails to pay, the court gives the ownership of the property to the lender.
How Do You Find A Foreclosure Listings In Phoenix, AZ?
If you want to save money by purchasing a foreclosed home, a good start is to find the listings. Not every foreclosure is a good deal because some can turn into unexpected nightmares. If you're an inexperienced buyer, you may need to hire a real estate agent to guide and assist you in buying a foreclosed home. There are several ways to find foreclosure listings in Phoenix, AZ.
Real Estate Agents
The realtors in Phoenix Arizona who specialize in listing foreclosures can help you find several foreclosed homes in your area. They have direct access to the Multiple Listing Service (MLS) that consumers don't get. Ask a buyer's agent to search for REOs and look at the listings of the listing agents.
Real Estate Signs
Driving around town can help you find foreclosures. Look for houses that have these signs: foreclosure, bank-owned, and bank repo. Contact the agent that's posted on the sigh and ask about other foreclosure listings that are available on the market.
Major Bank Websites
Some banks keep a list of foreclosed properties on their website. To find these lists, simply search the name of the bank and the word "REO".
Real Estate Websites
Web-based foreclosure companies, like the Arizona Deal Hunters, can provide you a list of foreclosure properties near Phoenix, AZ. Filter your search by entering the county, city, and price you want. The key to finding the best foreclosure deals is to have a licensed real estate agent working for you on the inside. The Arizona Deal Hunters can help you keep updated of the recent opportunities in Phoenix, AZ. If you want to see properties today, call 480-432-7049 for the quickest service.
The Smart Way To Buy Foreclosure Homes in Phoenix, AZ
Foreclosure properties are definitely appealing if you're looking for a new affordable home in the market. It's easy to find a listing that fits your budget, but don't be fooled by what appears like a good deal. Buying a foreclosed home is something you should carefully evaluate before writing an offer.
Buying a Pre-Foreclosure Property
Purchasing a pre-foreclosure home is an opportunity to pay an affordable price.Pre-foreclosure homes are listed as pre-foreclosure properties or short sales on real estate websites. A short sale is a sale of a property to avert foreclosure.
To find pre-foreclosure properties not listed as short sales, check the public-record notices. You can also ask homeowners if they want to sell their distressed homes. Do it with respect and don't harass them about a distressed property you're interested in purchasing. The smart way to purchase a pre-foreclosure property is to help the seller cover all the back payments and then arrange to purchase the property from the seller. This process will go without any problems if you can offer to pay in cash.
Buying at a Foreclosure Auction
Auctions can be a risky method to purchase a property so it's important that you understand the process and research about the properties being auctioned. It would be a good idea to seek advice from a real estate agent. To benefit a trustee sale, get pre-approved for a loan so you have proof that you have the money to buy a foreclosed property at an auction.
When you come to the auction, bring cash or check. Often, trustees need a cash deposit before the bidding even starts. If you want to purchase a home at a trustee sale, take time to evaluate the homes listed for auction. Determine the estimated market value, the total debt, and liens. You may want to check the condition of the auctioned property, but don't trespass.
Buying A Bank-Owned Property
Before buying a bank-owned property, find out everything about the property. Determine its current market value and the total money owed to the bank. You have more chances of negotiating a better deal if you have as much cash as possible. If you want to buy an REO property quickly, make an offer with the listing agent directly.
You don't have to make the highest bid because it will still be denied if you don't have a good financial profile. Make a fair offer by examining comparable sales and be patient.
Know About Foreclosure Laws In Arizona
In Arizona, a lender can use either a judicial or non-judicial process to foreclose mortgages in default.
The judicial process can be used when no power of sale exists in the mortgage. Basically, after the court rules a foreclosure, the ownership of the property will be given to the highest bidder. When a power of sale clause is present in a deed of trust or mortgage, then the non-judicial process is used. The lender or their representative (often called the trustee) may execute the sale of the property.
If a power of sale clause exists on the deed of trust or mortgage, the terms of sale, time, and place should be followed. If not, the non-judicial power of sale foreclosure is accomplished as follows: The trustee must file a notice of sale in the office of the county's recorder where the property is situated and send a copy to the interested parties within five days.
The notice should be posted in a newspaper once a week for about a month with the last notice being posted not less than ten days before the date of the sale. Provided that no breach of the peace is violated, the trustee can put the notice at a prominent place, courthouse, or at any specified place in the county.
The trustee or his agent must carry out the sale to the highest bidder for cash. The lender can make a credit bid, where some part of the debt can be canceled out. The payment should be made by 5 pm of the day after the bid.
The sale may be postponed to another time and place by the trustee, provided that a notice is given.
5 Mistakes To Avoid When Buying A Foreclosure
Many buyers are considering non-conventional ways to buy a home, especially in hot housing markets like Phoenix. Buying a foreclosed property isn't a choice one should make quickly. If you're considering to buy a foreclosed property, here are common mistakes you should avoid.
1. Not Doing A Meticulous Home Inspection
Buying a foreclosed property without a thorough inspection is a bad idea and can have serious outcomes. Generally, bidders don't allow you to check the house because they want to get rid of it at a hefty price. Although it's understandable that you have to buy the foreclosed home as it is, you have to know its current condition before you hand over the money. You don't have to do the inspection yourself. You can hire professional home inspectors to give a realistic view of the foreclosed home that you want to buy.
2. Spending Beyond Your Budget
Buying more than what you can afford will cost you your sanity, to say the least. Set a maximum price that falls within your budget. Allot at least 10% of its tag for possible repairs and renovations.
3. Doing It Alone
A foreclosed real estate is a risky investment so you need the professional help of an agent. A real estate agent can help you deal with complex transactions and help you find the best deals in town. So unless you're a real estate genius, find an agent with impeccable foreclosure experience in your market.
4. Not Knowing The Law
Keep in mind that foreclosure laws vary from state to state. A wrong font size or an improper language in the contract may cause you criminal and civil damages. Real estate agents aren't lawyers so you can't rely on them to help you with legal advice. The strategy is to understand the foreclosure laws in your state and seek legal advice from a local real estate lawyer.
5. Don't Be Enticed To "Flip"
Buying a home at a low price, renovating it, and then trying to sell it for a higher price may seem attractive, but you should be careful. Unless you're an expert in house flipping, you may run into several amateur mistakes. Consult a credible real estate professional before planning a flip.