It has now been two and a half years since we started to see a marked increase in foreclosures in Maricopa County. Since April 2008, there have been 232,456 Notices of Trustee's Sale filed in Maricopa County. 115,214 of those homes have actually ended with a recorded trustee's deed indicating foreclosure. The other homeowners have either gotten current on their loan, successfully sold the house as a short sale or are attempting loan modification. Since January 1, 2010, the number of notices filed in Maricopa County stands at 87,747. However, while fewer properties are entering into the foreclosure process, the banks have picked up the pace at which they are foreclosing.
It has now been two and a half years since we started to see a marked increase in foreclosures in Maricopa County. Since April 2008, there have been 232,456 Notices of Trustee's Sale filed in Maricopa County. 115,214 of those homes have actually ended with a recorded trustee's deed indicating foreclosure. The other homeowners have either gotten current on their loan, successfully sold the house as a short sale or are attempting loan modification. Since January 1, 2010, the number of notices filed in Maricopa County stands at 87,747. However, while fewer properties are entering into the foreclosure process, the banks have picked up the pace at which they are foreclosing.
In October, due to legal pressure, several of the big lenders placed moratoriums on their foreclosures. Bank of America, GMAC, and Wells Fargo were several lenders who stopped foreclosures. Now, Wells Fargo has quickly ended their moratorium and is back to foreclosing. The court system did have testimony from several bank employees who stated that they had given their approval on directives to foreclose without actually reviewing the files. This was due to the overwhelming number of files the employees were assigned. Fearing more lawsuits, the lenders ordered the moratoriums.
Currently, the bank owned inventory of homes for sale is rising. Of the approximate 4,800 homes auctioned at the trustee sales, approximately only 1,000 are being purchased by investors. This means approx. 3,800 are returned to the banks for them to sell. Of these returned homes, approx. 2,600 are actually being purchased thru the MLS. This means the REO or lender owned properties inventory for sale is increasing by approx. 1,200 homes per month. Excess inventory means lower prices. All of this inventory needs to be absorbed, or purchased, for us to see prices rise again.
At this time, experts are predicting the next big wave of foreclosures to hit just after the first of the year. In the meantime, mortgage interest rates are remaining low and lenders are reporting that refinanced loans are up.
Need to sell or looking to purchase?? Give us a call. We can help you make sense out of the current market and choose the path that is best for you.
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