Distressed properties – A large part of our current market.
The Arizona real estate market, like many others, continues to change at a rapid pace. While the trend is currently looked at by many as “distressing,” there are those who look at this market as an opportunity to purchase real estate in an environment of low interest rates and at price levels not seen for quite some time.
One of my long time “partners” in the real estate business is Fidelity National Title. For those of you that have worked with me for a long time, you might be familiar with them. Recently, I got some very interesting statistics from my friend, Jennifer Weller, an account rep for Fidelity. We discussed some of the current issues banks are dealing with when handling distressed properties.
1. 40% of the subprime loans written in ’06 & ’07 had no income verification.
2. Chase has a new program that if you lose your job-they will reduce your payment to $500 for months to help homeowners not lose their home.
3. It costs lenders on avg 75-125k per bank owned property.
4. fannie mae loan-primary residence…foreclosure=ineligible for 5 yrs for a FMae mortgage, short sale=2 yrs
5. investor ineligible for a Fannie Mae loan for 7 yrs in Foreclosure, short sale=2 yrs
6. foreclosure lowers credit 250-300 pts for avg of 3 yrs…and stays on credit for 10+ yrs
These 6 items are from Jen’s “Twitter” feed while attending a seminar. I hope to go over the details with her in the near future and will gladly update you with any questions you might have. We will be reviewing the notes and updating / adding to the information in the near future.
As in every market, it is best to understand and make good educated decisions before buying or selling. There is always a seller that wants to sell and a buyer that wants to buy.
Let’s discuss your situation before you decide to make a move. As always, I’ll give you my honest opinion of your current situation. If it makes sense for you to make a move, I am happy to assist. If it doesn’t, I will be glad to tell you so.
If you just want to “get a feel” for prices of homes in an area, (including foreclosure lists / distressed properties) you may visit my FREE map-based home search page to begin the process.
As always, remember to “Just Call Nick” with any questions or comments! I’m here to help. 602-803-6425.