Pre-foreclosure Homes in Phoenix

A pre-foreclosure home is a property for sale in Phoenix where the home owner is trying to sell the property before the bank forecloses upon the house.  In general, a home owner in Phoenix is usually about three months delinquent on their mortgage(s) before the home owner's bank decides to pursue a foreclosure against the home owner.

In Phoenix, the bank must file a notice of trustee sale with the county recorder that give the home owner a statutory 90 days to bring his or her loan current (or sell the home) before the bank is allowed to sell the home at a foreclosure auction and reclaim their debt.

During this 90 day period, many home owners will desperately try to sell the home to beat the bank and as a result, are usually very motivated to sell the home at an aggressive price to avoid the foreclosure.

Since the downturn in the Phoenix real estate market, currently 78% of Phoenix home owners owe more on their home than what the property is worth.  For those sellers trying to sell their home before a foreclosure, the seller must seek their bank's approval to short sale the home.  A short sale is a situation where the seller's bank agrees to accept less than what is owed on the home in order for the seller to sell their home. 

For home buyers, the savings can potentially be a windfall.  Our clients have saved from 10% to 40% below market value of a short sale in Phoenix.  Our buyers have had their closing costs paid for; they have had portions of the home fixed and renovated; and in a couple of creative situations, our buyers have been able to live in the home during the short sale process.

The downside to a short sale, however, is the amount of time it takes the seller's lender to determine if they will approve the sale or not.  Short sales are taking anywhere from 30 days to 6 months, depending upon the number of loans against the home, the bank holding the loans, and a variety of other factors.

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To talk to Rob Madden about how to go about buying a pre-foreclosure or to talk about different strategies, the process, or any other question, give him a call directly at 480-888-1234.