The Foreclosure Process
I t is estimated that 1 out of every 200 homes will be foreclosed upon and that 250,000 families enter into foreclosure every 3 months. In Arizona, the foreclosure rate is among the nations’ highest. If you or someone you know is facing foreclosure, it’s important you know what the process entails. When a homeowner (borrower) has missed a mortgage payment, the lender will send a notice indicating that they have not received that month’s payment. After two payments are missed, the lender will usually send a “demand letter” and the homeowner would need to remit the late payments within 30 days of receiving the letter. If after 90 days, the lender has not received missed payments, a notice of default will be issued, and the loan will be handed over to...
Should I buy foreclosed Arizona Real Estate?
A rizona has the 3rd highest rate of foreclosures and pre-foreclosures in the country and more home buyers are drawn to foreclosed Arizona real estate because of the bargain prices. Obviously, the opportunity to buy a home below market value is a huge benefit to buying a foreclosed home. However, there are also some risks that bargain hunters need to assess: 1. You might not have time to do research: If you decide to buy a foreclosed home at auction, you won’t have time to research it. Liens will be wiped clean and you will be responsible for any property taxes. There is also no home inspection, and homes sell sight unseen. You could also get into a bidding war and end up paying more that you intended. Bargains can be had at auctions, but the risk may not...
Question and Answer: Foreclosure Stripping
Q : Hi Anthony: Recently my neighbors’ house was foreclosed on, and we got into a debate when they said they were going to strip the house of the light fixtures, ceiling fans and appliances. I told them that this was illegal, but they disagreed. What can owners take from a foreclosed home? Mary L. in Chandler, AZ A: Mary, Your neighbors could face prosecution if they decide to strip their home. Not only is it considered a felony in Arizona, but it morally wrong. The following is a list of items that must stay in the foreclosed home: Appliances such as built in microwave, dishwasher etc. Cabinets and counter tops Furnaces and air conditioning units Plumbing and copper pipes Electrical wiring Light fixtures and ceiling fans Doors and hardware Flooring such...
FBI investigates foreclosure stripping in Phoenix
W ith Arizona foreclosures up by 600% since 2005, realtors are seeing more and more foreclosed homes being stripped right down to the bare walls. It is estimated that 85 to 90 percent of foreclosed houses under $200,000 have been stripped. Homeowners are taking carpet, tile, cabinets, sinks, light fixtures and even door knobs. Many of the items are showing up on Craig’s list and the FBI special mortgage fraud task force is now investigating. “When you sign the deed to the home, you agree not to devalue the home. Stripping it is devaluing the home and that’s illegal,” states FBI Special agent Julie Falferty. Not only is foreclosure stripping a felony but stripped homes have to be sold for 30 – 50% less than their full...