Foreclosures in Town?
Posted by CityBlogAZ on May 28th, 2007
Can anyone speak to the issue of foreclosures in Chandler, Arizona? Foreclosures are up around the country due to the sub-prime lending practices. Is there any foreclosure impact on real estate in Chandler?
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I recently read an article in the Arizona Republic that spoke directly to this issue, which is definately a national issue, so yes it is affecting Chandler homeowners as well. The article went on to say that the number of Valley homeowners losing their homes to foreclosure has shot up 566% so far this year (through Oct ‘07). There have been 7,139 foreclosures in the Valley this year compared to 1,072 for the same period last year.
Not only have foreclosures increased, but in October alone, 3,438 homeowners fell behind on their mortgage payments. Many of these homeowners are looking for a way out, and many are trying to short-sale their homes (Getting approval from the lender to sell their home for less than what they owe on it).
Just looking through the MLS under Chandler homes for sale, I counted 35 short sales and 8 bank owned homes out of a total of 97 homes priced at or below $200,000. That means 44% of all homes at or below $200,000 in Chandler (on the MLS) have already had at least the first step taken towards foreclosure.
The rate of Valley foreclosures per 10,000 homes is highest, at 88.9%, in homes valued $400,000 to $449,999. I’m sure you will find a similar percentage in Chandler homes in that price range as well. The least affected homeowners are those with homes valued at $450,000 and above.
Fred Karnas, the new director of the Arizona Department of Housing says “The foreclosure problem in Arizona is only going to get worse,” so I’m pretty sure that includes Chandler.
Now, 4 months later, the market remains clogged with too many homes.
The reality is that many of the homes currently on the market have little or no chance of selling for one or more of three very simple reasons.
That leaves the homes that WILL sell in todays market. The “search” process has simply become more difficult due to the vast number of unsaleable homes clogging up the marketplace.
The process of finding the right home and the right terms requires a look forward and two calculations looking back to create a good transaction.
My team can make all this possible for your real estat dream.
I am Bob Seeley and I make dreams come true!
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