Arizona Foreclosures

Market study shows that foreclosure properties in Arizona and the rest of the nation sell for an average of 22 percent less than typical home sales. Whether you’re in the market for a Southwestern-style home in Scottsdale, a commercial property in Phoenix or a Tucson investment property that you can turn around and sell for profit, you have several options for finding foreclosure property listings in Arizona.

Foreclosure activity in Arizona climbed three percent in July compared to the month before, according to a new online report.

Bust still the “Foreclosures continue to rise in Greater Phoenix resale market”

Foreclosure properties in Arizona come into being when homeowners or business owners miss their mortgage payments and default on their loans. Arizona foreclosure properties are sometimes referred to as Arizona distressed properties.

When owners don’t pay their fees, everyone suffers. All owners are obligated by law to pay their share for the operation and maintenance of the complex. Non-payment has consequences, and foreclosure is one of them.

There are three stages in the foreclosure process for a foreclosure property:
1. Stage 1 — Pre-foreclosure
2. Stage 2 — Foreclosure auction
3. Stage 3 — Real Estate Owned (REO)

In Stage 1, the homeowners who have missed at least one mortgage payment are considered to be in pre-foreclosure. Savings of 20-40 percent below market value are common with pre-foreclosure properties in Arizona.

In Stage 2, the Arizona foreclosures are sold at auction by lenders to the highest bidders. Savings of 35-50 percent off market value can be achieved when buying at auction.

In Stage 3, when there are no bidders at the auction or the lending bank is the highest bidder, properties become bank-owned foreclosures. In Arizona, savings are usually reduced when buying property from the bank.

Several sad stories were published by the Forum Publishing Group:

A woman in Arizona was evicted from her home of 18 years after it was foreclosed because she could no longer pay her maintenance fees. An owner in California lost his home to foreclosure when he didn’t pay $600 in fines. His unit, worth more than $300,000, was auctioned and sold to someone for $2,000, according to his attorney. While most owners pay their maintenance fees as they are obligated to do, a rising number have fallen behind for various reasons. Many condominium owners are older people and an increase in maintenance fees, dues, or special assessments is hard to come by when on a fixed income.

What are the consequences to the nonpaying owner?

The association usually has a collection policy that was approved by the board and is implemented by the board or management company. Normally the procedure is: late fee added to owner’s account, collection letter sent from the board, Management Company, or association’s attorney, a lien filed, and eventually a foreclosure initiated. The owner can stop the collection action at any step in this process by paying the overdue amount and any fees connected to the collection action.

What are the consequences to the paying owners?

Nonpayment of the association’s fees leaves the paying owners “holding the bag.” Most associations plan their annual budgets as tightly as possible in order to keep the fees low. The board has a legal obligation to keep the complex in good condition to preserve everyone’s property values. It cannot let maintenance slide because someone doesn’t pay his or her fees, for whatever reason.

What can the association do?

There are some options. Depending on the severity of the problem and the bounds of state laws and regulations, a few of them are: borrow money from a bank or from the association’s reserves; reduce contributions to reserves; cut back on amenities and services; delay property improvements; increase monthly fees and levy special assessments. Associations cannot abandon their obligations just because the funds aren’t adequate.

We have listed helpful tips to make things comfortable, as below:

• Look for providers of foreclosure listings in Arizona that offer neighborhood reports and sale comparisons.
• Some providers of foreclosure listings in Arizona also offer loan and downpayment programs via their websites.
• Arizona commercial foreclosure properties offer some of the biggest savings off market value.

The truth is end of the day, even though we can all sympathize with those in financial hardship, community association living requires all owners to pay their percentage of ownership of each year’s budget. The board of directors must be diligent about collection to protect all owners from the financial burden nonpayment causes.

Please do share your views with us.