Welcome to Canadians in Arizona!

Foreclosed/Bank Owned:

Foreclosures in Maricopa Foreclosures in Maricopa are not as common as they were in 2008-2011. The reason behind the market shift is that in the recent years, home values have increased over 25%. Much more of the homeowner population has equity or at least closer to being in the "Black".

There are still some foreclosures out there and getting one at a discount can be worth the effort. Foreclosure numbers started to trend up in 2007 and reached the top in 2010. In 2007 and 2008 bank would take the home back in the foreclosure process and put a for sale sign on it immediately. The homes were commonly "trashed", cabinetry missing, carpet ripped up, trash and debris scattered on the inside, crayon and magic marker scribbled all over the walls (that weren't covered with holes).

Many buyers couldn't overlook the grime or smell. It was honestly too much work for them to buy one, spend a month cleaning it up when there was a decent house next door for just a bit more money. In 2010, the banks started giving their listing agents a bit of leeway to spend money to clean out, repaint and replace carpet. That money was well spent, the buyers could see themselves in this new looking home. The banks made that back in the increased sales price and the gap narrowed between Maricopa foreclosed properties and resale properties. A home that has missing flooring or missing cabinetry could only be purchased by a cash buyer. There are certain criteria for the home to be livable to get a loan on it. With the bank repairing the home it helped the market by giving everyone the choice of buying a foreclosure or a resale!

One suggestion that I can make for buyers looking for a Maricopa foreclosure is to consider a HUD home. A HUD home is a type of foreclosure. A buyer that will intend to live in the home as a full time resident gets a 10 day grace period to make an offer before investors are allowed to bid. After the 10 day head start, if there are no accepted offers, than investors can bid! HUD homes require different paperwork that a "normal" foreclosure. Please make sure that your agent has experience with HUD, because this is an important purchase!