RealtyTrac® the leading online marketplace for foreclosure properties, released today its Midyear 2010 Metropolitan Foreclosure Market Report. The news was grim. It showed 154 of the 206 U.S. metropolitan areas with a population of 200,000 or more posted year-over-year increases in foreclosure activity – that is an astounding 75 percent.
Four states — Florida, California, Nevada and Arizona — accounted for all top 20 metro foreclosure rates. Florida led the way, with nine of the top 20 metro foreclosure rates, followed by California with eight, Nevada with two and Arizona with one.
The Phoenix-Mesa-Scottsdale metro area in Arizona posted the nation’s seventh highest metro foreclosure rate, with 4.28 percent of its housing units (one in 23) receiving a foreclosure filing in the first half of 2010.
Now we’ve seen some signs that the market is stabilizing and then we get this news. It can be really confusing and difficult to predict. What does it all mean?
Well, it’s good news if you’re a buyer interested in a distressed property. There were over 5,000 foreclosure sales in Arizona in June of this year. The average savings for the homebuyer was 25 percent below market. Not too shabby.
However, buying a foreclosed property isn’t always easy and can be a headache. But the savings can be substantial. What to do? First, you need to find a realtor who has dealt with foreclosures or short sales. You don’t want to enter this alone.
There are differences in buying a home at auction versus from the bank. If you’re not careful, you can pay too much – most foreclosures are sold at only 5 percent below market. And with mortgage rates as low as they are, there is a lot of competition for the same foreclosed homes.
Besides all that, it can be really emotional. It’s not always pleasant or joyful reviewing foreclosures. This is why I’m going to tackle some of the foreclosure issues here on my blog during the month of August. If you have any specific questions, let me know and I’ll make it my blog topic. But given the interest, demand and conflicting information about short sales and foreclosures, I thought it might be good to explore some of these issues more in-depth: one issue at a time.
I won’t completely neglect other topics but let’s take some time next month to understand the foreclosure process.
As always, contact me if you’re considering purchasing a distressed property. I’m here to help.
Subscribe: 
