The Arizona Real Estate Foreclosure market is seeing an increase in foreclosure notices according to Manny Caballero of Encompass Realty ®. Today in single family detached homes that are about 6,710 properties that are REO, or bank owned and about 44,613 single family detached homes on the market making REO representing about 15% of the Arizona real estate resale market and that percentage is growing.
In speaking today with Anthony with AZCO Properties says that a good percentage vacant REO vacant properties are getting broken into and what is getting stolen are taking cooper plumbing, AC units and more.
Manny Caballero of Encompass Realty ® stated he just got off the phone with Ocwen they stated Ocwen is not doing short sales? What is Ocwen Financial Corporation up to? Manny is also stating Indy Mac is charging to process a real estate Short Sale.
take example of a short sale with Encompass Realty ® who is currently negotiating with a bank:
Property Purchased in March 2005 with a $ 143,000 purchase price. The first mortgage is foreclosing with a sale date May 21st, 2008. There was a second mortgage taken out by the owners to remodel their house. The second mortgage is with Washington Mutual, aka WaMu.
In a real estate foreclosure situation when the first mortgage reaches the foreclosure auction date and nobody bids to purchase the property, it goes back to the bank as a REO, which is a good chance in today’s real estate market. What happens to the second mortgage? The second mortgage loses their investment.
So with the foreclosure sale date approaching, Encompass Realty ® has been trying since early April 2008 to obtain a short sale approval on the second. The second mortgage investor would get back 25% of the loan amount which is unheard of in a real estate short sale. Normally a second would only be allowed to bet only $ 1,000 to $3,000. Washington Mutual doesn’t return phone calls. Stay Tuned.
Realtors may want to rethink making offers on real estate short sales. Unless you can wait months, Manny states he rather make offers on REO and real estate resale’s.
