Phoenix Bank Foreclosures Market Is It Healthy?

by Peter Vernon on cities

Interestingly, while property prices have witnessed a downward trend, Arizona bank foreclosures have gone up by 27%. And if you are considering purchasing property in Arizona, then you must seriously consider Phoenix bank foreclosures, Arizona. Statistics have their own unique way of subscribing to facts, and they suggest that despite the fact that the number of homes being sold in Phoenix decreasing the ones that did sell have sold at a considerably higher price than expected.

So what does this trend indicate? Two important and interesting aspects – first that even with an expensive price tag, Phoenix real estate is selling and the wealthier are not as affected by the downslide in Arizona bank foreclosures properties as their less wealthy counterparts. Secondly, those people who have been speculative buyers, (maybe like you and me) are having a bad time as they can’t keep nor sell their property as the prices are rising rapidly and buyers are being spoilt for choice.

Furthermore, according to some experts, this rise in bank foreclosures in Phoenix, Arizona was anticipated, since the region’s residential price increase had slowed sharply during the first half of this year. But there is silver lining to this dark cloud. Since the unemployment rate in Phoenix is low, the cascading effect on foreclosures prices can be insulated.

With tighter loan parameters, and “low-down” etc becoming harder to get, there has been further increase in the foreclosures. Banks lending money to buyers, have now initiated a “short-pays” process. Say you take a loan from the bank and are unable to pay it leading to foreclosure, under this process the bank can forego a portion of your loan in order to ensure that it can be sold. So while in a conventional situation the bank may recover 70-75% of their debts after sales, by short pay process the Phoenix bank foreclosures, Arizona may recover as much as 90% for the bank.