Nearly 25 Percent Discount for Arizona Foreclosures

by Simon Lindsay on States

Buyers of Arizona foreclosures for the first three months of this year got substantial price discounts, as sales of distressed and repossessed homes accounted for more than 50 percent of all homes and condos sold statewide during the quarter.

The average sales price for all the distressed and foreclosed homes sold was $138,021, lower by 24.8 percent than the average price of all non-foreclosures sold. Bank owned foreclosure homes, meanwhile, were sold at an average price discount of 29.5 percent and pre-foreclosures were sold at an average discount of 18.1 percent.

Many of those who acted on their plan to find foreclosures in Arizona were not frustrated, as 17,307 short sales and foreclosure sales were completed during the said quarter, the third highest statewide total during the quarter.

Sales of Arizona foreclosures are among the biggest in volume from January to March, as Arizona has been among the top five states hardest hit by the housing meltdown. Last year, more than 163,000 homes in Arizona entered foreclosure, marking a jump of 40 percent from the previous year and putting the state second on foreclosure rate charts and third on foreclosure total charts.

In the first three months this year, Arizona was again second in foreclosure rate, with one foreclosure posting for every 49 residential units in the state. Nearly 56,000 houses entered foreclosure during this quarter and more than 38 percent of these or 21,442 units were repossessed by mortgage lenders like Wells Fargo.

Wells Fargo foreclosures in the state are still rising in number despite the establishment of a Wells Fargo Home Preservation Center in the state. As of the latest Treasury Department report on the performance of lenders in carrying out the Home Affordable Modification Program, Wells Fargo put only 40,759 mortgages nationwide into permanent modifications out of the 171,009 trial modifications started.

The report also showed that the overall count of Arizona foreclosures was reduced by 39,983 trial and permanent modifications extended by banks since the start of the HAMP scheme through May.