What happens when foreclosure notices go up 240% in the fastest growing suburb in the country?

Well, foreclosures happen of course.

Foreclosures are a terrible thing for many reasons. First, they displace homeowners. Second, if not immediately occupied again they often become a thorn in the side for the neighborhood who has to pick up the HOA fees that now aren’t getting paid. Third, though the banks don’t “dump” the homes, the prices they sell at often end up forcing up other comparable homes to sell for cheaper as well.

But as the market continues to decline, this is par for course. KTAR reported:

Arizona is now one of the top 10 states in the country in the number of foreclosures. But is it going to stay that way?

Realtor Russell Shaw says most of the foreclosures are happening on what he calls the edges of the Phoenix area.

“Buckeye, Goodyear, Chandler — that kind of thing — Apache Junction, Queen Creek. That is where the bulk of the foreclosures will occur.”

That’s where land is plentiful and many investors bought houses they now can’t afford.

As for the future, Shaw says things will stay this way for awhile, but “it’s just almost like Nostradamus. I’ve seen the future. It’s a lot like the past, only longer. So, nothing phenomenally bad is going to be happening.”

But if there is a home in foreclosure near you, it could lower your home’s value, says Shaw.

“It’s not that the lenders who take them back are going to try to dump them at low prices, they’re just going to be selling them at market. But it does hurt the area.”

I think a lot of people will be looking for someone to blame as this continues to worsen.

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1 Comment »

2008-01-29 16:27:31

[...] and the economy, will likely just be used to help folks stay in their homes one more month while they try to avoid foreclosure. The House, seizing a rare moment of bipartisanship to respond to the economy’s slump, [...]

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