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Valley Arizona Foreclosures

Here are some options and resources for a homeowner in default.

Contact the Lender or a HUD-Approved Housing Counseling Agency
Although a common response to a problem making house payments is to ignore the lender, that is the worse course of action for a homeowner in default. The lender must be contacted as soon as possible.

* To find the lender’s contact information, check the loan billing statement, coupon book,or the list of lender contacts at www.hud.gov/offices/hsg/sfh/econ/smhlend.cfm.
* Ask for the lender’s loss mitigation department (or other department that handles negotiation of loans in default); explain the situation and find out if there are any loan workout options.

If the homeowner does not want to talk to the lender directly, contact a HUD-approved housing counseling agency, who can contact the lender on the homeowner’s behalf.

* To find HUD Approved Housing Counseling Agencies, go to www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=AZ or call (800) 569-4287 or TDD (800) 877-8339.

These agencies include:

* AZ LawHelp: www.azlawhelp.org/viewresults.cfm?mc=3&sc=20
* Neighborhood Housing Services of Phoenix: www.nhsphoenix.org/
* NID-Housing Counseling Agency: www.nidonline.org/
* The HUD-approved National and Regional Housing Counseling Intermediaries also provides counseling resources: www.hud.gov/offices/hsg/sfh/hcc/nrhci.cfm

Information the Lender or Counselor Will Need
The lender or counselor will need a variety of information to determine the homeowner’s options, such

* Loan information
* Monthly income documentation (pay stubs, tax returns)
* Monthly expense documentation (utilities, child care, car payments, etc.

The lender may also require the homeowner to complete and return a loan workout package, which contains information, forms and instructions, before the lender will discuss the options.

Possible Loan Workout Options
There are a number of loan workout options available that will allow a homeowner to keep their home, such as:

* Reinstatement: Paying the total amount owed in a lump sum by a specific date in exchange for forbearance.
* Forbearance: An agreement to reduce or suspend payments for a short period of time.
* Repayment Plan: An agreement to resume making monthly payments with a portion of the past due payments each month until they are caught up.
* Loan Modification: An agreement to change the terms of the original loan to make the payments more affordable. For example, missed payments can be added to the existing loan balance, the interest rate may be modified or the loan term extended.
* Claim Advance/Partial Claim: If the loan is insured, the homeowner may qualify for an interest-free loan from the mortgage guarantor to bring the account current. If so, the homeowner will be required to sign a promissory note and a lien will be recorded against the home until the loan is paid in full.

The Option to Refinance with Another Lender
If the lender will not agree to a loan workout, the homeowner may be able to refinance the loan with another lender. For information about refinancing, go to

* NAR Home Financing Information: www.realtor.org/home_buyers_and_sellers/smart_home_financing.html
* Arizona Mortgage Advisory Council: www.azmortgageadvice.com/

Sale Options to Avoid Foreclosure
If a loan workout or refinance is not an option, the homeowner’s best course may be to sell the home. The lender may work with the homeowner to enable the homeowner to sell the home and avoid a foreclosure. The lender may agree to a sale on the following terms:

* Work Out Sale: An agreement not to foreclose for a specific amount of time to allow the home to be sold and the loan to be paid off.
* Short Sale: In a situation where there is more debt owing against a property than the property’s value, the lender may agree to allow the property to be sold for less than the loan amount and/or accept less than (or “short”) the amount owed as payment in full. There are tax implications and other issues to consider before entering into a short sale agreement. AAR has developed a short sale addendum to the Listing Agreement, www.aaronline.com/documents/SSAListing.pdf, and a Short Sale Addendum to the Residential Resale Real Estate Purchase Contract, www.aaronline.com/documents/SSARPC.pdf, to assist in a short sale transaction. For more information, see NAR’s Field Guide to Short Sales, www.realtor.org/libweb.nsf/pages/fg335
* Assumption: The lender may allow a buyer to assume the loan and purchase the property even if the loan is non-assumable.

Deed-in-lieu of Foreclosure
The lender may allow a homeowner to “give back” the property. This option may not be available if there are other liens recorded against the property. For more information, go to

* HUD FAQs: www.hud.gov/offices/hsg/sfh/nsc/faqdil.cfm
* HUD Requirements: www.hud.gov/offices/hsg/sfh/nsc/rep/dilfact.pdf

Be Aware of Predatory “Rescue” Scams
Homeowners worried about foreclosure may be susceptible to predatory “rescue” scams such as:

* Loans with high interest rates and unaffordable repayment terms
* Loan assumptions where the homeowner is not released from liability on the loan
* Offers to repay the loan or sell the property if the homeowner signs over the deed
* Counseling agencies that offer counseling for a fee when it is available at no cost.

Remember, if it sounds too good to be true, it probably is. Report suspected scams to the Department of Financial Institutions at fraudline@azdfi.gov .

The information contained above was compiled from the following sources:

* www.realtor.org/home_buyers_and_sellers/protect_your_home.html
* www.hud.gov/offices/hsg/sfh/econ/econ.cfm#1
*www.freddiemac.com/corporate/buyown/english/owning/avoid_foreclosure.html

Tips for Avoiding Foreclosure (HUD):www.hud.gov/foreclosure/index.cfm
The Foreclosure “Rescue” Racket (Business Week): www.businessweek.com/magazine/content/07_26/b4040041.htm
Credit Counseling & Debtor Education (US Department of Justice): www.usdoj.gov/ust/eo/bapcpa/ccde/
Landlord Tenant Assistance: www.az211.gov/index.php?option=content&task=view&id=64
Eviction or mortgage foreclosure assistance: www.housingaz.com/ShowPage.aspx?ID=29
Hope Now: www.hopenow.com
Neighbor Works America: www.nw.org/network/home.asp
Homeownership Preservation Foundation: www.995hope.org
My Money Management: www.MyMoneyManagement.net
AZ Law Help: www.azlawhelp.org

The foregoing is for informational purposes only and is not intended as definitive legal advice. You should not act upon this information without seeking independent legal counsel.

Reprinted with permission from AARonline.com, the website of the Arizona Association of REALTORS

Arizona Foreclosures By Zip

Foreclosures in Arizona are more abundant than ever. While this is true,there aren’t as many search tools to search for Arizona Foreclosures by zip. We found this really great sophisticated mapping system by Diverse Solutions that lets you search for Arizona foreclosures by zip.

It is really easy. All you do is go to http://awardrealty.com type the zip code in the search window at the top of the map, scroll down to “foreclosures” on the left side, and check it, and then go to the bottom and click “search”. It is that easy, and now you can browse Arizona foreclosures by zip!

Peoria Arizona Foreclosure

Peoria Arizona Foreclosures are becoming more abundant everyday. This is bad news for people living in and around these foreclosed homes, but good news for first time home buyers, or even second and third time home buyers.

Peoria is a great city located just North West of Phoenix off of the HWY 101.Peoria offers lots of outdoor recreation, shops, and restaurants.

Sometimes it can be difficult to search these Peoria Arizona Foreclosed homes, but Award Realty has come up with a way to make is simple for you.

You may view Peoria Arizona Foreclosures by clicking here.

Homes for Sale Arizona

Homes For Sale Arizona

I found it interesting that as new nationwide figures were released yesterday showing an 11% increase in new home sales, the nation is nearing another huge round of foreclosures. We are seeing continued construction of Arizona new homes, while the Case Shiller Index showed Phoenix with a year-over-year price decrease of 34% in May, 2009.

Most leading indicators seem to show a continued decrease in prices throughout the next 12-18 months, yet builders continue to build homes to add to the inventory. Rental homes in Arizona are in greater demand as prospective home buyers opt to rent until they consider the time is right to purchase. So what is going on?

Many economists and building industry experts believe that there may soon be a housing shortage, due to investors and first time homebuyers absorbing the lower priced inventory at a faster rate than new construction provides.

As prices continue to drop, the sale-to-rent ratio becomes more attractive to investors. As mortgage payments on homes for sale in Arizona become attractive compared to monthly rental rates on rental homes in Arizona, investors will buy for the attractive return on investment.

Believe it or not, Arizona new homes and existing homes could be in short supply in the not-too-distant future.

The Arizona MLS

The Arizona MLS System

As a real estate practitioner, you’ve probably encountered the frustration of navigating around our Arizona MLS system. There is the Arizona Regional Multiple Listing Service (ARMLS), which many people refer to as the Arizona MLS, the Phoenix MLS, the Tucson MLS, the Prescott MLS, the White Mountain MLS, etc. This challenge of regionalized MLS providers can make it difficult when agents are trying to assist buyers and sellers. It can even be difficult to contact specific real estate companies or agents due to the wall between MLS systems.

Talks are underway to unify the MLS system statewide into one true Arizona MLS, which in my opinion would be a wonderful benefit to all agents, buyers and sellers in Arizona. There may even come a day when there is one nationwide MLS system. It is interesting to note however, that some area MLS providers and brokers are opposed to this unification for fear they might lose a perceived advantage over Realtors® in other areas.

This protectionist notion reminds me of a similar event that took place several years ago with the Sun City MLS. Sun City brokers had their own listing service. When we proposed a unification of the Sun City MLS system with the Arizona MLS, the largest broker in the area fought the change tooth and nail, fearing their loss of dominance in the market. Fortunately, the merger occurred and everyone survived quite nicely. Now ARMLS includes the Sun City areas as a part of their service and agents valley-wide can access properties for sale that were previously not available because of the smaller MLS system.

While it is important for Realtors® to follow the rules when it comes to not practicing outside their area of expertise, the opening up of information into one Arizona MLS system would certainly better serve our buyers and sellers to provide them with the best opportunity to meet their real estate needs. After all, isn’t that our goal?

If you would like to view our Arizona MLS Search Engine please click here.

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