We’ll see as many foreclosures and short sales as we did about 10 years ago. They have since tapered off, which is a good thing for the economy, but there are investors out there still looking for them and when a good deal hits the market it won’t be on the market for long.
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A foreclosure means that the property has already been acquired by the bank and hopefully the previous owners no longer reside there. This is different than a short sale. A short sale is where the owners work with the lender or the bank to sell the property for less than they owe on it. We don’t see a lot of short sales these days because values have gone up, but a foreclosure means the homeowner simply stopped paying. This could’ve been due to unforeseen circumstances, job loss, medical issues, or even death. The previous owners have stopped paying and it takes quite a while after a missed payment before the property is in foreclosure but once it is, it typically needs quite a bit of help in the form of repair, upgrades, or replacements.
Are Mesa Arizona real estate foreclosures less expensive?
Naturally, we think that a foreclosure is a good deal. and commit no but how good of a deal? We have to offset the lower value with the number of repairs a home might need. As of the publishing of this post, there’s a beautiful six-bedroom home in Mesa built in 2003 with over 5200 ft.² of living space priced just under $500,000. The home literally needs nothing but furniture.
However, this is not always the case. Some properties will need a ton of work and that’s usually reflected in the price. Foreclosures can be anywhere from 5% to 30% below market value depending on how much work the property will need.
Also, some lenders will not loan money on a foreclosure property, especially if it is uninhabitable. If you’re planning on an FHA or VA loan, the home it needs to be in good condition and most lenders don’t want to deal with a foreclosure or short sale with these types of loans.
Start your online search here for all bank-owned and Mesa Arizona real estate foreclosures or contact my office to be notified immediately when a listing that fits your search criteria and price becomes available.