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Investing in Bank Foreclosed Homes in Fast-Growing Mesa

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By : John Cutts    99 or more times read
Investing in bank foreclosed homes in Mesa, Arizona is a feasible investment decision as there are a lot of foreclosure properties in the area and the growth prospects of the city are strong.

In the first quarter, a total of 45,198 homes entered the foreclosure process in the Phoenix-Mesa metropolitan area, a jump of 23.4 percent from the prior quarter and a surge of more than 9 percent from filings one year earlier. Mesa, which sits on a plateau east of Phoenix, has a median family income of $42,817 and is among the fastest developing cities in the country.

As a bedroom suburb to Phoenix, it is the second largest suburban city in the entire country and the third biggest city in Arizona, behind Phoenix and Tucson.

Investors and owner occupant buyers can also expect to explore more Mesa pre foreclosures and other pre foreclosures in Arizona, as total filings statewide surged in the first quarter by 22.4 percent from the prior quarter to a total of 55,686 filings.

A total of 34,244 pre foreclosures were posted statewide during the quarter, including 34,212 units notified of trustee sale and only 32 units still in the default stage. Another 21,442 units became bank foreclosed homes during the quarter, accounting for 38.5 percent of total statewide filings.

Arizona was third among states both in number of filings and in number of REOs, but second in foreclosure rate. A savvy real estate investor would explore any list of home foreclosures that includes Arizona properties, as there are more chances of finding lower-priced and therefore profitable homes in Arizona.

The Phoenix-Mesa area was seventh in rate of foreclosure among the 203 largest metropolitan areas in the country, with one foreclosure filing for every 38 homes in the area or 2.63 percent of all housing units in the area.

While reduced home values and toxic mortgages have been the major drivers of foreclosure in the metro area, unemployment has been another factor pushing more delinquencies and foreclosures despite an improvement in the unemployment rate from 9.2 percent in February to 8.9 percent in March. A total of 66,632 jobs have been lost in the Phoenix-Mesa-Glendale area since December 2007.

Although the housing crisis has forced out homeowners from their properties, the corrective measure of foreclosure has been enabling people who previously could not afford to buy homes to fulfill their dreams of home ownership by buying lower-priced bank foreclosed homes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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