More buyers are earning from Scottsdale distressed properties for sale, as more homeowners decide to avoid foreclosure through short sales.
Since the launching of the Home Affordable Foreclosure Alternatives initiative in the first week of April, one Scottsdale-based real estate firm which decided to focus on short sale reported that it has received more than 10,000 HAFA requests in Scottsdale and in other cities where it operates. It hopes to double its HAFA completions after the Treasury released new guidelines to increase the incentives for mortgage servicers to $2,200 for every short sale resolved.
As Fannie Mae and Freddie Mac were also included in the new guidelines, short sales are expected to grow tremendously as about 55 percent of mortgage loans in the country are owned by Fannie and Freddie and the default rates for these loans are rising. At the end of March, the default rate for Freddie loans rose to 4.13 percent and the default rate for Fannie loans rose to 5.47 percent.
Currently, one major foreclosure listings provider has 3,697 Scottsdale distressed properties for sale, including bank owned units ready for sale. These properties make up 42.4 percent of all available homes for sale in the city. A report from the Arizona State University, meanwhile, said that 22 percent of all Scottsdale homes sold in June were foreclosures.
The ASU report also said that foreclosure filings surged in June in Maricopa County, where Scottsdale is situated, by 18.7 percent to 3,835 filings in June from 3,230 filings in May. The median price also fell over the month by $1,000 to $143,000 in June, although it marked an increase from the $134,000 price median in June last year.
Additionally, the number of distressed homes in Arizona reached 14,424 units in June, including 5,894 lender-owned units and 8,522 units posted for trustee sale. With these relatively high numbers, investors and other buyers can find homes fixer uppers to repair and rent out or resell or buy lower-priced Scottsdale distressed properties for sale as short sale investments.
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