By now, newspapers and media have dissected the reasons for the recession, from the onset of sub-prime loans to the loss of jobs, value in stocks, malfeasance of heads of financial institutions, results of deregulation, etc. Arizona unwillingly shares its place in the top 4 states for foreclosures, short-sales, and REOs. Statistics state that this phenomenon started in December ‘07, and has progressed ever since.

How has this affected the market here in the Valley?

Our Valley consists of 23 small cities surrounding the city of Phoenix: Apache Junction, Avondale, Buckeye, Carefree/Cave Creek, Chandler, El Mirage, Fountain Hills, Gilbert, Glendale, Goodyear, Litchfield Park, Maricopa, Mesa, Paradise Valley, Peoria, Phoenix, Queen Creek, Scottsdale, the Sun Cities, Surprise, Tempe, and Tolleson.

Some of these cities are on the outskirts where the prices and values were lower, there was much new construction, and these areas, especially Queen Creek, Buckeye and Maricopa, are the hardest hit now with the amount of foreclosures.

Although I have been in real estate in Arizona for over 30 years, and went through the period of the Savings & Loan debacle in the late 80’s, when we had to do some creative financing, such as seller-carrybacks, wraparound mortgages, etc. there has never been a precedent for what we as real estate agents and the Americans are facing now. I have to learn the how-to’s of short-sales, the mechanics of foreclosures, and the difference in REOs. I’ve taken course after course to become knowledgeable to be able to help my buyers and sellers through the process.

I’ve put together a series of topics pertaining to this trend, and will be updating this report weekly. If you or anyone you know needs or wants to know more about short-sales, foreclosures, REOs, BPOs and Loan Modification, these articles may help.

Unfortunately, the last few months of sales have been 78% of these. They’re time-consuming, and sometimes buyers are frustrated going through the process. There are sometimes multiple offers on short-sales during the time the seller is negotiating with the lender or lenders. With REOs, the lender now holds the property and offers get made to the lender directly through the listing agent.

Be sure to tune into Facing the Mortgage Crisis – a new public television feature.