I’m working on a Broker Price Opinion (BPO) for a lender owned property tonight. I pulled up this map and just had to share. Makes me crazy. Why?
Well, this is not ordinary. This is not typical.
To clarify, the gavels are pending foreclosures, and the map does not include the properties that have already gone back to the lender. To date, I’ve not seen so many in such a small area. Most of these homes are condos. Two bedroom units sold for over $200-300K in 2005-2006. Today, they are listing and selling for about $60K.
The question in my mind is how did this many owners get approved for loans and then default so quickly in mass?
I got my real estate license in December 2003, so I was basically on the sidelines trying to figure out to build a business watching more experienced, confident, and sometimes aggressive colleagues make a ton of money during the big real price run-up. Over the years, my business has continued to grow, while many real estate agents left the business. With all the craziness of this industry and what it’s done to our economy, I feel fortunate to have a strong, diverse business that helps people and creates a solid income for me.
Part of my business does come from listing bank-owned properties, which I’ve been doing since early last year. It’s a different type of business, and I’ve learned a ton. Besides tightening up my business practices, I’ve learned how to knock on doors, asking the occupants if they know the property they are living in has been foreclosed on. And these days, the now bank-owned homes usually have someone still residing in them, waiting for me to show up. More often than not, the occupants are tenants. They’ve seen the legal papers posted on their door. They know the bank will help them move on, by helping them recoup their lost security deposits and more.
I really don’t have the answer my original question. I can tell you that many of the people that I come in contact with are not sure what is next for them, but these days I do sense a calmer demeanor, than I did last year. Maybe it’s me being more confident about what I’m doing, or maybe people are starting to see that moving out and moving on, is really the next best step for them. Seeing a bit of light at the end of the tunnel.
Maybe it’s not so crazy after all. Maybe times are changing, and I’m just a little slow to catch on.
{ 3 comments… read them below or add one }
Dru-
I agree with your assessment of the people living in the foreclosed properties. How Real Estate Agents ever got the job of evicting people is beyond me.
Working with condos recently has led me to the same question. How did all of these properties go into foreclosure at the same time? As I watch many communities it is like watching a dark cloud that continues to shadow over the homes.
I was stunned to see areas in D C Ranch look like this last year. “Investors” They drove up the prices and they are walking away.
I think some condos are the best buys out there right now as long as the HOA is intact.
The imagery of those maps has caused my heart to race over the last year. Just when we think they are cleaned out more and more pop up.
More power to ya trying to get the BPO in the right place!
Thanks for the post. You are a awesome!
Easy. The condos were built in 2005 and most/all sold in 2006 at the very top of the market. So EVERY homeowner in the community is under water. So you get tons for foreclosures. So prices tank rapidly.
If you go to a nearby older community, you’ll find a small percentage of the homeowners bought at the top, became under water, were foreclosed on and drove down neighboring home prices.
The number of foreclosures drives down the prices. The number of foreclosures is largely driven by when the home was bought.
In that area, EVERY homeowner bought at the top. It’s like a little Town of Maricopa on Cave Creek Rd.
.-= John Wake´s last blog ..I’m quoted in Phoenix Magazine! =-.
Luetta, You’ve been tracking foreclosures a lot longer than I have. I’m sure you have a better feel for some of these areas than I do.
John, I can always count on you to point me to the obvious answer! Thank you. (And Congrats on your Phoenix Magazine quote.)