subject: How To Search An Arizona Foreclosure [print this page] A quick search online for Arizona foreclosure listing services bears plenty of fruit. There are more foreclosures in recent years than almost any other period in our history. Unfortunate people who have lost their ability to pay their mortgages due to illness, loss of income, and divorce are on the rise. The trend began in the near 2005 and became worse over the next five years.
There are many reasons properties go into foreclosure but it is rarely instigated by the bank that holds the lien. In most cases, the bank will have done everything it can legally do to avoid a foreclosure. Most TV show have a mean banker bad person who wants you out or else. In the real world, a bank that sits on a portfolio full of foreclosed property instead having of healthy mortgage payments coming in is a bank that is losing money. A bank is not a Realtor.
Buying a house at a foreclosure auction sounds much better than it sometimes is. While there are great deals to be had, often times, the purchase can go sour. The location of the property, the condition of the property, and the amount of the original mortgage can play huge factors in a blind bid or non-inspection auction. Caution is suggested and you may want to hire a Realtor who has experience in foreclosed property.
Many interested parties buy foreclosed auction property as an investment. They will take the house, improve it and resell it usually at a large profit, depending on how much work the property needs and how well they manage the work costs. This process is known as flipping and has become very popular. The other factor involved with getting a good return for flipping is the new market value of the property and a fast turn over at asking price.
Other types of foreclosures are auctioned as Tax Deed Sales and Tax Lien Sales. The laws for all foreclosures vary from state to state. If you are unfamiliar with a particular states laws governing foreclosed property, you should check the local government websites or check with most of the local foreclosure listing services. In some states, the foreclosure is handled by the courts.
The most popular is the typical Tax Deed Sale. This is where the deed to the property is auctioned off to pay the interest or taxes that are behind. The auction winner pays these fines and takes the deed. In many states, the government will handle these auctions.
Tax lien sales are a little different from tax deed sales. In a tax lien sale, it is the lien or mortgage that is auctioned off. The purchaser then has to collect from the defaulter. If he cannot collect on the lien, the purchaser can initiate a tax deed sale. This process is less desirable than a deed sale but it can still be a profitable transaction.
Foreclosure laws vary from state to state but not very widely. Most states adhere to the same principle rules with the exception of the time a defaulted property owner has to repay a tax lien after the sale. This can vary from 30 days to five years, depending on the state laws. The good news is that foreclosures, even Arizona foreclosure are finally leveling out and the financial crisis is beginning to improve.
