Bank Owned Homes for Sale in San Tan Valley – Vanishing???
While that is a summary of what I wrote about in a previous blog post based on stats from the Cromford Report, I been in a number of conversations recently involving listing agents of HUD homes and they seem to believe they will be an increase in HUD homes for sale on the market in the near future. How can this be I thought we had moved most of the distressed property, that had been purchased at inflated prices back in 2006-2007? Here in Arizona we move the distressed property very quickly (short sales being the exception).
First of all there are always some people that lose their homes, even in prosperous times, medical bills can happen, death, divorce, even job loses happen in good economies. That being said, the reason these agents believed there will be more HUD homes for sale in the future is because back in 2006 less than 3% of the mortgages were FHA backed, whereas today over 40% of all mortgages are FHA backed. Ok now I can believe it is possible (that’s over 1300% increase). And then this morning I go out to HUD’s website and find a new listing, and I recognize is in a development that started selling after the market crash, they lived in the house less than 2 years bought in September of 2009, after the drop, and still lost the house, and now HUD is selling it, so I can believe it could happen.
If this happens we will no doubt see another shift in our market, Investors have been driving the market the past couple of years, seeing bank owned homes for sale in San Tan Valley as well as elsewhere as an opportunity to invest in a house for thousands for dollars less that it costs to build that same house. But as reported previously the inventory of those bank owned homes for sale in San Tan Valley has been diminishing.
The significance of an increase in HUD homes for sale would have is, HUD will give owner occupants first chance to bid for the house, Investors typically will be allowed to bid after 30 days on the homes left. This will provide owner occupants who see the ability to buy a home for thousands less than they could build the same house for as an opportunity
The danger for these potential owner occupants could be if they intend to use FHA, there has already been a FHA appraisal done, typically the listed price, if in this sellers market where multiple offers are common, refer to previous post 27 offers on 1 house, they, if they bid over the listed price ( to increase the chance of winning the bid) in this case, would have to be prepared to bring money to the table at closing. Which for your dream house at less than the cost to build shouldn’t be a problem, but you probably don’t want it to be a surprise either.
To search bank owned homes for sale in San Tan Valley.
To search HUD homes for Sale in the southeast valley.
This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.