This table represents the number of trustee sales (foreclosures) per day in July 2011.
| Monday |
Tuesday |
Wednesday |
Thursday |
Friday |
| |
|
|
|
1 – 149 |
| 4 – 0 |
5 – 93 |
6 – 197 |
7 – 143 |
8 – 187 |
| 11 – 150 |
12 – 192 |
13 – 218 |
14 – 148 |
15 – 126 |
| 18 – 178 |
19 – 188 |
20 – 161 |
21 – 191 |
22 – 129 |
| 25 – 146 |
26 – 185 |
27 – 120 |
28 – 153 |
29 – 104 |
With July 4th being a holiday, we had no foreclosures. The total number of foreclosures in July 2011, in Phoenix Arizona and surrounding cites (Maricopa County), is 3,720. This can be compared with 3,839 in July of 2010. Overall foreclosures in Maricopa county are up pretty significantly over the first half of they year. This is not just negative news. Notice of trustee sales, which would indicate future foreclosures, are down by over half over the first part of this year. That would indicate that the second half of this year would see significantly LESS foreclosures then the second half of last year or the first half of this year. And as always we would expect to see an artificial drop off during the holidays when lenders are reluctant to foreclose for the bad press that it brings.
Just because a creditor begins a trustee sale (foreclosure) doesn’t mean they are going to complete it. The debtor (home owner) could pay the debt, the creditor could come to terms with the debtor which is a process called forbearance. Or the creditor could decide not to foreclose at this time due to inability to get sufficient money from the asset or for other reasons. The following table shows how many foreclosures were slated to finish in July 2011 and the actual outcome.
| Status |
Count |
| Cancelled |
2102 |
| Sold to 3rd party |
1673 |
| Sold to bank |
2047 |
| Total |
5822 |
As you can see 5,822 foreclosures should have finished up in July but only about 3,720 actually did. The property that was sold to a bank is certain to come back on the market at some time and probably quickly. The property sold to a 3rd party MAY come back to the market. This will depend on the person buying it being an “flip” investor, buy and sell it quickly. Or perhaps a buy and hold investor. Also, it is important to note that 36% of the properties slated for foreclosure never even sold at the trustee sale. This means the bank worked out a forbearance agreement with the current homeowner or the bank agreed to terms on a short sale. This number is pretty common about one third of foreclosures we hear about never take place for one of those two reasons. Since creditors delivered about 4,500 notice of foreclosures in July you could assume that in 6 months about 3,000 will actually be foreclosed on. Significantly lower numbers then we are looking at right now.
If you are in Arizona and suffering financial distress Powerhouse Realty can point you in the right direction to help you solve your problems. We always recommend appropriate counsel insurance, legal, tax and accounting.
Source of data: Laura Wrigley at First American Title 602-261-3592 for all your escrow and title needs.
