Foreclosures will continue to hit Arizona for the next few years since many of the ARMs will be recasting over the next three years. The local newspaper has estimated well over 128,000 ARMs will be ready to recast. Here are their options:
- Refinance if there is enough equity in the property or be accepted into the 125% offered by the Government
- Loan modification if they are upside down in their home for more 125%
- Short sale the home for less than what is owed on the mortgage
- Foreclose on the property
Higher mortgage payments and less jobs will send many Arizona households over the top and will face foreclosure. We are not out of this mess, yet. Many professionals in the industry are predicting another wave of foreclosures to hit the market. When? That is the big question from many Realtors. The banks continue to hold them on their books as less than performing assets.
I know many of the people I come in contact with each week obtain the pay option ARM. That means the buyer had the choice to pay 30 year payment, 15 year payment, Interest only, or deferred interest payment. The majority of these people picked the deferred interest payment which meant they were negatively adding on to their existing mortgage. So, that means their mortgage kept increasing as their home values decreased. These people are just avoiding the inevitable. People love to procrastinate and wait until the end. I have many people calling me now to short sales their asset before it is too late.
I predict that their will be a mad dash ARMs continue to reset and people have to make the higher payments. I would advise people to call me to sit down and discover their options at this point in time and not later. We have a CPA and real estate lawyer to look over all the options so that people are better informed when making decisions. People need many wise advisors during this life time. We are here to serve at the Real Estate and Beyond Network located in Phoenix, Arizona. Please visit our web site at www.DeliaTeam.com.
cited: http://www.azcentral.com/business/articles/2009/07/20/20090720biz-resets0721.html
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Thanks for this post about many people in Arizona that will have option reset ARMS. Their choices will be to refinance with equity, or be accepted into the 125% refinance offered by U.S. Government, loan modification, short list and sell the home, or foreclosure. Those are not attractive and are part of real life for folks in these situations.
These are the options over the next three years. So, I have catered my business to assist these people. Great input
Those do not look like great options. We have about three years to go in order to get out of this mess.
I say..that everyone gets a loan modification across the board....wouldn't the banks prefer to get some money..than none..
Thanks for stopping in Eric
Sue it takes time for banks to change their ways. I would think something is better than nothing.
OMG, Harry. This is awful....and the scary thing is AZ is not alone. You are right....we are in for a bumpy ride.
Coleen-prepare your business to assist people and it will soar
Wow that is a lot of homes to be foreclosed on. I guess I will be busy. Thanks for the info
Thanks for stopping in today