Unless you've been living under a rock for the last couple of years, you probably know that the number of homes in foreclosure in the Phoenix area has skyrocketed. While this was likely a predictable event, given the huge runup in home prices since 2004, it is nevertheless a troublesome environment in which to buy or sell a home.

                                                             The Good
Foreclosure is always a tragic circumstance. Whether the owner is a homeowner whose finances simply cannot support the mortgage payment, or an investor that just got in over his head and has not been able to properly manage the property... someone needs help. Buying a home in foreclosure or preforeclosure actually does help the owner avoid the drastic impacts that a completed foreclosure would have on his credit. It's a simple fact that financial loss is inevitable, but certain benefits are possible for the seller when you buy the home. And, of course, you can benefit financially by being able to purchase the distressed property for "pennies on the dollar." It can be a good deal for everyone.

                                                               The Bad
But, buying a home in such circumstances is not easy. Remember that when the home is being sold for less than the mortgage amount owed on it, the lender always has the right to approve or reject any offer made on the home. And dealing with a mortgage lender is quite different from dealing with an individual homeowner. The lender is a corporation in the money business, not a homeowner that has lived in the home and the neighborhood. With lenders "the bottom line is always the bottom line!"

                                                               The Ugly
In the process of negotiating the purchase of a home directly from a lender one normally deals with a loss mitigation representative. This person likely has anywhere from a dozen to a hundred files on his desk that he has to analyze and negotiate. He already knows the bank's loss limit and the lowest price the company is willing to entertain... but do you think they'll ever tell you that? NOT! The normal process involves leaving multiple voice mail messages without receiving a returned call. This, of course, translates into hours and hours of time spent just trying to speak with the rep. Anyone with a low tolerance for frustration and bureaucracy should think twice before attempting this on their own.

                                               WE CAN HELP
We at Phoenix Home Finders understand these issues and have experienced the process. We also understand the market and the emotional environment in which such a transaction is conducted. We can help you navigate this real estate "minefield" and come out on the other end with the property you want at a price you'll be happy with. Take just a minute to contact us with the short form below. Tell us a little bit about what you're interested in, and we'll get back to you quickly to discuss your options and the next step you ought to take. I know we can help, and we're pleased to do so.