The Phoenix real estate market had an all-time record number of foreclosures in 2009 – 41,000 Phoenix foreclosures represented 35% of the existing home sales last year. That might sound like bad news, but it’s done a lot to get rid of some of the excess inventory of unsold Phoenix homes. As that inventory continues to shrink, we get closer to a place where supply equals demand (and then Phoenix home prices resume their typical appreciation).
Already, in 2009 Phoenix real estate prices rose month-over-month, from $131,000 in October to $135,000 in November. That’s still down about 12% compared to 2008, but it shows that the Phoenix housing market is on the mend.
Of course, that doesn’t mean much to Phoenix homeowners who are facing foreclosure. For homeowners in that position, there are two good alternatives to foreclosure: a loan modification, either through Making Home Affordable or directly through the mortgage lender; and a Phoenix short sale.
A short sale is a good alternative to foreclosure for a few reasons: one, it’s easier to recover a good credit score after a short sale than after a foreclosure. For Phoenix homeowners who couldn’t afford their mortgage payment even with a loan modification, and for those who need to move, a Phoenix short sale can be a great option. And I can help – I almost exclusively work with Phoenix homeowners and Scottsdale homeowners doing short sales.
The first step in preparing for a Phoenix short sale is to gather together your financial information, write a letter explaining the hardship that has caused you to need to sell your Phoenix home short (that hardship might be a job relocation, job loss, or illness). Then we’ll get together a list your home, much as we would if you were doing a regular sale.
For more details, check out my most recent blog post on the foreclosure situation in the Phoenix real estate market and the good alternatives to Phoenix foreclosure that are available.
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