Big Profits in Arizona REOs

Foreclosures are on the rise in Arizona putting more REOs on the market at incredible prices. In June 2007 an average of more than 107 home owners a day received notices that their homes are scheduled to be sold at foreclosure auction. Its terrible news for the home owners who are facing foreclosure, but great news for investors looking to find a deal.

Investors and property wholesalers who purchase homes at foreclosure auction are beginning to re-evaluate their purchases. Several valley wholesalers are holding onto inventory too long and having to reduce prices to get the properties sold. Often times the opening bid amount is too high for investors and wholesalers to even bid on or purchase the homes that go to auction.

What happens when no one bids on a property at foreclosure auction? The bank gets stuck holding the bag. Lenders are being forced to take possession of these properties in their Real Estate Owned (REO) portfolios. They then turn around and the list the properties for sale with local real estate agents to try to get them sold, often for pennies on the dollar.

There are currently more than 3,750 properties in Maricopa County, AZ listed for sale as lender owned (REO). More than half of those are priced under $250,000, and more than one quarter are priced below $200,000. Many of them are priced well below current market values in an effort to facilitate quick sales.