Patrick Schutte, Prescott Arizona REO Specialist

The Mortgage Bankers Assocation reported yesterday that Arizona residential deliquencies rose to 9.22 percent of homes in Arizona and foreclosures were started on an additional 2.52 percent of AZ mortgages bringing the total to 5.56 per cent of all homes in foreclosure.

"It is difficult to overstate the severe impact home-price declines have had on mortgage performance," said Jay Brinkmann, the MBA's chief economist, in a statement."

Brinkmann also said the MBA suspected the foreclosure numbers had been kept low by foreclosure-moratorium policies imposed by various states, lenders, Fannie Mae and Freddie Mac.

"Now that the guidelines of the administration's loan-modification programs are known, combined with the large number of vacant homes with past-due mortgages, the pace of foreclosures has stepped up considerably," he said.

Assuming the jobless rate doesn't peak until mid-2010, foreclosures and delinquencies will remain elevated until then, Brinkmann predicted.

You can see an example of this with the amount of notices of trustees sales that are scheduled in the next 3 months in the Prescott Valley Market. See map below. Yellow homes are slated for foreclosure in the next 90 days or so, and the home in green are already REOs. In the 86314 Zip Code there are 191 homes scheduled for auction and 150 already bank owned.

Prescott Valley AZ REO and Pending Trustee Sales

If you are on the market for an investment of a second home in Prescott Valley, there are bargains to be had out there and more to come. To search the current inventory of bank-owned homes and short sales in the Prescott area, click here.

Just like the previous week, twenty new foreclosed or short sale homes came on the market last week, about one in every 5 homes being listed in the Prescott Arizona Area MLS system. 5/20 are short sale listings (see yellow highlight).

Is there a flood of foreclosures ready to hit the market?

See: Banks to unleash a phantom inventory of foreclosures say some

To get more information about any of these listings or any others in Prescott, Prescott Valley, Chino Valley or Dewey-Humboldt areas, feel free to contact me, or you can search by MLS number, address, or lots of other ways in our Search Prescott MLS section.

Want to see what the latest sales figures are for the Prescott Az area foreclosure market?

See: Prescott area REO and short sale homes sold 5-1-09 thru 5-15-09

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Many lenders, real estate agents, and home builders applauded when HUD said it would let banks and local governments offer short-term "bridge loans" to cover the down payment for first-time buyers eligible for the tax credit. The loans would have been available to applicants for federally insured mortgages such as Federal Housing Administration loans.

See: Home builders see positive signs in market

Now, Federal officials have done a 180 saying that the money cannot be used as a down payment.

See: Tax credit ineligible for down payment

To many, including myself, this money should be used to for other things than the buyer's down payment. Without any skin in the game by homebuyers, we could end up where we are today...buyers need to have equity in their homes to make prudent decisions about their homes.

Sellers of homes in the Prescott, Prescott Valley, Chino Valley, and Dewey-Humboldt need every bit of help they can get and welcome Federal help. However, throwing good money after bad is in noone's best interest.

To find deals of REO, bank owned, foreclosed, short sale, and distressed homes in the Prescott AZ area:

Twenty new foreclosed or short sale homes came on the market last week, about one in every 4 homes being listed in the Prescott Arizona Area MLS system. 6/20 are short sale listings (see yellow highlight).

Want to see what the latest sales figures are for the Prescott Az area forelcosure market?

See: Prescott area REO and short sale homes sold 5-1-09 thru 5-15-09

To get more information about any of these listings or any others in Prescott, Prescott Valley, Chino Valley or Dewey-Humboldt areas, feel free to contact me, or you can search by MLS number, address, or lots of other ways in our Search Prescott MLS section.

You can get this report sent to you via email. Sign up here.

Note: Change to weekly report format. I will track foreclosures and short sales separately and do the analysis once a month vs. every week.

Get your Fico Scores/Reports

Activity in the distressed home market in the Prescott AZ area remains moderate with 18 homes closing in the first 15 days of May. This compares to 42 homes sold by traditional resales during the same period.

The average price per square foot for REO and short sales was $98 and the average time to sell was 115 days compared to $138 per square foot and 239 days on market for tradional resales. You can see that the REO and short sales market in Prescott and Prescott Valley continues to move quicker and at a much lower average price.

Short sales about 20% of sales: of the 19 homes sold, 4 were short sales (highlighted in yellow).

Over 1/4 of the homes sold for more than asking price (see green highlight), sold fairly quickly, and got multiple offers to get there. This tells me that multiple buyers are getting in the game. Before you enter the fray, please read: Top 10 tips to win the REO multiple offer game.

See chart here.

For more information on any of these listings, please contact me.

Search for Prescott area REO/Foreclosed and Short Sale Listings

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Related Posts:

• 40% of condos sold in March 2009 in Prescott area were REOs
• Prescott area foreclosed/REO homes sold in last 15 days > 03-11-09
• Prescott area REO and short sale homes sold in last 15 days > 03-26-09
• Prescott area REO and short sale homes sold 4-15-09 to 4-30-09
• Prescott area REO and short sale homes sold 4-1-09 - 4-15-09