Phoenix AZ area HUD and bank foreclosures by city!!

Every home shown (links below) is either a BANK/HUD owned foreclosure or a privately-owned home (no short sales - so they all get quick answers!!), and has 3+ beds and 2+ baths

* These links ONLY show "single family (detached) homes" - NO condos or townhomes (except for HUDHomestore & FannieMae HomePath links)

* There are NO restrictions on property size, year built, or price in these searches - you'll see 'em all

(after clicking one of the links, a new window will open showing those homes - look for the "scroll bar" to scroll homes by price!!)

You will see property ADDRESSES, cross streets, photos, tax info, etc!!

NO email address or registration necessary to see ALL these deals - just click the links!!

Didn't see what you were looking for? You can do a custom search YOUR way ("Quick Search", above left)

How much house COULD you buy with the RENT you now pay??

$500/month rent = $100,000 house!
$1,000/month rent = $200,000 house!
$1,500/month rent = $300,000 house!
$2,000/month rent = $400,000 house!
Assumptions: Principal & Interest only ; 5% interest ; FHA 3.5% down ; 30 yr fixed ; M.I., taxes, insurance, HOA fees not included
Above figures approximate

HUD foreclosed homes can save you over $1,000!!!

A HUD home is a foreclosure owned by the U.S. Department of Housing & Urban Development
The previous owner had an FHA loan - which defaulted
HUD homes already have a home inspection completed (saving you $300+)!!
HUD homes come with a clean termite report (saving you $50-$500+)!!
HUD homes already have the appraisal done (if using an FHA loan - saving you $400+)!!
HUD homes come with 3% closing cost assistance!!
Short on Funds? HUD may be the BEST foreclosure "deal" for you!!
HUD homes are located throughout the Valley at VERY affordable prices!!
Many HUD homes are newer homes in great condition!!
Click the "HUD" links (above) to see them!! (HUDHomestore.com links are more accurate)
Call me when you're ready to qualify and go buy a HUD home!!

Problems with HUD home bidding process for FHA loan buyers

FHA buyers here in the Phoenix Arizona area are often finding themselves being out-bid when making offers on HUD foreclosure homes. Perhaps the main reason why this happens is because the initial list price of the home - which is the FHA "as-is" appraised value (the MAX that an FHA loan buyer can offer without paying more out-of-pocket) - is often LOWER than what the "comps" would indicate the home is worth (i.e. - the appraisal value that buyers using other loan methods - Conventional, VA, USDA, etc - will ultimately end up with). Because of this, buyers with non-FHA loans can usually easily out-bid FHA buyers without paying more out-of-pocket. This gives what some would consider an "unfair" advantage to these other, non-FHA, buyers.

Here are some possible ways to level the playing field, so-to-speak:

Be aware of the "comps" on the target property (esp when considering the next three options)
Cover (some or all) of your own closing costs
Overbid on the price (and be ready to pay difference out of pocket)
A combination of the two above (if combining both options can get you close to the "comps" value)
Use another type of financing (other than FHA) - i.e.: 5-20% down Conventional, VA, USDA (if applicable), cash, etc
Avoid HUD homes altogether - focus on bank or privately-owned homes
PIck a less-desirable property (smaller, older, further away, missing some items, minor damage, "dirtier", etc)
Just get "lucky" (I've seen it happen - but it's rare for a property in great condition in a desirable area)

Multiple-bid/offer ("bidding war") strategy & considerations

Find out how many offers are on the property, and how soon the seller will decide (if possible)
Has the seller already accepted another offer? Are they at the countering stage? Highest & Best?
Note property location, size, condition, age, 1 or 2 floors, lot size, upgrades, amenities, missing parts (if any), etc
Does the property back to a major street or some other "undesirable" factor?
Pull "comps" when considering an offer/bid; take the above factors into account
Be aware of the "appraisal contingency" in the contract, and use it to your advantage
Consider days-on-market and price drops (more important if you're the only offer/bid)
Understand that days-on-market alone may be a VERY deceptive factor

Buying a home that needs some repairs

If the repair amount is less than $5,500 (missing A/C, for example), you may be able to do an "escrow hold back"...
...if you are purchasing a HUD home, or using a "conventional" loan
You can NOT do an "escrow holdback" with using an FHA loan and buying a non-HUD home (i.e.: bank or privately owned, etc)
For HUD homes, you can also do an FHA 203k (streamlined or standard) for amounts over $5,500
The "escrow holdback" is simpler, faster, and cheaper - if it's an option in your particular situation

FHA (loan) "lender required" items

All HVAC heating and air conditioning equipment functional
All internal plumbing functional (toilets, sinks, faucets, shower heads, etc)
All smoke detectors present and functional
No exposed electrical wiring
No missing electrical socket covers
Range/stove must be in place
No obvious safety hazards
Pool equipment (if applicable) in place and functional
Termite checks (possibly, maybe not - definitely req'd for VA loans)
Other items (see article below)

Homes can be bought with FHA loans with these problems, but they'll need to be addressed via:

1) escrow hold backs (HUD homes only, or non-FHA loan buyers) - if repairs are under $5,500

2) getting the seller to do the repairs before close of escrow (may require some "negotiation")

3) FHA 203k "streamlined" (above $5,500 in repairs, but still "simple")

4) FHA 203k standard (extensive repairs needed - structural, etc)

Both options 3 & 4 above *may* require a pre-repair inspection/evaluation to be done by an FHA Inspector (buyer's expense)

Regardless of the option chosen, an FHA Inspector *may* also be required to perform a post-repair inspection (buyer's expense), whether repairs are done before or after close of escrow.

More info on possible FHA (loan) "lender required" repairs:

http://homebuying.about.com/od/financingadvice/qt/FHA-Repairs-to-get-an-fha-loan.htm

Need FREE Credit Repair?? Call me today!!

If you have NOT had a bankruptcy in the last 24 months...
If you have NOT had a foreclosure in the last 36 months...
If you have NOT had a "short sale" in the last 36 months...
If you have current collections that you ARE willing to pay off or catch up...
...then you MAY be able to qualify for a mortgage! Call me TODAY and let's find out!!

"First-time Home Buyer" considerations (down payment, closing costs, etc)

Definition - "first time home buyer": someone who has NOT owned a home in the last 3 years
(if they ever had one, they sold it AT LEAST 3 YEARS ago - that's 36 months)
If a buyer already has a home, he/she will be considered an "investment" or "second" home buyer
Investment & 2nd-home buyers will usually be required to put more money down (often 10% - maybe more)
Investor & 2nd-home buyers may have slightly higher interest rates than first-time buyers, all else being equal
Most banks and HUD may NOT pay 3% closing cost contributions for these buyers
Some sellers (banks/HUD) may require these buyers to wait severals days (after the property hits the market) before making offers
There may be other "concessions" that some sellers (banks/HUD) will not offer
Private sellers (i.e.: "real people", not banks/HUD) MAY be willing to offer concessions that banks won't

Various ways to "qualify" to purchase a home (incl down payment requirements)

FHA (Federal Housing Administration) loan - 3.5% down payment (CAN be gifted from family) - ($1,000 earnest deposit is part of this)
VA (Veterans Administration) loan - 0 down payment, military personnel ($1,000 earnest deposit still required)
USDA (U.S. Dept of Agriculture) loan - "0 down" like VA, but can be used by anyone (who qualifies) in certain "rural" cities (Buckeye, Maricopa, Queen Creek, San Tan Valley, Anthem, Apache Junction, western parts of Goodyear & Litchfield Park, Wittmann, etc)
Conventional loan - 3-20% down payment ($1,000 earnest deposit is part of this)
Cash - may require a larger down payment (up to 20%); you'll need to produce recent financial statement(s) - without account numbers - showing that you have the funds (i.e.:"proof of funds")

Down payment vs Closing costs

Down payment (discussed above) and closing costs are separate...
Earnest deposit ($1,000) is part of the down payment - and is pledged to get the property off the market
The balance (remainder) of the down payment is paid at closing (4-6 weeks later for a "loan" buyer; 7-10 days later for "cash" buyers)
Closing costs for a "loan" buyer of a typically-priced home (under $150,000) are about $4,000 (rule-of-thumb)
Note: closing costs for "cash" buyers are a LOT less
Banks often contribute up to 3% of the agreed-upon sales price to cover these buyer's closing costs; HUD also contributes up to 3%
Note: for homes OVER $133,000, a 3% seller (bank, HUD, etc) contribution is enough to cover the buyer's $4,000 closing costs
For a home UNDER $133,000, a 3% seller contribution is NOT ENOUGH to cover the entire $4,000 buyer's closing costs
Unless the seller (bank, HUD, etc) will offer MORE than 3% for a home UNDER $133,000, the BUYER will need to make up the difference at closing
This is IN ADDITION to whatever remaining amount of down payment the buyer will need to bring in
Also, the greater the competition for (more offers on) a given home, the LESS "concessions" the seller will offer
Generally, the LONGER the property has been on the market, the MORE the seller will offer to get it sold
I always make every effort possible to negotiate full closing costs for my buyers, but this cannot be guaranteed
Applying the $1,000 earnest deposits to cover the buyer's closing costs may make the DIFFERENCE for the buyer!!
It MAY be possible to re-structure the buyer's LOAN to help cover some of these, if necessary
Some of these funds may be GIFTED (given to the buyer from a family member) if the buyer is short on funds
fyi: "0 down" (VA / USDA) programs usually get cash back at closing for the buyer

Ready to qualify?? Call / email / text me your name & number and I'll have my loan officer contact you!!

The Home buying process (in a nutshell)

Get qualified - get me a copy of the loan Pre-Qualification Form (PQF) or proof of funds, showing that you CAN buy and for how much
Determine the search parameters (city/cities, # beds/baths, square footage, year built, max price, "wants", "needs", etc)
I'll set up a custom property search "web portal" for you to view/select all homes matching your specs
You select your favorite 5-10 (15 max) homes matching your specs
I'll screen the list for possible problems
We'll make an appointment to go view these homes (5 max per day, unless all homes are close together - then we can see 7 per day)
Yes, there are MANY homes out there - but once you've NARROWED the search by SEEING them, there will be FEW that'll REALLY match what you want
Select your 1st FAVORITE home (think about a 2nd & 3rd choice as well)
It's VERY LIKELY that your 1st choice will already have other offers on it, and MAY be SOLD already - so you'll need to be READY to MOVE quickly
If your 1st choice is still available, we'll write an offer on the property (HUD process slightly different)
Negotiate and (ideally) get the offer accepted (depending on the competition and other factors - HUD differences)
Escrow is opened with a title company, and the earnest deposit made out to that title company ($1,000 - cashier's check may be required)
WARNING!! DO NOT make any MAJOR financial purchases (furniture, cars, large credit card charges,etc) during this time!! Do that AFTER you close escrow!!
Property is inspected (NOT required, but STRONGLY recommended) - up to $300 for property inspection & $50 for termite check (VA loan only)
Note: property inspections are the buyer's responsibility and at the buyer's expense - AND properties are sold in "AS IS" condition (bank/HUD)
Banks usually turn on utilities (not gas) for inspections; HUD does not (but HUD does provides a basic free inspection not covering termites)
If termite activity is found AND IF the buyer is using a VA loan, property will need treating ($450) (about 20% of homes in my experience)
If the property has a septic tank ($500+ inspection) and/or well (& water quality), these may have to be checked (at buyer's expense)
Most properties in subdivisions do NOT have septic tanks, but public sewers instead (properties with 1+ acre lots often do have septic tanks)
If major problems are found, we can re-negotiate or back out and get the $1,000 earnest deposit back
Property is appraised ($400) (HUD homes already appraised - list price is appraised value if buyer is using an FHA loan)
Note: you may NOT need to pay the appraisal fee upfront (out of pocket); it MIGHT be paid weeks later at closing. Your loan officer can verify this.
If the property appraises for AT LEAST the agreed-upon sales price, then continue working with loan officer. If not, we can re-negotiate or back out and get $1,000 back
Buyer could also pay difference out of his/her own pocket - but this is rarely done (HUD "net" bidding process MAY make this necessary if competition is strong)
If buyer ultimately can NOT qualify (after a good faith & diligent effort), buyer can still back out and get $1,000 back
Buyer will not, of course, be re-imbursed for any inspection expenses (none of these were ever seller-required)
Just before signing final paperwork (4-6 weeks after escrow is opened), final walk through is done to verify no change in property condition
If the buyer is buying "all cash", the final signing is typically 7-10 days after escrow opening
Final paperwork is signed at the title company (closing amount necessary, if any, is brought to the final signing as a cashier's check made out to the title company)
Most Bank/HUD owned deals offer up to 3% of sales price toward closing costs (any remaining down payment or closing costs are due at this time)
Banks/HUD/sellers may not be willing to pay closing costs for "investors" (non-owner occupieds)
Bank/HUD deals usually will NOT pay HOA transfer fees and/or assessments (FYI)
Certain Buckeye subdivisions (i.e.: Sundance, West Park, etc) may have Community Facility District (CFD) "assessments" (approx $600/year) that buyers will also need to pay (through June 2022, for example) and should be aware of (see "Miscellaneous Links" below)
Your lender "funds" (releases the funds); deed is "recorded" in your name; escrow "closes" (could be up to 3 days after signing)
CONGRATULATIONS!! You get the keys (and can now change the locks)

Types of "deals" out there (for buyers)

"Bank-owned" vs "HUD-owned" vs "Short sales" vs "Investor flips" vs "Traditional" seller

Bank-owned

The property is owned by a bank (Bank of America, Wells Fargo, Chase, Fannie Mae, Freddie Mac, etc). The banks usually pay up to 3% of sales price to cover closing costs, and will usually turn on utilities (not gas) for inspections. Some banks may provide home warranties, and some properties have been re-painted, re-carpetted, and stove/ranges added (to make FHA financing - by far the most popular buyer qualification - easier). Banks are NOT required to do these things, however, and most DO NOT. The properties are usually sold in AS-IS condition - which is why having any such property inspected is important. It's EASY to find homes that are in VERY good condition, however, with minor issues. This is where the best value is to be found.

Bank responses usually take about a week - sometimes faster. Properties owned by either B of A or Wells Fargo often require the buyer to be "qualified" (have an LSR from) by a loan officer within their organization, regardless of which loan officer will actually be used. I can get that done, if necessary.

HUD-owned

The property is owned by the U.S. Department of Housing and Urban Development - a branch of the U.S. Government. A "HUD" home is a property whose previous owner had an FHA loan, which defaulted - and the government took the property back. The government offers up to 3% of sales price to cover closing costs, similar to the banks. A basic inspection and appraisal are already done (saving the buyer several hundred dollars). If a buyer is using an FHA loan, then the list price IS the "appraised value" of the property - and HUD provides the appraisal report freely to the successful bid winner.

Unlike most bank-owned deals, HUD does NOT pay to have utilities turned on for inspections. The buyer would need to do this him/herself (after getting permission from HUD to do so in writing - through their agent). In the event that the property needs repairs, HUD may have an option to add the necessary repair amounts onto the top of the loan in the form of a "repair escrow" - provided that the equity is there (agreed-upon sales price price + amount of repairs needs to be BELOW the list price). Like bank-owned above, HUD does NOT, however, do repairs themselves per se (property is sold in AS-IS condition).

Offers on HUD homes must be made by a HUD-registered broker/agent, such as myself, in the form of bids. Answers can (sometimes) come as quickly as the next day. There are some great HUD deals out there, and many are under $100,000 (as with bank-owned deals).

HUD homes may be a great option for buyers who are a bit short on funds. Since HUD properties already have a "basic" home inspection done (otherwise about $300), termite checks already done ($50-$500+ saved), and the appraisal (list price) is already done (saves about $400), a buyer could potentially save over $1,000 by purchasing a HUD foreclosure rather than another type of "deal".

The down side is that there will usually be FAR LESS in the way of buying options if the buyer considers only HUD homes. Typically, there will be far more bank-owned and/or privately-owned properties matching a given set of search specs (city, max price, minimum square footage, year built, etc) than there will be HUD properites with the same specs.

When I work with buyers, I normally include HUD foreclosures as well as bank and privately-owned properties in the search - unless the buyers tell me not to. If the buyers ultimately select a HUD owned property as their desired home, so much the better for them!

Short sales

This is a property in "pre-foreclosure" status. The seller is attempting to sell the property for less than he/she owes on it (for whatever it's worth at this time). The current lien holder(s) need to approve this, however, since they are the ones taking the loss. This approval process can take MONTHS (often over 6). Complications can arise even AFTER spending 6 months in the deal, especially if there are TWO lien holders to negotiate with (often the case).

These deals may or may not include coverage for closing costs. Utilities may be the buyer's responsibility to turn on. If the properties are occupied (many are vacant), the current occupants - who may be tenants - may not be too "cooperative" with regard to giving property access for viewing and/or inspections. Additionally, changing property values (depending on the time of year the offer is made and how long it takes the lien holders to respond) could cause the price to be negotiated UPWARD after months have passed (I've seen this happen). Alternatively, the property may NOT appraise for the agreed upon price months later, thus forcing an attempt to re-negotiate downward - which could cause another round of long waits or even total collapse in negotiations (and COULD even put your earnest money at risk)...

I do NOT get involved in situations like these at this time. If a buyer insists on pursuing short sales, I'll refer him/her to another agent. It's my personal opinion that there are way too many deals out there that are EASIER and less tricky for my clients, and it's a business decision on my part to avoid these.

"Pre-approved" short sales are ok - short sale deals where the bank(s) have approved the short sale at a given price. These should close in a "normal" time frame (30-45 days).

Investor flips

My definition of an "investor flip" is a situation where the current owner and seller (non-bank, private party or entity) has owned the property for LESS THAN 90 days. There are complications involving getting ultimate underwriter approval with these deals. Suffice to say, it's BEST to NOT write offers on these until AFTER the 90 day period has passed.

There are a LOT of these deals on the market now, because a lot of investors are buying them at auctions, fixing them up, and then putting them back onto the market for a quick profit. Loan underwriters (people who ultimately decide IF the buyer's loan for a particular property WILL or will NOT be approved) require documentation from these same sellers, however, to justify the price increase - and THAT'S where the problems arise.

This is also something that I choose NOT to get involved with if the buyer is buying with a "loan". If the buyer is an "all cash" type, then there will not be a problem (no "lender requirements" needed, obviously). I've seen complications (with "loan" buyers in this situation) that have almost "torpedoed" deals. My STRONG advice to "loan" buyers is to avoid consideration of these deals, or WAIT until the 91st day before making an offer.

This "90 day rule" does NOT apply to bank or HUD homes - and there are TONS of those out there to choose from.

Traditional seller

These are (my definition) privately owned (non-bank) homes where the seller HAS owned the property for OVER 90 days (i.e.: 91 or more). These are easy transactions with quick responses. Since the seller is a "real person" (not a bank), the seller may be willing to do repairs and possibly offer other concessions that banks usually do not. Most utilities are usually on, etc - but every deal is different, of course.

Other

Auctions, owner/seller-carry, rent-to-own, lease-options/purchases, etc.

Miscellaneous links

Buyer Advisory document (AZ Dept of Real Estate)
YourWayHomeAZ loan program (main page)
YourWayHomeAZ ("Press page" - program summary)
USDA ("rural", 0 DOWN) loan program & property locator
Check to see if a given home address qualifies for this loan here
Buckeye-Sundance CFD fees/info
Buckeye-West Park CFD fees/info
Mortgage Calculator (Bankrate.com)
Arizona Fissures info (AZ Geological Survey)
Septic tank search request (Maricopa.gov)
Request to locate septic tank for homes that have one (often homes with "acreage")
Phoenix Crime Statistics (by city)
Provided by AZCentral.com
Google Earth
Use Google Earth to view homes and subdivisions from the air
Arizona Landlord-Tenant Act
Be aware of your rights and responsibilities as either a tenant or a landlord in the state of Arizona.
Arizona Residential Lease Agreement (sample)
KEYTLaw.com
Awesome resource for real estate related legal issues and education in Arizona
KEYTLaw's Free Email Newsletters
TONS of interesting real estate related topics (browse them for yourself) sent directly to your email
FHA-approved CONDO list (buying a CONDO? look here first!)
Enter the zip code; select "all" for status; choose "both" for Search Type; click SEND button to see results
Annual Credit Report (FREE) website
Do you know what's in your credit report? You SHOULD. Find out here FREE (once a year no charge)
Credit Repair - do it yourself!!
Lexington Law's credit repair site (great resource!!)
Credit Repair Info (Federal Trade Commission's site)
Learn how to "repair" your credit on your own for FREE here
Eight credit-repair tips after bankruptcy
Great article on how to start rebuilding your credit after BK
Capital One (Secured Mastercard)
Great for rebuilding credit - apply online
HSBC/Orchard Bank (Secured Mastercard)
Another great card for rebuilding credit - apply online
Arizona Central Credit Union (Secured VISA Card)
Another good one - find the nearest branch and apply within
Water fountains (tiered & other types) for homes
Short Sale seller's addendum (AZ Assoc of Realtors)
Short Sale info for sellers
Pebbletec POOL finishes
HOA regulations & considerations
Maricopa City (Pinal County) water rate increase agreement (Aug 2010)
AZ Residential Pool Safety Notice
NEVER leave children unattended around pools!
Mortgage Fraud - five common methods
#4 is VERY common these days in Phoenix AZ - that's why lenders require a 90 day "seasoning"
More on Mortgage Fraud
Other things to watch out for
Office of Pest Management
Termite report search by address
Seaton & Associates, Inc (FHA 203K Compliance Inspector)
Kathy Seaton, FHA Inspector & FHA "escrow hold-back" contractors

HOA fee discussion (not all apply to every HOA)

Transfer fee (one-time; unexpected community repairs, common area maintenance, approved improvements)
Disclosure fee (one-time)
Working Capital fee (one-time)
Assessments (infrastructure - ongoing)
Monthly/Quarterly/Semi-annual/Annual payments
2 months upfront reserve (sometimes)
Community Enhancement fee?
Reserve fund fee?
Capital preservation fee?
Other?

Vendor List

(DISCLAIMER: I do not personally guarantee the services of any vendor on this list)
Harry Dietz, WIN Home Inspections, 602-909-7600
Sean, Hummingbird Home Inspections, 602-312-6266
Pillar 2 Post, Home Inspections, 623-825-6160
Ajax Septic Pumping, 602-278-0075
AAA Locks (locksmith, rekeying), 602-697-4691
Action Termite, 623-780-3132
American Home Shield (home warranty), 800-776-4663
Old Republic (home warranty), 800-282-7131 x1346
Bob Eastman (well & water testing/certification), 623-826-7048
Maricopa county septic permit, 602-506-0952
Molly Maids (home clean up), 623-340-4586
Mr Jeff (locksmith, rekeying), 623-826-0260
Farmer's Insurance (Emily), 623-581-8200
State Farm Insurance (Dennis Blair), 480-860-1111
Christian Brothers (A/C, Heating, Plumbing), 602-222-3535
All Bright (carpet cleaners, etc), 623-853-0619
AAA Landlord (tenant background checks), 480-668-5953
Kathy Seaton (FHA Consultant/Inspector, FHA 203k projects), 602-841-3166

Utility companies

APS, 602-371-7171
SRP, 602-236-8888
(Arizona) American Water, 800-383-0834
Southwest Gas, 602-851-1999
Surprise, City of, 623-222-7000
Glendale, City of (water & trash), 623-930-3190
Peoria, City of (water & trash), 623-773-7160
Goodyear, City of (water & trash), 623-932-3015
Parks & Sons, trash (Surprise, etc), 623-972-6120
US Postal Service (local post office, mail box location & new key), 800-275-8777
Cox Communications (cable, high-speed internet), 623-594-1132

Committed to Education: my real estate related certifications

Graduate, Realtor Institute (GRI)
Accredited Buyer Representative (ABR)
Certified Short Sale Negotiator (CSSN)
e-PRO (use of technology in real estate transactions)

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