Phoenix, Arizona Trustee Sales and the Impact of Bank of America Stopping Foreclosures
November 14, 2010. The Phoenix area is experiencing a low quantity of trustee sales right now. Scheduled sales quantity is less than half of the normal activity seen earlier in the year. This is due mostly to the impact of Bank of America halting foreclosures nationwide in recent months. It is believed that proper legal procedures were not followed. Other lenders with improper procedures will also follow this trend. There was news they would begin again foreclosures in the states that foreclose judicially. Arizona is a trust deed state and the majority of foreclosures are handled by trustee sale, not judicially. This will impact Arizona as the majority of lenders and trustees are canceling sales as opposed to postponing sales as they had in recent months. This slow down will delay the real estate market recovery.
To conquer the legal challenges that will be later to, the lenders will have to restart the trustee sale course of action. the time of action requires the lender to record a cancellation of the existing trustee sale, prepare new documents, record a new notice of trustee sale, and wait Arizona’s required 90 days until the scheduled sale. The low quantity of trustee sales will likely continue for at the minimum the next 120 days, possibly longer depending on what else is required for the lenders to be in compliance with federal and state laws.
Sales quantity will continue to be low as it has been for the past few months. This is accurate and in contrast to some local auction companies falsely reporting spikes in scheduled sales activity. They reported a high quantity sales day on Friday November 12, 2010. The past day was a Federal holiday without sales. They were looking at two days worth of sales quantity, not one. This shows how desperate some companies may be. With limited foreclosure sales in Phoenix, there are limited homes in the MLS inventory for resale by lenders that foreclose and investors that buy and resell to future homeowners. Look to the future for a possible flood of foreclosures to hit the market when lenders finally get caught up.
Phoenix, Arizona is the capital and largest city in the state of Arizona. The metropolitan Phoenix area is home to approximately 1.5 million residents due to the warm climate year-round and exceptional quality of life obtainable. Phoenix is a very desirable vacation and second home destination.