Just because they print it does it make it true?

Congratulations Miami, the 2011 NBA champions! – NOT.  Here it is in print from a Florida newspaper.  I guess they never got the memo or checked the score board.  Just because it gets printed or makes its way onto the internet, does that make it true?  That’s the same way I feel about Phoenix area shadow inventory.  Some of the confusion lies in the definition of shadow inventory.  Obviously,  shadow inventory includes properties that have gone back to the lender but are not on the market.  Some also consider homes that have received a Notice of Trustee Sale with a scheduled auction date.  Some add to those numbers loans that are seriously delinquent which is 90+ days behind.  As you can see, the definition will affect the level of shadow inventory cited by the various experts. There’s also the issue that real estate is local and national commentaries cannot be relevant to individual markets?  Many have stated that shadow inventory is out of control and will contribute to a foreclosure Tsunami.  Now let’s get the facts for the Phoenix area.

Fuel for the foreclosure fire – pending foreclosures and Phoenix shadow inventory levels

Understanding shadow inventory levels is important because it is a leading indicator of the number of homes that will eventually become foreclosure or lender owned properties which sell at discounts and keep home values from rising.   When a  lender deems that a home owner falls sufficiently delinquent, a notice of trustee sale is issued advising the homeowner that the property will be sold at a trustee sale auction in 90 days.  The graph to the right shows the number of outstanding notice of trustee sale notices with a future auction date for Maricopa county since 2007.  A lower number is indicates that fewer properties will go to auction and become lender owned foreclosures.   A historical perspective helps identify trends and understand the future supply of lender owned foreclosures.   The 2011 trend line is represented by the pink line and shows a favorable trend downwards.

Components of Phoenix Shadow Inventory

The definition of shadow inventory is will vary and depends on which components are included.   I like the definition used by The Cromford Report shown by the graph to the left.  The bottom red portion are active foreclosure or REO listings being marketed in the MLS.  At the beginning of November 2010, the active lender owned foreclosures were in excess of 6,000.   Nine months later at the beginning of August 2011, the number has been cut by more than half, to approx. 2,800 properties.    The next component, the Unlisted REO’s, (in blue) are those that have reverted to the bank at auction and are in the process of being prepared to go on the market.  Interestingly, this component remains fairly constant between 7,000 – 8,000 properties.  The fact that Arizona is a non-judicial foreclosure state helps keep this level lowered than if Arizona was judicial foreclosure state.   The purple portion represents pending foreclosure or properties with a notice of trustee sale.  This component has decreased from 35,000 to 21,000, or 40%.   These properties may be sold as short sales, achieve a loan modification,  purchased at auction or eventually revert back to the beneficiary or lender.   A diminishing level of pending foreclosures will result in fewer foreclosured /lender-owned/REO  properties later on.  The Pending Foreclosures graph above shows a very positive trend for this category since its peak at the end of 2009.

The other component that would be interesting is the number of homes that have stopped paying their mortgage but have not received a notice of trustee sale.

Now you have it, the break down of shadow inventory, what it is and the current trends.  If you are waiting for the next wave of foreclosures, it may be a very long time unless there are some fundamental changes.  And remember just because you see it something in print doesn’t mean it is necessarily so.  Get the real data and understand the trends.

If you would like more information on any homes for sale feel free to call or e-mail or  receive updated listings for your favorite community.

Waterfront Bank -Owned Homes

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Who really loses on a foreclosure?

Keys to a successful Gilbert or Chandler short sale listing

 

$300,000 :: 7838 S 141ST Avenue, Goodyear AZ, 85338

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4 beds, 3 baths
Home size: 3,019 sq ft
Lot Size: 217,800 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Single Family
MLS Number: 5691178
Community: None
Tract: None
Status: Active


Charming home with beautiful panoramic mountain views. Situated on 5 acres of natural desert habitation, its close to hiking trails at Estrella Mountain Park, PIR, lake and golf course. And to top it all off, it's zoned horse property. The home is over 3,000 sq ft and just waiting for you to make it your own. Use your imagination to do some basic updating, add to it or build around it. In addition to other large rooms, it features a massive size Master bedroom with a hugh walk-in closet, wood or gas burning fireplace, saltillo tile thru-out, 3 car garage and city light views.

Listed with Keller Williams Realty Professional Partners


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$274,975 :: 3313 N REYNOLDS --, Mesa AZ, 85215

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4 beds, 3 baths
Home size: 2,026 sq ft
Lot Size: 9,147 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Single Family
MLS Number: 5691158
Community: SUMMIT LOT 1-275 TR A,B
Tract: SUMMIT LOT 1-275 TR A,B
Status: Active


Ready to move in a spacious home with over 2,000 SF, great lender owned property!! 4 bedrooms with 3 baths with formal living & dining room and a family room that can be utilized as a den or office. Nice kitchen with stainless appliances. Spacious living & dining room. Large backyard with a private pool and a two car garage. Hurry this one will not last. Property is sold in AS IS conditions with no SPDS or clue report. Buyer to verify all major facts and measurements.

Listed with DA FA Realty & Investments


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$69,800 :: 4155 W MILLER Road, Eloy AZ, 85131

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3 beds, 1.75 baths
Home size: 1,120 sq ft
Lot Size: 6,969 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Mobile/Manufactured
MLS Number: 5691125
Community: MIDWAY CITY AMD
Tract: MIDWAY CITY AMD
Status: Active


Charmingly restored to better than new! Featuring new interior and exterior paint, new flooring throughout, new HVAC, new appliances and so much more! Check docs tab for all repairs. Location allows for easy access to I-10 and within walking distance of Toltec Elementary School. Truly move in ready and you can't beat this price!

Listed with RE/MAX Casa Grande


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$159,900 :: 25648 W DUNLAP Road, Buckeye AZ, 85326

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3 beds, 2 baths
Home size: 1,598 sq ft
Lot Size: 5,227 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Single Family
MLS Number: 5691103
Community: WESTPARK PARCEL 15S
Tract: WESTPARK PARCEL 15S
Status: Active


Great potential with this 3 bedroom, 2 bathroom home in Westpark. Everything is here, just needs a little TLC to make it great! Great investment opportunity for anyone looking for a nice home in a clean community. Three bedroom, two bath, den, covered patio... it's all here!

Listed with Keller Williams Realty Professional Partners


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$258,000 :: 9030 E DIAMOND Drive, Sun Lakes AZ, 85248

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2 beds, 2 baths
Home size: 2,028 sq ft
Lot Size: 8,712 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Single Family
MLS Number: 5691048
Community: SUN LAKES UNIT THIRTY-SIX
Tract: SUN LAKES UNIT THIRTY-SIX
Status: Active


Adorable 2 bedroom 2 bath main home plus 1 bedroom 1 bath private guest home/casita. Main house features a spacious great room floor plan with formal dining, bright roomy kitchen with center island and separate eating area. Enjoy all the Resort style amenities in the active adult community of Sun Lakes Iron Oaks including golfing, tennis, restaurants, club house, pool and so much more. Buyer to verify any and all items that are of material issue. **HOA Fees, Amenities, etc. are estimates only, Buyer to verify prior to Close of Escrow. **

Listed with Legion Realty


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$74,900 :: 1654 S 77TH Way, Mesa AZ, 85208

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2 beds, 2 baths
Home size: 1,400 sq ft
Lot Size: 7,840 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Mobile/Manufactured
MLS Number: 5691007
Community: DESERT SANDS GOLF AND COU
Tract: DESERT SANDS GOLF AND COU
Status: Active


Lovely area of Desert Sands Golf Community!

Listed with Realty ONE Group


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$289,999 :: 20021 W PASADENA Avenue, Litchfield Park AZ, 85340

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3 beds, 2 baths
Home size: 1,987 sq ft
Lot Size: 37,461 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Single Family
MLS Number: 5691032
Community: BEAUTIFUL ARIZONA ESTATES SUB
Tract: BEAUTIFUL ARIZONA ESTATES SUB
Status: Active


Wow what a gorgeous Custom property. This 3bed/2bath home sits on a near ACRE Lot with many upgrades. House boasts: Granite Counters, Upgraded Cabinetry, Tile Flooring, Recessed Lighting, Pantry, Island, Breakfast Bar, Eat In Kitchen, Greatroom, Split Floorplan, Upgraded Fixtures, Dual Pane Windows, Large Master Retreat with Walk In Closet, Double Sinks, Separate Tub and Shower, Large Covered Patio and Much More. Horse Property. Great location with convenient access to Shopping, Dining and Entertainment. Loop 303 and I-10 nearby for quick commute anywhere in the Valley. Wonderful School District. Skyline Regional Park and White Tank Mountain Regional Park just around the corner. Not your typical Bank Owned Property. Do not miss out on this fantastic opportunity.

Listed with Revelation Real Estate


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$69,000 :: 10845 W MICHAEL Drive, Sun City AZ, 85373

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2 beds, 2 baths
Home size: 924 sq ft
Lot Size: 6,098 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Single Family
MLS Number: 5690997
Community: LAKE PLEASANT MOBILE HOME ESTA
Tract: LAKE PLEASANT MOBILE HOME ESTA
Status: Active


Nice manufactured home in the heart of sun city. Property features 2 bedrooms, 2 baths and 2 carports. Thehome is in need of a little TLC but is priced to sell.

Listed with Real Home Services & Solutions


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$116,600 :: 2845 W SOLANO Drive, Phoenix AZ, 85017

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3 beds, 1 bath
Home size: 1,080 sq ft
Lot Size: 6,969 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Single Family
MLS Number: 5690951
Community: CAVALIER PARKWAY
Tract: CAVALIER PARKWAY
Status: Active


Quaint single story home in a centrally located neighborhood. Property features 3 bedrooms, 1 bath and avery functional layout. The home is in need of some TLC/updating but could be a real gem with a littlework. Priced to sell.

Listed with Real Home Services & Solutions


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


$244,900 :: 12056 W SALTER Drive, Sun City AZ, 85373

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5 beds, 2.5 baths
Home size: 2,672 sq ft
Lot Size: 5,662 sq ft
Added: 11/22/17, Last Updated: 11/22/17
Property Type: Single Family
MLS Number: 5690974
Community: Rio Sierra
Tract: Rio Sierra
Status: Active


Located in the Cross River community in Sun City, this 5 bedroom, 2.5 bath home features a den/office, formal living room & family room, island and pantry in the kitchen, breakfast area, upstairs master bedroom with vaulted ceiling & walk-in closet, desirable N/S exposure, low maintenance front yard, RV gate, covered patio, close proximity to biking & walking paths and more! Take a look!

Listed with A.Z. & Associates Real Estate Group


Brought to you by Gordon Baker, Remax Alliance Group. Call me today at 480-326-8571, or visit my website at www.myhomeinaz.com/!


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