Question about voluntary foreclosure (Phoenix, Chandler: section 8, rentals, mortgage)

[Master Shake]

For anyone considering the foreclosure process, keep in mind that this can negatively affect your other, existing credit also. If you read any of your credit card rules closely, you might find that they can and will raise the interest rates upwards of 20% (some as high as 29%) simply because you defaulted on any account. This means that some, if not all, of your Visa/Master Cards could very quickly go to over 20% -- even if you perfect records with them and/or have so called "special rates for life".

Just something to think about...

[MotleyCrew]

Originally Posted by altus2006

Where are you located, twiggy? Your situation is one that Ponderosa and others had warned about earlier this year. It is so hard (if not impossible) to find out which areas to avoid.

I feel bad for all of you that bought in areas that have turned out to be gang infested and with values headed down.

altus2006

I don't agree with this statement. We had no problem on our own hunting down the good areas. We consulted with a very good realtor and found a wonderful place to live. I do remember when artvandalay was coming to AZ and I believe he had some of the same advice that many newcomers have, that being look around, drive some more, look around. With that said, you realy do take a bit of a gamble in just about any "affordable" area and I am sorry to hear that yours took a dive. Best of luck in future digs.

[Master Shake]

Originally Posted by artvandelay

The HOA is a profit center. They care about dues and fines. I realize they need as much occupancy as possible to get their moolah, but they are ALWAYS more concerned with weeds and rocks (revenue streams) than with loitering, stray shopping carts, and drug activity in the park (non-revenue issues). I asked them to consider lights, regular or motion-sensor, to install in the park to curb the drug stuff, graffiti, etc. They dismissed it and didn't even propose a vote, saying there are signs posted that it is closed after dark.

I've called the police on a couple occasions for B&E suspicion and 4-wheelers driven in the streets, excessive late-night party noise. Unless there's imminent physical danger, police have bigger issues. 90% of my neighbors are indifferent to everything because they are big contributors to the problem. I know of only 3 other neighbors who even care about salvaging the neighborhood.

It's frustrating that there is so much indifference to the declining neighborhood. I can be the squeaky wheel, but squeaky wheels need some support.

By the way, I hate HOA's.

You are very correct here, unfortunately. Many HOA's are owned/run by much larger payment processing corporations that couldn't care less about your particular situation. They are designed to collect dues -- period. Yes, there is a local community board, but the amount of participation varies greatly from one community to another. Sometimes, they will send out fines to homeowners who violate the rules, but many HOA's don't even enforce the rules any more, or have just 1 or 2 people to cover 10's of communities spread across the valley. I've even heard that in some cases, they will only target the homeowners that they believe they can get a response from. Sending out violation letters to unoccupied investor homes where the house is in foreclosure or waiting to be sold at auction almost never results in anything but wasted effort.

As for the police, they are usually only concerned with immediate danger related issues. If it is not a life-threatening situation, the police will try to push you to resolve the issues yourself. They are also very short staffed, and no longer have the resources to assist with issues such as "bad neighborhoods."

[twiggy]

Originally Posted by MotleyCrew

I don't agree with this statement. We had no problem on our own hunting down the good areas. We consulted with a very good realtor and found a wonderful place to live. I do remember when artvandalay was coming to AZ and I believe he had some of the same advice that many newcomers have, that being look around, drive some more, look around. With that said, you realy do take a bit of a gamble in just about any "affordable" area and I am sorry to hear that yours took a dive. Best of luck in future digs.

Thanks, my parents had lived here and it had always been a good area. I think the down swing in housing and the economy is going to take it's toll on a lot more areas. You never know which area is going to have a lot of foreclosures and which one will keep the owners. It's easier in the urban sprawl for a neighborhood to turn sour in a short time as well. People move out not in. Until it's a landlocked situation this won't start to turn around. I'm still going to hold out for one more year and see if it gets better. I hate to turn my back on it and run. But at the end of another year, I will panic, and hopefully just sell it.

[Master Shake]

Originally Posted by MotleyCrew

I don't agree with this statement. We had no problem on our own hunting down the good areas. We consulted with a very good realtor and found a wonderful place to live. I do remember when artvandalay was coming to AZ and I believe he had some of the same advice that many newcomers have, that being look around, drive some more, look around. With that said, you realy do take a bit of a gamble in just about any "affordable" area and I am sorry to hear that yours took a dive. Best of luck in future digs.

Man, you are so right with this statement! If only the people who create all of the "Laveen/Tolleson is so great -- I've never had any problems -- why do all of the long time residents discourage moving to these areas?" could see this thread...

[altus2006]

Originally Posted by Master Shake

Man, you are so right with this statement! If only the people who create all of the "Laveen/Tolleson is so great -- I've never had any problems -- why do all of the long time residents discourage moving to these areas?" could see this thread...

Every time I see a new post about moving to Queen Creek I wonder if the poster ever reads the jillions of posts about the area. It seems like too many people come to the forum with preconceived ideas that they want people to verify and don't pay a lot of attention to opposing views.

This ole gal is paying attention to the old timers! So far it appears that if a person buys in a development almost finished there is a better chance of not going down the drain with house values. There is no way I would buy in an area just starting because there is no way to tell if the builder will be around in a few months.

Lots of vacancies and foreclosures in an area are other warning signs for me to keep looking.

altus2006

[twiggy]

Originally Posted by altus2006

Every time I see a new post about moving to Queen Creek I wonder if the poster ever reads the jillions of posts about the area. It seems like too many people come to the forum with preconceived ideas that they want people to verify and don't pay a lot of attention to opposing views.

This ole gal is paying attention to the old timers! So far it appears that if a person buys in a development almost finished there is a better chance of not going down the drain with house values. There is no way I would buy in an area just starting because there is no way to tell if the builder will be around in a few months.

Lots of vacancies and foreclosures in an area are other warning signs for me to keep looking.

altus2006

What if they happen after you've been there and it's been great for a couple of years. Then what? What if you watched it happen instead of just made a bad mistake buying into one that already exist? They aren't made that way, most start out good, they go bad. And faster now than they did before the bad economy. It's just a crap shoot to me. There isn't any way to predict the future. I knew homes would level, but go down in value by 200,000 dollars? Not a clue! I might be the wiser now, but everyone had to learn this lesson first. The whole country is learning it now.

[Ponderosa]

I think the same rules apply here as anywhere. It's all about location. If homes in the area you are looking at are significantly discounted from other areas, that area is going to go down the tubes pretty quickly - good times or bad. In housing, as in most things, you get what you pay for. If I were buying a home in a 120-160K area, I would plan on being out in five years tops and getting a lot lower rate of appreciation than I would find in a community of higher priced homes. That's just the way it is. As for the foreclosure problems in better areas, don't fret about it. This will all pass fairly soon and things will trend back to normal patterns.

[altus2006]

Originally Posted by twiggy

What's strange is that I live in a Chandler suburb by the mall. I never would have imagined it to get this way. The homes look nice, it's in the Kyrene school district. But, renters have a way of not really staying very long and not caring very much. I was a renter once, and I cared but for some reasons I new I could leave easily if I needed too. As a owner I feel like I need to watch the neighborhood more, and take care of my house a lot more, watch my kids and how they respect the neighborhood. I can't believe the foreclosures going on right now, a lot! People use to have to be able to afford to pay 400,000 for a house here, now they can get a bank owned for 200,000. Maybe thats why? I'm not wealthy by any means but I work hard and respect others and make sure my kids do as well!! There seems to be a lot more teenagers around that don't live here, it's strange but there parents are dropping them off in my neighborhood from other parts of town and telling the school they live in the district. These kids wander around my street waiting to be picked up, and they don't get picked up until 5:30, 6:00pm! Who knows why? Maybe people are more depressed now and just don't care anymore. ??????

One of my concerns is that I am reading where investors are coming back into the market now that the house prices are dropping. Captain Bill posted once about someone is his office that works selling bundles to investors. I can't think of much things worse to happen in the market than investors buying a lot of houses at almost junk prices, which devalues all homes in the area.

One of the reasons the real estate downturn happened is because of the investors that are renting out their houses and then walking away from their obligations when they can't make the payment. The fact that this is starting again is worrisome. I would like to find out what financing is available to the investors and which builders are participating.

It really is necessary to drive the areas one is interested in and follow the housing market to see what is happening with prices and rentals.

Good luck to you.

altus2006

[twiggy]

Originally Posted by Ponderosa

I think the same rules apply here as anywhere. It's all about location. If homes in the area you are looking at are significantly discounted from other areas, that area is going to go down the tubes pretty quickly - good times or bad. In housing, as in most things, you get what you pay for. If I were buying a home in a 120-160K area, I would plan on being out in five years tops and getting a lot lower rate of appreciation than I would find in a community of higher priced homes. That's just the way it is. As for the foreclosure problems in better areas, don't fret about it. This will all pass fairly soon and things will trend back to normal patterns.

When I bought my house it was a 400,000 dollar area. 2 years later it's a 200,000 and something area. This theory didn't hold water for me. I use to use it too. Things are different now, it's not that easy anymore. This is a very unstable climate. Let's see how good you are at foreseeing the future ? I have been wonder where I should go with affordable housing that will be a more stable housing climate. It can be anywhere in the U.S. weather is not a factor, although I hate tornados. But will deal with anything to have a better economic climate and more stability than I've found in Phoenix. Any advice Pond? I'm serious, I give up on my mental forecasting skills for now. Anybody else? I don't care if it snows all year long. Has anyone heard of a place not being hit as hard as we are?