Home Foreclosure in Tucson

Many Tucson Homeowners are Facing Foreclosure

At the peak of people in Tucson filing for bankruptcy, more than 37,000 bankruptcy were filed in Tucson and throughout Arizona.  One of the biggest causes for the bankruptcy filings was the fact that many people in Arizona were facing foreclosure and a number of them chose filing for bankruptcy as their method of dealing with their home foreclosure.

Of course there are many reasons why people may choose to file for bankruptcy and every person has their own story and reasons.  However, with the current state of the economy in Tucson, Arizona,  one of the main reasons people consider bankruptcy is because they have been unable to make their house payments because of: divorce, loss of employment, or an unexpected illness or personal situation.

There are many reasons why a mortgage may fall into foreclosure and it isn’t always because a person can’t afford to make the payments.  Sometimes the value of the property has dropped below the amount owed on the mortgage.  (referred to as “negative equity” or being “underwater.”)  Faced with negative equity, many homeowners in Tucson, (some of who could possibly even be your neighbors) come to the logical conclusion that they will be better off financially in the long run if they choose to walk away from their mortgage and let their house go through foreclosure.  The decision to either let a property go into foreclosure is often also influenced by other financial considerations including loss a job, reduction in income or the need to move to a different city or state.

There are options available to people who are struggling with a house payment or facing foreclosure.  One option that many people facing foreclosure choose is to file for bankruptcy.  Filing for bankruptcy protection eliminates both the mortgage on the house as well as all of their unsecured debt.  Since both a foreclosure and a bankruptcy filing are detrimental to a persons credit score, a lot of the time people choose to just get a complete “fresh start” by filing for bankruptcy protection.

Tucson is not the only area of the United States being hit with an increase of people who can afford their payments letting their house go in foreclosure. It is estimated that over 1 million homeowners who can afford to pay their home loans will walk away from their mortgages this year alone.

Though it is a national epidemic, there are certain states that it is more of an issue.  In Arizona, more than 50% of all houses are underwater.  In Nevada, it’s even worse: 65% of houses have negative equity. Though most severe in Arizona, California, Florida, Michigan and Nevada, negative equity is a nationwide problem.  Across the country, more than 16 million homeowners are now underwater, so, for everyone who seems to think that things can’t get any worse and that the housing market is on its way back–beware!  Many leading economists predict that the housing crash in Arizona and throughout the United States will continue to worsen, perhaps for many years, before it ever stabilizes.

If you are considering letting a piece of your property go into foreclosure (be it a commercial property or a residential property) in Tucson, Arizona, it will be a great idea to find out the fair market value of your home.  Without having to incur the cost of an appraisal, there are other ways to get a good idea as to what your property is currently worth.  Knowing the value of your property will give you a better idea as to how much negative equity you have and will greatly assist you in determining if you should let the property go into foreclosure or continue to struggle with the monthly payments.

One local source of information that you may want to tap is to check with a local realtor (such as the ones listed below), for comparison values of similar commercial or residential properties in your neighborhood.

For Residential Property Comparisons in Tucson:

David Guthrie – Williams Centre

5460 E Broadway Ste 350
Tucson, AZ 85711
(520) 745-4545

The Vallee Gold Team

1890 East River Road
Tucson, AZ 85718
(520) 544-5555

For Commercial Property Comparison Values in Tucson:

Volk Company

2730 E Broadway Boulevard 200
Tucson, AZ 85716-5341
(520) 326-3200

The opinion in Tucson is changing.  Once considered taboo, choosing to default on a debt has become increasingly more common and more acceptable, particularly as Tucson, Arizona, and all of America become increasingly aware that banks and lenders are not taking steps to help families and property owners keep their homes.  Anyone who has attempted to apply for a mortgage modification or conduct a short sale knows how difficult it is to deal with most loan holders.  There are options available to you.  Consult a Tucson bankruptcy lawyer or debt relief expert and plan a strategy as to how to deal with your property mortgage.