Our prior home, which we sold two years ago, was foreclosed on over the summer and is now listed as a bank sale. We were fully paid on the sale of the home and were not damaged by the foreclosure.
A few notes for those who are not aware of severity of the Phoenix housing crash.
November 2005 Appraisal $480,000. The home was appraised for tax purposes, so there was no pressure for the appraiser to make a predetermined sale price. Local comparable homes were selling quickly for higher amounts.
December 2006 sold for $397,500. By this time, houses were not selling and we had to aggressively price the home for it to sell. We kept lowering the price on the home until it was priced less than smaller homes with fewer features.
Summer 2008 friends told us about the foreclosure notices at our prior home.
September 2008 house listed on MLS for $299,900. That is $180,100 (38%) off the market high and $97,600 (25%) off the last sale price.
Our prior home is in a nice, established neighborhood relatively close to central Phoenix. The homes in less established, more distant locations are even more distressed.