FORECLOSURES IN ABQ

Question was asked about where we find the foreclosures. There are two answers. First, there are foreclosures all over and in all price brackets. People who have lost jobs are having great difficulty including those who have been at upper management or executive levels. We see foreclosures in High Desert and NE Heights in the upper price levels reflecting this situation. We see foreclosures by people who have been in their own businesses and with the recession their business volume has forced them to close their businesses and foreclose. The foreclosures related to the decrease in income due to the recession occur all over ABQ. These homeowners try to sell their homes but they have lost equity and cannot sell except as a short sale. With no income they cannot renegotiate with the bank and the only way they can sell as a short sale is to stop making payments. Then after they stop payments and if they can't sell, the home is foreclosed. Many times they can't sell as a short sale because the banks take months to review an offer and the Buyer gets tired of waiting. So it's not that we don't find buyers for their homes, it's that the banks make it almost impossible to complete the transaction. Do I sound bitter???

The second answer is that there are more foreclosures in areas where people bought on loans that they probably should not have gotten involved in. For example, in the SW developments and some parts of Rio Rancho and Ventana Ranch, first time homebuyers bought loans with no money down or at 103% of the value. When the value dropped 20-25% in the last two years, these people are upside down. Also, investors who bought several homes are selling or foreclosing because they can't lease the homes and realize they will never sell to make a profit so they "dump" them.

Hope that answers the question. We, by the way, have had really good success getting short sales to close and if it goes to foreclosure, we have investors who will buy redemption rights. We're trying to stay current in our skills so we can serve our clients.