Nationally, foreclosures jumped 46 percent in March compared to a year earlier and were up 17 percent compared to February with more than 340,000 properties affected nationwide, according to foreclosure marketer RealtyTrac and as republished in the Realtor Magazine's Daily Real Estate News. This does not mean more homeowners are in trouble, although that may be the case. What it does mean is that now that the government’s plan is clear, the moratoriums are over and it’s time to get down to clearing out what has to be done to get the housing market back on track in the long-term.

Here I am to say, “I told you so.” Last November, when major banks and government mortgage insurers announced they would set a holiday freeze on foreclosures, I said The Lump in the Foreclosure Pileup Will Hit Next Spring. That freeze was extended, but not it's over. The sobering graph included in that November blog post may be ameliorated by some of the refinance opportunities that have become available, thanks to creative work by our new administration. (See the posts in this blog’s mortgage channel about legitimate mortgage modification programs, including refinancing for investment property loans.) Still, those who cannot afford the homes they are in will suffer foreclosure.

There is still a long road ahead.  Nearly 804,000 homes received at least one foreclosure-related notice from January through March, up from about 650,000 in the same time period a year earlier, RealtyTrac says. The end of the moratorium of course will cause an increase in the availability of bank-owned properties over the next few months. This means it's a good time to buy! In Flagstaff, these properties mostly end up in the multiple-listing-service, competing with other owners who want to sell and who may be stunned at the price impact on our market caused by the REO-property competition.

Nevada, Arizona and California had the nation’s highest foreclosure rate. Other states in the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon. One in every 159 homes nationwide was at some stage of foreclosure, according to RealtyTrac. For more information of foreclosures and other distressed properties in the Flagstaff homes market, read my monthly real estate report for March 2009.

To buy a foreclosure in Flagstaff, contact Team Heitland at RE/MAX Peak Properties. To successful sell your home in this volatile market, contact us, too!