Looking For Canadian Second Homes During The Recession

Oct. 1, 2011 - PRLog -- In Arizona during the past few years and continuing, about 50 percent of all real estate sales include homes that private owners lost to their lenders due to unpaid mortgage bills. Everyone knows the U.S. economy hasn't been too positive lately. We can see how this circumstance has influenced real estate values and values in the future. However, Canadians are turning the negative situation into a positive when buying their second homes.

What's The Deal With Arizona?

Let's first understand the situation in Arizona before discussing whether it's a good idea to buy Canadian second homes in the State or not. Here is what happens when homeowners stop making payments to their lenders: the lenders will send a notice regarding the unpaid bills, and if homeowners go on defaulting, their homes will either be sold at a trustee sale or the home will be returned to the lender.

Nearly all homes are bought by out of state and out of country buyers. Usually they are revamped and either put up for rent or sale for monetary gain. But what occurs to those homes that don't obtain a minimum bid? Lenders have to make the choice on what to do with them. Generally, the homes are aggressively advertised until sold. They're generally sold as they are with no remodeling. If the homes don't sell fast the prices often keep going down until they do.

Should Canadian Winter Visitors Buy Now?

Statistics show that property costs have gone down by about 14 percent - mortgage rates are in an all-time low. Winter visitors and investors, particularly from Canada; have been taking advantage of the Foreclosure and Short Sale Inventory in Arizona. On the other hand, it's not a widely known fact that Canadians are also now searching for luxury properties in the State. This is probably because more and more luxury home builders are beginning to realize the demands of Canadian buyers. The transactions are reaching millions of dollars, which show that Canada's top preference when it comes to the U.S. real estate market is Arizona. Thus, not only will you have a good chance of finding a value home, but you'll also now have a greater opportunity to find a luxury home that's relatively more affordable.

Better Financial Options

For Canadians, the loan process is almost the same as those for U.S. citizens. Canadian buyers must fill up a mortgage application, and are asked to provide bank statements, letter of employment, and a copy of a valid Canadian passport along with the appropriate entry visa stamp. Once all the date has been confirmed the lender will then be able to establish the most appropriate program. However the number of banks that will perform on a foreign national loan is very limited. Your Canadian buyer real estate specialist will have that connection. The idea situation and one that gives you the best negotiating power to come prepared to pay cash and that normally takes you making arrangements with your Canadian Bank
It would be best to find a realtor that specializes in the State or area where you wish your second home to be. So for instance, you can start discussing your options with a Phoenix realtor regarding Phoenix real estate or Scottsdale Realtor for Scottsdale real estate.

Maureen Karpinski
Find your Phoenix Arizona Property at http://www.cactuscountryproperty.com/city/phoenix.htm
Posted by Cactus Country Arizona Homes & Properties http://www.cactuscountryproperty.com

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