Fulton Homes Cautions Buyers: Foreclosures Present Peril to Homeowners

Oct 22, 2010, 09:07 ET from Fulton Homes

TEMPE, Ariz., Oct. 22 /PRNewswire/ -- Fulton Homes (www.fultonhomes.com) has a message for potential foreclosure home buyers: "Just don't do it.” CEO Douglas Fulton is passionate about the subject and builds new homes with full warranties from the $120s.

"We are learning about more pitfalls every day," Fulton said. "While the deals seem enticing, buyers have to deal with an arduous approval process, lack of inspection and the frustrating waiting game."

Fulton Homes was the first homebuilder to highlight the downside of foreclosures in an informational advertising campaign executed through billboards, TV and radio messaging.

According to RealtyTrac™, one of the major research and analytic firms focusing on foreclosures, Arizona had the second highest foreclosure rate for the fifth consecutive quarter – one in 55 homes is in the foreclose process. This places the state second only to Nevada, which tops the dubious list with one in every 29 homes in the foreclosure process.

In the midst of this "second foreclosure wave," predicted by many housing industry analysts, Bank of America had instituted a national freeze on foreclosures. The bank is looking at whether mortgage lenders are even looking at foreclosure documents before approving actions. On October 18, B of A said it would start up foreclosures again in 23 states, but will continue its freeze in 27 states, including Arizona, as it reviews its procedures. These recent activities have lured investors to the Valley of the Sun looking to scoop up inexpensive foreclosure homes, along with first-time homebuyers, folks looking for second-homes and retirees.

Fulton Homes was founded in 1975 and grew to be one of the top homebuilders and family owned businesses in Arizona. During the past several years, in the face of one of the worst housing markets in US history, Fulton Homes soldiered on in a market devastated by foreclosures and short sales. Fulton Homes offers many homes in the $118,800 - $236,800 range. The homebuilder also offers an online tool, ForeclosureCostCalculator.com, that gives buyers the true cost of a foreclosure home. It can be customized to fit the parameters of any foreclosed property, and analyze such factors as exterior paint, cabinets, and termites.

Founded in 1975, Fulton Homes is one of Arizona's largest privately owned homebuilders. Headquartered at 9140 S. Kyrene Rd. in Tempe, Fulton Homes builds affordable, high-quality single-family homes. To learn more about Fulton Homes, visit www.fultonhomes.com.

SOURCE Fulton Homes