Phoenix AZ Experience 534% Rise in Foreclosures; Worst Yet to Come

25 July 2008

Author: admin Posted under Foreclosure Filings

Residents and local officials of Phoenix have really something to worry about. According to the latest data, there was a 534 percent increase in the number of foreclosure filings for the first half of the current year, bringing the total to 12,573. Sadly, experts are saying that half of this number will end up as foreclosures.

Towns which were hit hardest by the foreclosure crisis included those located in the southwest and west sides. Home prices in these areas have declined steadily over the last year, creating more problems for the other residents. Neighborhoods where homes were inexpensive only had a handful of foreclosures. On the other hand, NE Phoenix foreclosures also increased, mainly due to the slowing economy in addition to the effects of the subprime mess.

Local officials are no longer surprised with the turn of events, even forecasting that the worst of the housing crisis is yet to come. Government agencies and private groups have been working hard to help these distressed homeowners and somehow curb the rising foreclosure rate. Homeowners who are having trouble with their mortgage payments are encouraged to seek assistance in order to avoid foreclosure.

Across the state, the foreclosure rate has increased by 126.76 percent from last year, with one filing for every 201 homes. As of June, Arizona has the third highest foreclosures rate in the country, just behind Nevada and California. Nationwide, the foreclosure rate has leaped by 53.28 percent compared to 2007, with millions more foreclosure filings still expected by the end of the year.

Last Wednesday, a foreclosure rescue bill was passed by the House in an effort to finally find a long-term solution to the foreclosure crisis. Once it is approved, the said bill will provide distressed homeowners with a way to exchange their mortgages with government-backed loans, which have friendlier payment terms.