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Foreclosures
on rise in Arizona, Valley By
The Business Journal
Home
foreclosures are on the rise in
Arizona
as the housing market continues to cool down and interest
rates rise.
Foreclosures.com, a Northern California-based real estate
investment advisory firm, reported that more than 8,000
properties went into foreclosure in
Arizona
during the first six months of the year.
"Too
many people have been using their homes as ATM machines to
manage consumer debt. Now that interest rates are coming back
up to normal levels, the refinance window is closed to these
people and they are being squeezed by rising home
payments," said Alexis McGee, Foreclosures.com president.
"What we're seeing across the West is that most
foreclosures are occurring in major urban centers."
Although
the 8,321
Arizona
filings in the first two quarters of 2006 represent an
increase compared to the last six months of 2005, the number
is down by about 800 from the first six months of 2005.
Maricopa
County
accounted for the bulk of
foreclosure activity, 5,215 actions, for the first six months
of the year. However, the majority of defaults are being
settled prior to the actual foreclosure sale of the property,
according to Foreclosures.com figures. About 1,100
Arizona
properties initially in foreclosure came under new ownership
in the first half of 2006.
McGee
also said home prices will not crash like they did in the
early 1990s. "Back then, overbuilding by developers led
to excess inventory and what we call competitive liquidation
of unsold new homes," she said. "This time, the
inventory just isn't there."
Foreclosures.com
has been analyzing markets, providing foreclosure lists and
assisting investors since 1992. The company covers more than
946 counties across the
United States
.
For
more: www.foreclosures.com.
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