Arizona ranked number four in foreclosures across the USA. We had 13,345 foreclosure filings in October 2009. That is one foreclosure for every 200th home. The good news we are down 11% from September 2009 and down 24% from October 2008.

Vulnerable homeowners who are in adjustable rate home loans are experiencing a small reprieve right now with interest rates at low levels. However, when rates do rise again, and they will, then these same homeowners may begin to experience mortgage payments that are beyond their reach.

Studies also are showing that homeowners in areas such as Arizona where prices have dropped up to 76% in some areas from their high are literally walking away due to the enormous amount of negative equity in their home. Some economists note that only a principle reduction would keep these people in their homes, something that banks are not willing to do.

Until we see employment and housing prices stabilize I will not comfortable in saying we are at the bottom. Besides, you never know the true bottom until you look down!