Arizona Foreclosed Commercial Property for Sale Numbers Remain High

by on States

The number of foreclosed commercial property for sale and distressed residential properties remained at high levels in Arizona in the 2010 fourth quarter. The state had the second highest number of foreclosure starts during the period, although it did record a decline in the number of delinquent homeowners.

Phoenix foreclosures for sale and distressed homes in various markets of the state were some of the highest in the whole U.S. last quarter. In terms of foreclosure starts, Arizona was second nationwide, behind only Nevada. However, the number of mortgage loans in the state for which a foreclosure process has been started declined from 2.44% in last year's third quarter to 2.29% in the fourth quarter.

Analysts reported that foreclosed homes for sale in Arizona will continue to be high this year despite the state recording a decline in mortgage delinquency rate. For October-December 2010, the state's delinquency level declined to 9.53%, representing a 1.01% difference compared with the July-September 2010 quarter, based on data released by the Mortgage Bankers Association. The delinquency rate did not include mortgages that have already entered the foreclosure process.

Although Arizona was second in terms of number of residential foreclosures and foreclosed commercial property for sale, it was ranked outside the top ten in terms of delinquency rate for the 2010 fourth quarter. Arizona was ranked 12th, with Mississippi ranked top among the 50 U.S. states in terms of delinquency rate. Nationwide, mortgage delinquency rate declined to 8.93% last quarter from the third quarter rate of 9.39%.

In terms of percentage of mortgages under foreclosure, the national rate was at 4.63% in the 2010 fourth quarter, rising from the third quarter figure of 4.39%. Bank foreclosure listings are expected to hit their highest mark this year, mainly because of the five million troubled mortgages that will be moving through the system in 2011.

According to economists, the decline in delinquency rate was partly due to an improvement in the nation's job market. However, they did remind market followers that the number of residential foreclosures and foreclosed commercial property for sale have recorded another year-over-year increase during the fourth quarter. This trend, economists stated, will likely continue this year.