Arizona is on the verge of recording a third consecutive year of record-breaking number of foreclosures as the year 2010 is set to end with more properties ending in bank and FHA foreclosure listings than 2009. During the January-November 2010 period, the state recorded a total of 65,911 foreclosures, representing a 12% surge when compared with the whole 2009.

Lenders are expected to repossess thousands more in December which will bring the number to a considerable total compared with year-ago levels. According to housing industry analysts, 2011 will be much the same for the region, with foreclosure homes in Mesa, AZ and in the rest of the state expected to hit record levels. Analysts stated that the unemployment rate of Arizona is part of the reason for the bleak 2011 forecast.

It also does not help that values of properties in the state have decreased by as much as 50% compared with peak levels recorded in 2007. In addition, lending standards have become tighter all over the U.S., creating more problems for homeowners seeking to refinance their mortgages. Although Arizona foreclosures are projected to maintain 2010 levels, analysts agree that the government's efforts to convince banks to modify mortgages will help keep foreclosure numbers from getting worse in 2011.

Housing market observers have added that government-supported efforts to keep foreclosures at bay and a slowdown in lender processing will somehow keep foreclosure rates much the same as the previous year. Statewide data for 2010 showed that bank and FHA foreclosure listings are worst in Phoenix, with the metro area accounting for almost two-thirds of the whole state's foreclosure total.

The problem started in 2007 when subprime mortgage loans froze and a big number of lenders experienced business failures. This led to listings of foreclosure homes expanding in the whole state, particularly in Phoenix, where prices of dwellings declined to $140,000 during the 2010 third quarter from the 2007 average price of $260,000.

For 2011, the main concern of housing observers is the supply of foreclosed homes that have yet to be included in bank and FHA foreclosure listings. The shadow inventory, analysts have stated, presents a risk to home pricing appreciation.

Original Post: Bank and FHA Foreclosure Listings Set to Break Record in 2011 in Arizona on Foreclosure-Support.com.