Foreclosures hit record in March for Phoenix area

by Catherine Reagor The Arizona Republic Apr. 7, 2010 12:00 AM

The number of Phoenix-area homes foreclosed on by lenders hit a new record in March.

There were 5,556 foreclosures in metropolitan Phoenix last month, a 30 percent jump from February, according to the Information Market, a property-records research firm.

March's increase comes after foreclosures fell in the Valley during the first two months of the year. The previous record for Valley foreclosures was 5,316 in July.

The increase may be the result of more failed loan modifications and more people walking away from mortgages on which they now owe much more than the home's current value.

Pre-foreclosures, which are notices filed by lenders after homeowners
fall at least three months behind on their mortgage payments, also climbed in March. The increase in pre-foreclosures could mean another jump in foreclosures in April

Foreclosures hit record in March for Phoenix area