One reader from Arizona had this comment. "My sister (roommate) told me the other day that our complex in Ahwatukee (off of Ray Road) is going to reduce rents. There are more apartments in our complex available now. This is a reversal of the notice we got 2 weeks ago which said our rents are going up."

"Perhaps in the Chandler/Ahwatukee/Tempe area the glut of speculator houses that are now being rented out is having an effect on existing apartments. It may be too early to tell. But it’s good news. A friend of ours moved from her two bedroom apartment to a 3 bedroom house (she is renting) about 3 miles from us. She pays just about $100 more per month."

The Arizona Republic. "More Valley homeowners are in danger of losing their homes than at any point in more than a year. Last month, 837 homeowners got notices that they were at least three months behind on their mortgage payments. Those notices mean their mortgage firms are getting ready to evict them and auction off their houses on the courthouse steps."

"This is just the beginning. Tom Ruff of Phoenix-based data firm Information Market, which tracks the foreclosures, said that by year-end trustee sales could be climbing by 100 a month. In June, there were 776."

"Why the increase? Thousands of people used the non-traditional mortgages last year to afford a house in the Valley, where home prices jumped nearly 50 percent. On many adjustable-rate mortgages, the monthly payment on a $250,000 loan could easily climb by more than $100 every six months."

"Arizona incomes aren't climbing at the same rate, and Valley housing appreciation is pretty flat. So unless homeowners win the lottery or take a second job, they don't have a big chance of catching up on their mortgage payments."

"Troubled metro Phoenix homeowners had been able to quickly sell, usually for a profit, until recently. The number of homes for sale across the Valley has tripled in the past year."

"At the same time that trustee notices are climbing, canceled trustee sales, properties that are sold or mortgages that are caught up to stop the foreclosure auction, fell to their lowest level since 2001. Tim Rocho, CEO of Scottsdale-based Real Estate Fortune, said many of the homeowners in trouble are too highly leveraged to sell or refinance and get out from under their debt."