A report from the Arizona Republic. "The number of Valley residents who lost their home to foreclosure spiked more than tenfold in the past year as more and more homeowners fell behind on their mortgages. The problem may soon get worse. Mortgage delinquencies hit a four-year high last month."

"'Our economy isn't bad, but foreclosures will continue to rise,' said Jay Butler, director of realty studies at Arizona State University Polytechnic. 'The fallout from the subprime market is just beginning.'"

"Last month, 553 Valley families lost their homes, according to the Information Market. At the same time, 1,705 homeowners got notices from their lenders that they were at least three months behind on their mortgage."

"In March 2006, 782 homeowners were delinquent, but only 40 houses were taken back by lenders and sold at a foreclosure or trustee sale."

"'Many homeowners who bought at the peak and are now struggling may just end up walking away from their houses,' said Margie O'Campo de Castillo of Arizona Dream Realty. 'People who bought new homes on the Valley's fringes a few years ago are particularly having trouble selling for what they owe now.'"

"Heather Ferguson thought she was getting a low-rate mortgage when she bought her Fountain Hills home in 2005. 'I wasn't a real estate expert, but I had decent credit and could afford the payments on a 6.5 percent loan,' she said."

"But after waiting for her loan broker for four hours at the title agency, she ended up signing for a subprime loan that started with an 8.5 percent interest rate that has now climbed to almost 12 percent. Her payment went from $980 to $1,680."

"People behind on their mortgages are often dealing with other financial or personal problems and are in denial, experts say."

"'They think the Valley's housing market a few years ago was normal,' said Joann Hauger of the non-profit group Community Housing Resources of the Arizona. 'Struggling homeowners shouldn't think those price run-ups are going to return and save them.'"

The East Valley Tribune from Arizona. "Some 5,703 Maricopa County properties entered a stage of foreclosure in the last three months of 2006, a 49 percent jump from the same period the year before, according to RealtyTrac."

"Inflated home values and the use of creative financing, such as interest-only loans, have left many owners unable to make payments or sell, Intero division manager Patti Crawford said. Refinancing frequently isn’t an option because the borrower owes more on the home than it’s worth."

"Homeowners who bought in the $250,000 to $350,000 range or in outlying areas, such as Queen Creek and Maricopa, seem to be the hardest hit, Crawford said."

"Coldwell Banker started new divisions at the beginning of the year, one for preforeclosures and another for foreclosures. 'We are starting to get more and more requests from lenders,' department head Connie Swenson said."

"Crawford expects foreclosures to continue to climb. 'I don’t think we’re even near the beginning of it,' she said. 'People’s rates are going to start adjusting. Their payments are going to go up.'"

CNBC reports from Nevada. "Luxury condos will continue to hit the market in Las Vegas as speculators attempt to flip properties. In fact, there's more than 11,000 units under construction that have been pre-sold, largely to investors, which means they’re likely to come back onto the market."

"There are another 12,000 units planned and being marketed now, according to Brian Gordon, principal of Applied Analysis in Las Vegas."

"While several projects have been cancelled in recent years, 'there is still a lot of inventory to burn through,' says John M. Restrepo, a real estate consultant in Las Vegas. 'Don’t be afraid to make a lower offer. There is a lot of product out there.'"

"The impact of foreclosures has on pricing remains to be seen, though Nevada has been registering the highest rates in the nation. In February, foreclosures rose 77% from the year prior with one foreclosure for every 278 households, or three times the national average, according to RealtyTrac."

"Should buyers take the plunge now? 'If they’re looking for housing options short-term and don’t expect to be in the market long-term, it might be worth waiting,' Gordon said."

The Review Journal frm Nevada. "Tammy Anziano rented a unit at Savannah Apartments last week to a woman who was looking at buying a home, but got caught in the squeeze of tighter mortgage lending requirements."

"'She said she found a house and put a substantial amount down on the house, but they came back and said they needed an extra $35,000,' said Anziano, business manager at (a) 400-unit luxury apartment complex. 'This is a woman who has excellent credit.'"

"'What's interesting is that Nevada has the highest foreclosure rate in single-family homes. You would think that the vacancy rates for apartments would be going down,' said Carl Sims, apartment broker in Las Vegas. 'In reality, it has increased from 4 percent to 6 percent to 7 percent in the last year.'"

"Sims said higher vacancy rates are partly due to new development and 'shadow rentals,' or condominium conversions that have been purchased by investors and put back into the rental pool."

"Sims said he checks with Chicago Title and finds 80 to 100 foreclosure filings coming in daily. With all of the investor homes on the market, renters can find a three-bedroom home for $1,275 a month, about the same as a three-bedroom apartment, Sims said."

"Spence Ballif of CB Richard Ellis said he's also seeing a lot of foreclosures. 'You've got all the investors who bought here,' he said. 'We've probably got 6,000 or 7,000 homes out there that are being leased.'"

The Gazette Journal from Nevada. "The chief economist for Stewart Title Guaranty Co. advised Reno-area home sellers Friday to get real with pricing."

"'You have to sober up the seller and educate the buyer,' (said) Ted C. Jones. 'Your seller is like road kill, and your buyer is waiting for that road kill to rot.'"

"'Your issue is surplus inventory. What’s not moved is a huge inventory of existing homes. What scares the tar out of me is one-third of it is vacant,' he said."