Podcast: Foreclosure processing issues increase uncertainty in Phoenix market

In his latest Realty Studies Report, Jay Butler, associate professor of real estate at the W. P. Carey School, finds that 46 percent of the home transactions recorded in Phoenix in September were foreclosures — the highest percentage level of foreclosure activity since March. If you take into consideration the previously-foreclosed properties that changed hands in September, foreclosure-related activity actually represented 67 percent of the market. Several large banks, including Bank of America, JPMorgan Chase & Co. and Wells Fargo & Co. have temporarily halted foreclosures due to questions about documentation. The problem first came to light in the 23 states where foreclosure is a judicial, and therefore public, process. Knowledge asked Butler what the implications are for Arizona, which is one of 27 states where foreclosure is not a judicial process.

In his latest Realty Studies Report, Jay Butler, associate professor of real estate at the W. P. Carey School, finds that 46 percent of the home transactions recorded in Phoenix in September were foreclosures — the highest percentage level of foreclosure activity since March.

If you take into consideration the previously-foreclosed properties that changed hands in September, foreclosure-related activity actually represented 67 percent of the market. Several large banks, including Bank of America, JPMorgan Chase & Co. and Wells Fargo & Co. have temporarily halted foreclosures due to questions about documentation.

The problem first came to light in the 23 states where foreclosure is a judicial, and therefore public, process. Knowledge asked Butler what the implications are for Arizona, which is one of 27 states where foreclosure is not a judicial process.