Fewer Phoenix Foreclosures, But They Still Pack a Wallop

Although foreclosure activity in Phoenix is down slightly from 43 percent to 38 percent of the total market month-over-month, it is still a tough market for potential sellers.

Dawn Yazzie-Howard just went under contract with her 3-bedroom, 2-bath home in Mesa, Ariz., after eight months on the market. The news is bittersweet. She had to part with it as a short sale because she and her husband Nevell owe more on it than it is worth.

At one point the 1,899-square-footer was on the market for $164,900. It was listed for $130,900 when an offer came in. Yazzie-Howard bought the home for $272,000 in August 2006.

But it gets worse.