Rising foreclosures in the Phoenix metropolitan area represent a "disturbing" trend that may largely be a result of predatory lending, according to Foreclosures.com, a Sacramento, Calif.-based investment advisory firm specializing in distressed property.Alexis McGee, president of Foreclosures.com, said there were 1,165 new notices of trustee sales in Arizona's Maricopa County in October, and 1,254 in November. "This rise in foreclosure activity is a disturbing trend, because the Phoenix area economy is in full recovery and housing sales are still strong," Ms. McGee said. "Twenty percent of home sales are to incoming retirees who often bring cash and stable incomes with them." Ms. McGee said she suspects predatory lending as a "major" contributing factor, noting that Arizona has not enacted legislation aimed at curbing abusive lending practices. "These lenders put people into loans with outrageous fees and terms the borrowers cannot possibly meet," Ms. McGee said. "Then they just wait for the inevitable default and foreclose." The company can be found online at http://www.foreclosures.com.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry