If home ownership is the American Dream, then foreclosure must be the American Nightmare! Foreclosure rates are continuing to rise throughout Arizona leaving many home owners out on the street and lenders taking a loss on houses they can't sell.

Currently there are more than 10,000 home and property owners in Arizona who are facing the threat of foreclosure. Nearly 7,000 of them are within Maricopa County . In fact, during the month of June 2007, an average of more than 107 home owners in Maricopa County received notice that their home is scheduled to be sold at foreclosure auction each day. And those numbers are continuing to rise.

Reasons why homeowners may be facing foreclosure can vary widely from loss of a job to an unexpected illness. A big challenge, though, lies in adjusting mortgage rates. Many home owners took out adjustable rate or interest only mortgages three to five years ago at incredibly low interest rates, borrowing as much as they could. Those mortgages are now adjusting to higher interest rates, increasing the monthly mortgage payments. Combine that with increased gas prices and cost of living, and these home owners are now struggling to make ends meet.

There are also many properties that were purchased sight unseen by out of state investors (or at least those who fancied themselves investors) who were not familiar with the market. Many of those homes have been vacant for long periods of time. If they do have tenants renting the property, the amount of rent often does not cover the owner’s mortgage payment. This creates a negative cash flow situation in which the owner ends up paying additional out of pocket each month. Having a lease agreement with negative cash flow can also make it difficult to resell the property, because most smart investors are not interested in getting into a negative cash flow position.

When creditors are calling daily looking for money, and it appears that there are no other options available, many home owners become stressed out, frustrated and angry. They get burned out trying to find solutions and make ends meet. It suddenly becomes easy for them to throw their hands up in despair saying “I’m done. Let them take my home. I just don’t want to deal with it anymore anyway!" The problem with giving up is that foreclosure affects more than just the home. Many people faced with foreclosure end up losing their jobs and families as well.

The sad thing is that many of these homeowners who are facing foreclosure do not understand the effects foreclosure can have on their lives, and have no idea what options are available to help them avoid foreclosure. What is great is that there area plenty of options available to help them stop foreclosure and get back on track financially. These options can range anywhere from calling the lender to request restructuring of payments to selling the home and downsizing to something more affordable.