How Many Arizonans Are Affected by Pre-Foreclosure — and What It Means for Homeowners & Investor

At Empowered Home Solutions, we believe knowledge equals power — and when it comes to distressed homeowners and creative solutions, the more you understand, the better you can act. In Arizona, many homeowners find themselves heading into pre-foreclosure — which means they’re at risk of losing their home unless action is taken. Here’s a breakdown of where things stand, why this is happening, and how we can help.

What is “Pre-Foreclosure”?

“Pre-foreclosure” refers to the stage when a homeowner has fallen behind (or is at risk) on their mortgage payments or otherwise faces imminent foreclosure filings, but the property has not yet been repossessed or sold by the lender. It’s a crucial window of opportunity for solutions like loan modifications, subject-to deals, deed-in-lieu, & short-sales.

The Numbers: Arizona’s Current State of Affairs

Here are some key data points for the state and for the Phoenix metro area:

• According to a recent study: home-mortgage delinquencies (which often precede foreclosure) are rising in Arizona — while the state isn’t among the top 10 highest-delinquency states, its delinquency rate increased by about +0.12% over the past year. (ABC15 Arizona in Phoenix (KNXV))

  
  

• In April 2025, Safeguard Properties reported that Arizona had a foreclosure filing rate of one in every 4,655 housing units. (Safeguard Properties)

  
  

• Also in 2025, another dataset by ATTOM Data Solutions listed Arizona at one in every 4,264 housing units having a foreclosure filing (737 filings out of ~3,142,443 units) for the period cited. (ATTOM)

  
  

• A bit earlier, a broader indicator: one in every 4,683 homes in the state was in some stage of the foreclosure process (which includes pre-foreclosure) — representing a 27% increase year-over-year. (AZPM)

  
  

• In the metro Phoenix region, there are 2,658 off-market pre-foreclosure listings according to one data provider. (Batch Leads)

  
  

• In the city of Phoenix alone, there were 701 active listings in some stage of foreclosure (including pre-foreclosure) at the time of reporting. (Foreclosure.com)

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What Do These Numbers Mean in Human Terms?

Let’s translate to real-life impact:

• If Arizona has ~3.14 million housing units (from the ATTOM data) and one in ~4,264 units had a filing, that means roughly ~735 homes per period (as indicated) entered the filing process.

  
  

• Because “some stage of foreclosure” (pre-foreclosure + filings + auction + bank repossessions) covered one in ~4,683 homes, that suggests thousands of Arizona homeowners are navigating distress each year.

  
  

• In metro Phoenix alone, having 2,600+ off-market pre-foreclosure listings suggests a significant opportunity (and a significant need) for help in just one metro area.

  
  

• These are not just numbers — each statistic represents a family, a homeowner, a situation where life changed: job loss, unexpected medical bills, divorce, adjustable rate hikes, rising property taxes or insurance.

  
  

Why the Uptick? Key Drivers Behind Arizona’s Distress

Several factors are contributing to this trend:

• Rising housing costs: Homeowners locked into lower interest-rates are facing higher insurance premiums, higher property taxes, and higher maintenance costs. These push the housing cost burden higher.

  
  

• Economic pressures: Delinquencies are the first step toward pre-foreclosure and foreclosure. Arizona’s delinquency rates are creeping upward. (ABC15 Arizona in Phoenix (KNXV))

  
  

• Market shifts: Some regions in Arizona (Phoenix metro, Pinal, Mohave counties) are seeing sharper increases in proceedings. (AZPM)

  
  

• Supply-side constraints & equity gaps: Even homeowners who may have equity can be squeezed by cash-flow issues or unexpected costs; distressed properties abound.

  
  

How we at Empowered Home Solutions Step in

Given this context, here’s how your business (and your audience) can benefit — but more importantly how you can help homeowners:

1. For homeowners in pre-foreclosure:

• We offer strategic coaching on options like subject-to mortgages, deed-in-lieu, short sales, lease-backs — giving distressed homeowners alternatives to waiting for a foreclosure auction.

• We serve as a partner who moves quickly, ethically, and compassionately — recognizing that behind each property is a person or family.

• We provide transparent, jargon-free guidance: “Here’s what you owe, here’s what we can do, here’s your timeline, here’s what happens if you wait.”

  
  

2. For real-estate investors / agents reading this blog:

• This segment represents an expanding pipeline of opportunities: from off-market pre-foreclosure leads (2,600+ in metro Phoenix, for example) to homeowners seeking creative solutions.

• Networking with distressed-property professionals (attorneys, counselors, title firms) gives you credibility and early entry into deals.

• Position yourself as the solution: your brand can say, “When life happens, you have options.” That resonates emotionally and establishes trust.

  
  

3. For your brand and content strategy:

• Use blog posts like this to educate your audience — homeowners, investors, and referral partners.

• Integrate calls-to-action: “If you’re in Arizona and you’re feeling the pressure of missing payments, contact us for a free consultation.”

• Share real-life case-studies (with identity anonymized) of how Empowered Home Solutions stepped in and enabled a homeowner to walk away with dignity, or enabled an investor to acquire a turnaround property responsibly.

• Tie in emotional / lifestyle angles: “Your home is not just an asset — it’s the backdrop to your life.” Connect to your lifestyle-blog voice (you’re a stay-at-home mom + blogger) — talk to the human element.

Timing & Opportunity

Because pre-foreclosure is a stage, not an endpoint, timing matters:

• The earlier a homeowner seeks help, the more options are available. Once a property is bank-owned the complexity increases.

• For investors & agents, diving in when the homeowner is still engaged (pre-auction) often means less competition and better outcomes.

  
  

Trends to Watch

• Keep an eye on “pending foreclosures” filings, rather than just completed foreclosures — they signal where the pipeline is growing. (In metro Phoenix, filings rose 47% in March year-over-year.) (AZCentral)

• Monitor homeowner cost-burden metrics (percentage of income spent on housing). For example, in Maricopa County there are ~239,000 households that are severely cost-burdened (spending ≥50 % of income on housing). (Maricopa Association of Governments)

• Track regional variation: certain counties (Pinal, Mohave, Yuma) are showing higher distress rates per unit in recent reports. (Safeguard Properties)

  
  

What You Can Do if you’re a Homeowner or Investor

Homeowners:

• Don’t wait. If you’ve missed one or more payments, call your lender, contact a housing counselor, and reach out to Empowered Home Solutions before you receive an auction notice.

• Gather your numbers: outstanding balance, payments missed, approximate equity, alternatives you’re willing to explore.

• Ask about creative solutions beyond “sell it” or “let it go.”

• Stay transparent with your family and trusted advisors — the stress compounds when you isolate.

  
  

Investors / Agents:

• Set yourself up as the local expert on distressed and pre-foreclosure properties in the Arizona West Valley / Phoenix metro / Pinal corridor.

• Build your network (attorneys, title companies, REO specialists, short-sale brokers).

• Be ethical. Distress creates urgency — but responsible investors honour homeowners and maintain good community relations.

• Use content marketing: blog posts, IG reels, YouTube shorts (you’ve got the visuals, the lifestyle connection) to position yourself as someone who solves problems.

The data shows that tens of thousands of Arizona homeowners are touched by the pre-foreclosure/foreclosure pipeline — and their stories are real. The numbers (approximately one in every ~4,000–4,600 housing units entering filing/foreclosure status) may not yet reflect a crisis at 2008 levels, but they do reflect meaningful opportunity and meaningful need. (Safeguard Properties)

At Empowered Home Solutions, we’re committed to standing at that intersection of helping homeowners and enabling investors in creative, win-win ways. If you’re reading this and you or someone you know is facing housing distress in Arizona — let’s talk. Because a home isn’t just walls and a roof — it’s the foundation of your life. And there’s power in the right solution, at the right time.

Ready to explore your options? If you’re in Arizona and you’re feeling the pressure of your mortgage or you’re considering selling but want to avoid foreclosure — contact Empowered Home Solutions for a free, no-obligation consultation. (602)344-9353| [Info@solutionsthatempower.com] | We specialize in creative, compassionate solutions. You're not alone.