Foreclosure filings across the nation grew by more than 50 percent in July

Foreclosure filings across the nation grew by more than 50 percent in July, compared with the same month a year ago, according to data released Thursday, August 14th, 2008.

Arizona ranked fourth among the states in foreclosures, the RealtyTrac report said.

Nationwide, more than 272,000 homes received at least one foreclosure-related notice in July, up 55 percent from about 175,000 in the same month last year and up 8 percent from June. One in every 464 U.S. households received a foreclosure filing last month.

One West Valley woman finds herself too close to the story.

Rosa Garcia, a single mother of two, was looking for a life away from the hustle and bustle of Phoenix when she fell in love with a brand new home in Buckeye two years ago.

It was easy to buy.

"I was like, "Oh, a piece of cake. I'm in a bigger home and I'm in a better place. For the price I was paying, it was awesome."

Two years later, she's still fond of the neighborhood, but said she must leave.

"Everybody in our community kind of knows each other. My kids have built a lot of friends there. They're sad, they don't want to move, they don't want to lose the house."

Garcia's payments have gone from $1,200 a month to more than $1,700 and now she can't make ends meet.

She admits she had no clue about the fine details of adjustable rate financing when she got her mortgage. She urges other people not to make the same mistake -- to make sure they know the consequences of what they're signing.

"And try to buy something that you need, not something that you want. Houses are beautiful nowadays, they look so beautiful and everything, but sometimes beautiful becomes very expensive."

Garcia said, "I can't take my kids out anymore because I'm on a strict budget. There's no fun times. I don't feel free. I can't be going out with my friends because of the money issue."

Garcia said she may be forced to leave her home this fall.

"I have to come to realize that, right now, the house is not work what I am paying and it's a big sacrifice. It makes me feel like I work just to pay for the house."

Although this is a sad story and one of many, people must know how to budget and make ends meet in good times as well as bad. I'll be the first to say that yes, many loan companies are to blame for this horrible housing market, however, it all goes back to the age old saying of "if something looks to good to be true, then it probably is". It doesn't make sense that someone can get into a $250k home when they could barely make their apartment rent of $700 a month.

I don't see this market turning around until a few more years. There is still a lot of great deals to be had, but for every awesome deal, there will be with that a sad story like the one above. Please read your contracts and make sure you completely understand them!