Short Sales & Foreclosures in Arizona 2025: What Title Companies, Agents, and Homeowners Should Know
Arizona’s housing market has long been a bellwether for national real estate trends — and in 2025, the data show a clear rise in distressed sales. Whether you’re a title company preparing files, a real estate agent juggling short sale listings, or a homeowner exploring your options, understanding what’s happening across the state can help you navigate this changing market more effectively.
Rising Distress Levels Across Arizona
According to the ATTOM Mid-Year 2025 Foreclosure Report, Arizona saw roughly 4,191 foreclosure filings between January and June 2025. That represents about 0.13% of all housing units — roughly one filing for every 750 homes statewide.
What’s more striking is the year-over-year jump: foreclosure activity is up 37.3% compared to the same period in 2024. While these numbers are far below the peaks seen after 2008, they indicate that more homeowners are beginning to struggle with higher mortgage rates, cost-of-living pressures, and post-pandemic financial resets.
In April 2025, data from Safeguard Properties show 675 Arizona properties entered foreclosure — translating to one filing for every 4,655 housing units. Counties like Maricopa, Pima, and Pinal have seen the largest concentration of new filings, reflecting both population density and home price growth that outpaced income in recent years.
Short Sales Are Quietly Returning
While foreclosure filings make headlines, short sales often tell the more nuanced story behind them. A short sale allows a homeowner to sell their property for less than what’s owed on the mortgage, with lender approval, avoiding foreclosure and its long‑term credit damage.
In Arizona, many lenders are again open to these negotiations — especially when there’s a cooperative borrower and a clean, well-managed file. For agents and title professionals, this means that short sale coordination is once again becoming a critical skill.
At Crisp Short Sales (https://www.crispshortsales.com/), we specialize in short sale negotiation and processing for homeowners and agents throughout Arizona and across the U.S. From document prep to approval, we manage the entire lender process so closings stay on track and stress stays low.
For Title Companies
If you’re a title or escrow professional, rising short sales can create added complexity in your closing pipeline — extra lien releases, payoff statements, and layered approvals. That’s where having a dedicated short sale partner can save days (and headaches).
Learn more about how we help title companies streamline short sale closings (https://www.crispshortsales.com/how-we-help) and reduce risk when files hit your desk.
For Agents
Agents facing new short sale listings need confidence that the deal will close. Working with a short sale processor like Crisp allows you to focus on marketing and negotiation while we handle the lender side.
We’re already helping real estate agents close short sales faster across Arizona — and because our service is paid by the buyer at closing, there’s no cost to the agent or seller. See who we serve here: https://www.crispshortsales.com/who-we-serve.
For Homeowners
If you’re a homeowner in financial distress, the best move is to act before foreclosure starts. A short sale can help you avoid foreclosure, protect your credit, and even receive relocation assistance at closing. Learn how our process works and what programs might apply to your situation here: https://www.crispshortsales.com/start-short-sale.
The Takeaway
Arizona’s uptick in foreclosure filings doesn’t necessarily mean another housing crisis — but it does signal that distressed sales are back on the radar. For title companies, agents, and homeowners, understanding and preparing for these scenarios is key.
By partnering with an experienced short sale processor, stakeholders can turn distressed deals into closed transactions — keeping clients protected, lenders satisfied, and communities stable.
Sources:
- ATTOM Mid-Year 2025 Foreclosure Report
- Safeguard Properties State‑by‑State Foreclosure Rankings (April 2025)