Interesting article about the status of foreclosures around the country. Improved employment opportunities and increasing home values have lessened the inventory of homes in foreclosure.
Arizona is in relatively good shape, as shown in the map. This is not because of employment improvement but because we have a foreclosure system that has cleared out underwater homes more quickly than some of the states shown in red (like Florida and Illinois). We have benefited from rising home prices, largely because of low inventories of homes for sale.