The Auction Isn't the Opportunity

The Auction Isn't the Opportunity

Executive Director’s Column — August 2026
Michael Del Prete, Executive Director, AZREIA

Foreclosure activity is rising in Arizona.

Through the first half of 2026, 5,412 Arizona properties had a foreclosure filing up 29% from the same period last year.

That headline naturally has investors asking: Are the deals coming back to the foreclosure auction?

Not so fast.

There’s a big difference between a property entering foreclosure and a property actually reaching the auction—and an even bigger difference between an auction and a good deal.

In April, across Greater Phoenix, 140 homes completed foreclosure. Seventy-five sold to third-party buyers. The other 65 reverted to the lender.

Seventy-five houses across Maricopa and Pinal counties. Roughly three per business day, with experienced cash buyers competing for the same inventory.

Auctions can absolutely work for a well-capitalized investor who does the homework. But you’re dealing with limited inventory, immediate funding requirements, possible occupants, uncertain repairs, and other risks. A discount from retail value does not automatically equal profit.

The bigger opportunity may be before the auction.

Maricopa County can have roughly 1,300 active Notices of Trustee Sale at a given time. Many never reach the courthouse steps. Owners cure the default, refinance, negotiate with the lender, or sell.

And when an owner has equity, there are options.

That creates an opportunity to have a conversation 30, 60, or 90 days before the auction to understand the situation, inspect the property, negotiate, and potentially create a solution that works for everyone.

But first, you have to get into the conversation.

A homeowner calls an agent. An agent calls an investor. An attorney, lender, wholesaler, or fellow AZREIA member knows someone who needs help.

Who gets that call?

Usually someone they already know and trust.

That’s why your network isn’t separate from your investing business. Your network is part of your investing business.

Show up. Know the numbers. Meet people. Build relationships before you need the deal.

The auction gets the headline.

The relationships you build before the auction are where many of the real opportunities begin.