Valley zip codes rank high in foreclosures

PHOENIX - Stepping over trash, weeds and  broken glass, Janet Gottschalk is assessing her south Phoenix neighborhood.

"Trashed isn't the word for it," she said as she peered through a broken window in an abandoned home.

"From right where we are standing, I can name off six of them right around us," she said.

Her neighborhood, in zip code 85041, is among one of the hardest hit by foreclosures, according to a CNN Money study done by Realty Trac.

"We are watching our neighborhood just get completely destroyed right around us," Gottschalk said.

Most of the houses here are only a few years old, but signs of neglect and vandalism are showing, and it's affecting property values.

"Our house is worth about a fourth of what we paid for it five years ago," Gottschalk said.

Seleena Money tells ABC15 that she's seen people steal appliances and vandalize empty homes in the area. She's also seen people inside the vacant house right across the street.

"It affects everything, people's property values. Look at it. Nobody wants to live next door to that," Money said, gesturing to the abandoned residence.

She's also concerned about a criminal element moving in.

"It attracts criminals, I say. Because when they steal something, they have a place to run to right there," she said.

Some indicators are pointing to a recovery, but it's a long way to recovery for people living in 85041.

CLICK HERE TO SEE A MAP OF FORECLOSURES AROUND THE NATION