Hi Tom. According to the trustee's website, www.priorityposting.com, it went back to the bank on 6/18/09 at 10:00am. It was auctioned at the trustee's site in Phoenix and no one bid on it, which means the bank that forecloses on it takes it back and now must sell it.
It should be coming on the market again soon once the bank chooses an agent to list it. With all of the moratoriums on foreclosures in the past 6 months being imposed by Fannie Mae and Freddie Mac, a lot of the banks are taking it slow when it comes to re-listing the property once they foreclose on it. It sometimes takes up to 6 months to get it relisted. I've also seen the banks relist them the next day. There's no way to tell.
By doing it this way, the banks believe that it will slow the decline in property values; it's supply and demand. If the demand remains strong, and the supply is down, then prices/values should remain fairly stable. It's when there is way too much inventory (like the past 1 1/2 yrs) that the property values decline rapidly. I suppose it's better than flooding the market with hundreds if not thousands of listings at a time.
If you're interested in this home, let me know and I'll keep a watch on it for you. Send me an email with your contact info and I'll keep an eye on it and let you know once it becomes available.