The problems that led Bank of America and other lenders to halt foreclosures across the country may run deeper in Arizona than nearly anywhere in the U.S.

A mushrooming crisis over potential flaws in foreclosure documents is threatening to throw the real estate industry into chaos, as Bank of America on Friday became the first bank to stop taking back tens of thousands of foreclosed homes in all 50 states.

Arizona's budget troubles could force the state to delay paying some bills as early as September, state Treasurer Dean Martin said Wednesday, in a situation complicated by his effort to win the Republican gubernatorial nomination over Gov. Jan Brewer.