Signs of a slowdown in national foreclosure activity were reported in a market survey released on Thursday, but the heat is not off residential housing yet.

Foreclosure filings were down by 2 percent in February, according to the RealtyTrac report, with 1 in every 418 U.S. housing units receiving a foreclosure filing last month.

For the 12th straight month, more than 300,000 properties received foreclosure filings. So while February was an improvement over January, foreclosure rates were still 6 percent above what they were in February last year, the report said.

Full story is available on The Epoch Times

The pace of home foreclosures has slowed down. According to Realty Trac the number of U.S. households facing foreclosure last month grew 6 percent from the level a year ago. That’s the smallest annual increase in four years.

Chris Thornberg of Beacon Economics says that slower rate of foreclosure growth looks promising, until you realize that during the fourth quarter of last year roughly 14 percent of all mortgages held in California were delinquent. That’s nearly four times higher than any point before the most recent real estate cycle. And Thornberg believes we won’t see a true recovery in this sector, until the government stops propping up many underwater mortgage holders.

Full story is available on kcbs.com

Following up yesterday’s very important story of the parrot who was seized as part of a home foreclosure gone wrong, I noticed some further details in this  Wall Street Journal piece—scary details:

Mortgage lenders have struggled in the past three years to hire and train enough people to deal with the biggest wave of foreclosures since the 1930s. Nearly eight million households, or 15% of those with mortgages, are behind on their payments or in the foreclosure process.

And (cue Capra on this one):

At the same time, suicide threats from distressed borrowers are so common that one lender, OneWest Bank Group in Pasadena, Calif., had to establish procedures for alerting the police.

Full story is available on The L Magazine

One of the more popular shows on television is once again receiving some harsh criticisms.  The ABC’s hit television show Extreme Makeover Home Edition is under fire for the recent rash of foreclosures  that their homes have gone through.  In the show families in need apply for the Extreme Makeover crew to come to their town and build them a brand new home in an effort to increase the family’s quality of life.

In recent months, with the slumping economy, up to six families that have appeared on the show have already found themselves unable to afford the higher property taxes, utility and maintenance bills.  Because of these higher costs associated with their new homes these families have been forced to foreclose on their new dream homes and this is what has drawn some harsh criticism from the general public.

Full story is available on loansafe.org

State officials said they hope new interest rates will help jumpstart the housing market.

The Maine State Housing Authority is offering new interest rates as low as 4.45 percent along with a package of incentives worth up to $3,000.

Officials said they hope to convince potential first-time homebuyers to act in time to receive the federal tax credit worth $8,000, as well as improve the efficiency of their homes.

Full story is available on wmtw.com

In an effort to end the foreclosure crisis, the Obama administration has been trying to keep defaulting owners in their homes. Now it will take a new approach: paying some of them to leave.

This latest program, which will allow owners to sell for less than they owe and will give them a little cash to speed them on their way, is one of the administration’s most aggressive attempts to grapple with a problem that has defied solutions.

More than five million households are behind on their mortgages and risk foreclosure. The government’s $75 billion mortgage modification plan has helped only a small slice of them. Consumer advocates, economists and even some banking industry representatives say much more needs to be done.

Full story is available on The New York Times

With a record number of homes being foreclosed all across the country, you may have investigated purchasing one. But since most of them need some fixing up, you may have thought against it, thinking the savings on the house would be more than eaten up in the cost of fixing it up. Or perhaps you want to keep your home, but it requires a lot of repair. The Federal Housing Administration (FHA) offers the FHA 203K Mortgage that can be used for both of these purposes. This type of mortgage not only prevents neighborhoods from becoming blighted by a large number of foreclosures, it can also be used to help save the environment by altering homes so that they can become more energy efficient. Some of the green additions you can make include windows, furnaces, appliances, floors, landscaping, solar panels and insulation. Certain repairs can be made by the borrowers themselves and not a contractor.Although not a loan from the government, a FHA loan is guaranteed by the government. FHA 203K Mortgages have existed for decades, and have regained popularity in the wake of the sub-prime loan meltdown. Because some banks and mortgagors are struggling to survive due to unprecedented loan defaults, conventional loans are now requiring a 20 to 30 percent down payment. First-time home buyers are hard pressed to come up with this large amount of money. But, a FHA 203K Mortgage only requires 3.5 percent down. These loans also offer more favorable terms and simpler qualification than do conventional loans.

Full story is available on HUD Housing

The majority of realtors do not think the federal government’s loan modification program has reduced foreclosures in their region, according to a recent survey by Homes & Land.

The Home Affordable Modification Program was launched last spring to allow distressed homeowners to modify their monthly mortgage payments. By reducing payments to 31 percent of the household’s monthly income, it aimed at preventing foreclosure.

The program was intended to help 3 million to 4 million homeowners. By January, it had provided permanent loan modifications to more than 116,000, according to a Treasury Department report, with another 76,000 modifications pending.

Full story is available on credit.com

The city of Oxnard received a little more than $2 million in funds from the Neighborhood Stabilization Program (NSP) to aid in the purchasing and rehabilitation of foreclosed homes. Oxnard received notification of the award more than nine months ago, but after dealing with demanding federal and state regulations, has only started using the funds recently.

“The city was required to go through a number of pre-operational steps, such as hearings and approvals, etc.,” said Oxnard housing director William Wilkins. “As with any program where state or federal funds are awarded, you are required to complete a massive amount of paperwork and processes prior to actual implementation of the program.”
The program was established with the goal of stabilizing communities that have suffered from foreclosures and abandonment. The NSP was created under the Housing and Economic Recovery Act of 2008, and with this grant, it made awards to a total of 309 grantees, including states and territories.

Full story is available on Ventura County Reporter

As Las Vegas emerged as the epicenter of the U.S. mortgage-default crisis, Jonathan Griffin found a niche as the leading bidder for foreclosed homes in the gambling capital.

Mr. Griffin, who died Sunday at age 27, was a high-school dropout who had worked as a busboy and real-estate agent. His family said the cause of death hadn’t been determined, pending autopsy reports.

Mr. Griffin was an innovator in the booming business of helping investors buy foreclosed homes. His firm, Griffin Group, has offices overlooking a parking lot in downtown Las Vegas where home auctions—known as trustee sales—are held every weekday. He earned fees by providing data on homes headed for auction and related services, and bidding on behalf of investors.

Fulls tory is available on Wall Street Journal