Finding a foreclosed home in the Washington, D.C. metro area for investment can become a reality for more investors now that Prince George’s County, which is part of the Washington, D.C. metro area, posted more foreclosures in October compared to the same month last year.

According to a real estate research firm, over 2,000 households in Prince George’s County were hit with foreclosure cases in October, accounting for almost one-third of all filings in the Washington, D.C. metro area.

One residential unit out of every 157 units in the county was hit with a foreclosure notice, much higher than the rate of Maryland, which is one out of every 348, and the country, which posted a rate of one out of every 385.

Nationwide, foreclosure activity slowed down compared to September, but still at a higher pace compared to October last year. According to analysts, the three months of consecutive monthly drops may be signaling the start of a real recovery in the nationwide housing market.

But one can still find a good foreclosed home in the capital region because of the increase in filings in Prince George’s County and despite drops in filings in the counties of Prince Williams, Loudoun and Fairfax.

The pace of foreclosure in Prince William declined by more than 50 percent compared to last year while Loudoun and Fairfax posted lower rates of decreases. But the foreclosure rates of Prince William and Loudoun were still higher than Virginia’s rate of one residential unit out of every 597 units.

The D.C. areas not suffering from a lot of foreclosure activity are the inner suburbs of Arlington and Alexandria.

According to analysts, the major factors causing continued foreclosures in other areas of the country are also the major factors pushing foreclosure activity in the Washington, D.C. metro area. Unemployment, negative equity and high-risk mortgage loans are still the major factors for defaults and foreclosures.

Implementation of the Home Affordable Modification Program has been stepped up, but there are still a lot of distressed homeowners who cannot qualify for the program because of loss or reduction of income.

In the Treasury Department report released this week, total home loan modifications nationwide have surpassed 650,000 as of October 31, but the number is still small compared to the record numbers of foreclosures and distressed homeowners. The nightmare of being forced out of a foreclosed home is still a reality for many American homeowners.

Cheap foreclosure houses for sale are growing in numbers every day as more and more houses and development projects go into foreclosures. One of the latest victims in the current economic downturn and foreclosure crisis is a townhouse development project in New Jersey.

The Riverwalk townhouse units were built with the purpose of bringing in new homeowners, new development, parks and infrastructure to the New Jersey city of Rahway. However, as the economy plunged and unemployment rate rose, only two thirds of the townhouse units were sold. This resulted to the developer’s failure to pay its tax bills and reneging on its promised street work.

The city government now wants to repossess the unsold townhomes. However, it was beaten by the Bank of America which sought to collect on the loan amounting to $11.8 million. The bank claimed that the developers of the townhouse project defaulted on its mortgage.

The city of Rahway’s chance to collect on unpaid taxes was limited when the foreclosure process started in Union County Superior Court. But the city hopes to collect the unpaid taxes from the Bank of America which filed foreclosure proceedings on 19 unsold townhome units.

Industry experts said that the cheap foreclosure houses for sale are increasing not just in the city but in other parts of the county. And a great amount of these foreclosure properties are from development projects.
In the case of the Riverwalk townhomes, the developer owed the city money for unpaid taxes and for road work that it failed to do. But the city government said that the tax liens of the townhouses will continue to apply on any entity that will purchase the townhomes through foreclosures.

Industry experts said that a city government has the right to seek for payments for back taxes first, adding that taxes come before the loans. They expect the bank to be easy to deal with compared with the Riverwalk developer who refused to return calls from the condominium association or the city.

Under the agreement made in 2002, the Riverwalk developer was to construct 86 townhouses. The agreement also includes installation of sidewalks, street paving, sewage work and landscaping.

In the meantime, tenants of some units in the Riverwalk development are concerned that the presence of cheap foreclosure houses for sale would affect the values and prices of their properties.

Home foreclosure sales and short sales in Jacksonville pushed down house prices in the July to September quarter in the area, based on data from Florida Realtors.

Sales prices for single-family residential units in Jacksonville fell by 17 percent to $150,600, a decrease from $180,600 last year. Home sales increased by 28 percent compared to sales last year to 3,377 units, as buyers took advantage of lower mortgage rates and the federal $8,000 tax credit.

Across Florida, the sales price median for single-family residential units dropped to $145,400, a 22-percent drop from last year’s third quarter. However, the third-quarter sales price median showed an uptick of 1.25 percent from the $143,600 price median in the previous quarter.

Sales of condo units in Jacksonville climbed up by 54 percent from total sales last year to 435 units as buyers got enticed by the lower prices. The sales price median dropped in the third quarter to $114,600, marking a decrease of 22 percent.

Statewide, sales of pre-owned condo units increased by 56 percent as the sales price median fell to $106,100, a drop of 34 percent.

Other cities where home prices fell substantially because of foreclosure sales and short sales were Cincinnati, Charlotte and Atlanta, based on reports released this week by the National Association of Realtors.

During the same quarter, the pace of foreclosures in Jacksonville soared by 63.5 percent from the third quarter in 2008. Nearly 1.5 percent of all residential units in the area or almost 8,700 units went into default or into foreclosure, pushing house prices down and driving higher volumes of home foreclosure sales.

According to Anthony Crocco of Metrostudy, which has been monitoring the Jacksonville housing market, house sales in the next several quarters will still comprise a large portion of short sales and foreclosure sales.

However, Crocco contended that because of the better economic situation of Jacksonville compared to other Florida cities, Jacksonville will recover more quickly.

He added that it is with this optimism that home builders continued to construct homes despite foreclosures during the July to September period, although at a much lower rate than the past years. He said that builders started to build 885 units in Jacksonville, lower by over 25 percent than the 1,181 units started during the same quarter in 2008.

In the Jacksonville metro area, new homes priced in the range $150,000 to $200,000 were the kind of homes able to compete with home foreclosure sales.

Filings for San Francisco foreclosed homes for sale still dominate the housing market in California in the third quarter. During the period, the number of notices of default increased by 25.2 percent on a year-to-year basis. The figures represented a 72.0 percent to 607 from 353 in the San Francisco proper.

In Bay Area, the actual number of foreclosures during the period dropped by 38.3 percent from July to September, on a year-to-year basis. However it rose by 31.6 percent to 43 compared with the second quarter.

Industry experts said that based on recent market data, San Francisco foreclosed homes for sale continued to be a major problem for communities and neighborhoods in the area. In September alone, about 4,000 homeowners in Bay Area received at least one foreclosure filing. The figures represented a 116 percent increase compared with the same month a year ago.

Experts said that the massive job loss in the area is a key factor that drives up foreclosures. The unemployment problem transcends social status and race and has affected people from all walks of life.

It is very disheartening to note that a great number of homeowners who are at risk of foreclosures were creditworthy and did not go into foreclosures because they took out bad loans. They are in a precarious financial situation because of mitigating circumstances, such us loss of job, divorce, health or business failure.

Compounding the problem is the declining home prices and values which left many homeowners underwater, meaning they owe more on their mortgages than the value of their properties.

On a lighter note, the declining home prices attracted many bargain-hunting buyers to flock to the foreclosure market. In September, home sales in the region increased by 4.8 percent from the previous month and nearly 8.4 percent on a year-to-year basis.

Industry experts attributed the robust selling activity in the housing market to low mortgage rates and first-time buyers who take advantage of the $8,000 federal tax credit before it expires by the end of November.

Industry experts pointed out that the region has been badly beaten by the collapse of the housing market, resulting to a staggering increase in foreclosure homes that, together with tight lending rules and increasing unemployment rate, have pulled property prices down.

Bank foreclosure homes are rising in number in high-end neighborhoods in the San Francisco Bay Area, based on an analysis of foreclosure data by the Chronicle.

According to the study, the number of high-end houses in foreclosure in upscale neighborhoods such as Greenbrae, Los Altos and Alamo in the 9-month period ended September rose by around 200 percent compared to the same nine-month period last year. In these neighborhoods, the median home price exceeds $1 million.

Foreclosures in mid-scale neighborhoods such as Los Gatos, Walnut Creek and Campbell are also rising. In these areas, the median price hovers around $500,000.

Housing analysts said that while the foreclosure numbers in high-end communities are not as high as those in lower-cost communities, the significant increase in the pace of foreclosures in high-cost areas is alarming.

In Saratoga, where homes are being listed at the median price of $1.34 million, a total of 101 notices of defaults were filed in the first three quarters of this year, marking an increase of 43 percent from the same 9-month period in 2008 and representing a default rate of eight notices for every 1,000 houses. Based on an analysis of past records, more than 50 percent of homes notified of default ultimately became bank foreclosure homes.

The pace of foreclosures is even higher in the suburban areas of San Francisco such as zip code 94531 in Antioch, which is among the most foreclosure-clobbered areas in the area. During the first 9 months, homeowners in the area received 1,123 notices of default, representing 90 residential units in foreclosure for every 1,000 houses. The median home sales price in the area is $231,090.

All in all, 17 percent of San Francisco area default notices during the first three quarters were in neighborhoods where the median home price exceeds $500,000, a substantial increase from a little over 12 percent in 2008.

Peter Schiff, head of Euro Pacific Capital, said that a lot of California residents who own homes worth $1 to $3 million purchased larger and costlier houses than they needed. He added that many of them made their purchases partly for investment, but they are now being overwhelmed by the depression in prices.

According to housing analysts, many affluent buyers may have accumulated higher home equities, but the resetting of their adjustable mortgage loans and their inability to obtain jumbo loans may have pushed them to let their properties turn into bank foreclosure homes.

Home sales in Santa Clara County, California rose by 17 percent last month and San Jose foreclosed homes for sale are credited for this positive trend. According to industry experts, the 17 percent increase in home sales activity in September compared to the same month a year ago, is attributed to first time buyers who take advantage of the $8,000 federal tax credit and cheap foreclosure homes.

The rise in home sales in the area is reflected in some places across the country. The recent activity in the housing market is helped by first time homebuyers and cash-rich investors who find bargain-priced foreclosure homes good investments.

Meanwhile, the median home price dropped by almost 2 percent in September compared with figures in August. Industry analysts said that the decline could mean that the housing market is nearing the bottom.

Santa Clara posted home sales of 1,307 last month, an increase from the same month last year’s 1,116.

Similarly, year-to-year data showed that the median home price declined by 8 percent to $506,000 from $550,000. But industry experts pointed out that the 2 percent decline in the August-September $515,000 median price was less serious compared with the 5 percent drop in the July-August period.

With market indicators fluctuating, the number of San Jose foreclosed homes for sale remained at a record high. Also, the number of non-owner occupied purchasing is above average. Industry experts said that the erratic numbers are indications of market trends.

On the other hand, foreclosure properties accounted for 27.2 percent of the total September sales of all residential homes and condominiums. The figures represented an increase from the 26.4 percent foreclosure sales in August.

Industry experts said that the numbers are still historically high. They pointed out that in September 2007, foreclosure properties accounted for 3.9 percent of the total home sales. Experts said that the foreclosure numbers remain at a record high because many homeowners are finding it difficult to modify their loans.

Also, a growing number of homeowners owe more on their mortgages than the value of their properties and majority of them just turned their backs and allow banks to foreclosed on their houses.

Yet, the abundance of low-priced foreclosure houses are attracting hordes of bargain-hunting homebuyers, resulting to home sales increases.

Tips on how to find foreclosure homes easily and quickly can be found anywhere. But industry experts believe that no matter who gave the advice or where the advice came from, the bottom line is the foreclosure investing market is not for the faint of heart. As such, all industry gurus agree in recommending to prospective buyers to study the market first before plunging into it.

The current number of cheap foreclosure homes is staggering. And with the unabated rise in unemployment and the scheduled resetting of adjustable rate loans, there seems to be no end in sight for the foreclosure crisis.

The foreclosure crisis may have brought devastation to many homeowners’ lives but it also provided opportunity to others to purchase houses which they could not have done in the previous years. The low foreclosure home prices allowed many people to fulfill their dreams of becoming homeowners.

But how to find foreclosures homes is not a walk in the park. There are pitfalls that buyers who did not take time to study the market would easily fall into. Experts said that buyers should always keep in mind that they could not always find foreclosure houses in good conditions that are located in prime areas and at 50 percent discount. The possible price range would be less than 20 percent from the prevailing market price.

Experts said that underpriced foreclosure houses do not stay long in the market. But buyers could also find better deals on overpriced foreclosure properties. They said that many overpriced properties do not get that much interest and may be on the market for a longer period. Therefore, if potential buyers make an offer for overpriced properties that have been languishing on the market for more than a year already, banks would act on the offers immediately.

Meanwhile, experts suggest that potential buyers find foreclosure houses in good neighborhoods to ensure quick home value recovery. One indicator that home values will not drop drastically in a certain area is the presence of a school district.

Another advice given by experts on how to find foreclosure homes that would bring in huge profits is to search the Internet. Online foreclosure listings are updated frequently to carry the latest foreclosures on the market.

Tenants of Boston foreclosed homes for sale have found a lifeline among housing advocates who held a rally to demand protection for them. Housing advocates have demanded protection for tenants in apartment buildings that are U.S. Department of Housing and Urban Development (HUD) subsidized.

The rally, which was held in Cleary Square in Boston, Massachusetts, was aimed to show support for treaties and proposed legislation that would provide help to low income families to stay in their apartments at affordable market rates. The rally was planned and initiated by the Massachusetts Alliance of HUD Tenants, a coalition of tenants in HUD-subsidized apartments.

According to industry experts, about 1,750 HUD-subsidized apartments were converted by their owners to market rates. An additional 8,000 apartments are at risk, including 250 elderly houses at Blake Estates and 967 apartments at Georgetowne.

The housing advocates are committed to changing federal, state and local law that would give non-profit organizations and local governments the right to first refusal to purchase HUD-subsidized apartments that are being occupied by renters at market rates.

The group also calls for the reinstitution of several tenant protections that have been lost in the past 20 years. Furthermore, they also called on the federal government to sign the International Covenant on Economic, Social and Cultural Rights, giving all people housing rights.

Tenants are just some of the unsuspecting victims of the growing Boston foreclosed homes for sale. Many of them do not even know that the apartments they have been renting are into foreclosures because landlords either neglected to inform them or just do not care anymore. This resulted to many tenants finding themselves being evicted through no fault of their own.

An increasing number of apartments in the city have been foreclosed or are going into foreclosure. According to industry experts, during the peak of the housing market, many landlords bought properties at high prices thinking that the increasing rental rates would allow them to recover their investments immediately.

When the housing market collapsed, they found themselves having apartment buildings with many vacant units. With home prices at below market value, people who have the financial means prefer to buy cheap foreclosure properties rather than rent.

Representative Jose Serrano and Senator Charles Schumer have called on government-sponsored enterprise, Federal National Mortgage Association or Fannie Mae to shoulder the cost of maintaining Bronx foreclosed homes for sale.

Both lawmakers claim that Fannie Mae has abandoned its responsibility of maintaining 14 dilapidated, foreclosed apartment units in Bronx. Fannie Mae backed out of its initial plan to sell the mortgages of the apartment buildings through an online auction.

Instead, the federal agency wants to dispose of the foreclosure properties by way of a competitive auction. However, both Serrano and Schumer said that staging the bidding process could take a year or more and would transfer the responsibility to maintain the Bronx foreclosed homes for sale to the city government and affordable housing organizations.

Both politicians agree neither affordable housing organizations nor the city of Bronx should be held responsible for the deterioration of the apartment buildings. The lawmakers wrote a letter to Fannie Mae executive vice president Kenneth Bacon to urge him to cancel the competitive bidding and instead opt for a speedy foreclosure proceeding.

They then suggested the transfer of the foreclosed apartment units to developers with experience on affordable housing. Additionally, they suggested that Fannie Mae create a fund for the improvement and maintenance of building conditions until such time that a foreclosure sale has been completed.

Industry experts said that selling the debt is tantamount to selling the problem, adding that the process would just create a period of uncertainty with no or little resources coming into the buildings.

Meanwhile, affordable housing developer, Fordham Bedford Housing Corp. has withdrawn its interest on the Bronx foreclosed apartments saying that the project is no longer suited for the company.

The problem facing the Bronx properties started when Ocelot Capital, a real estate investment company, purchased the portfolio for about $36 million during the peak of the real estate market in 2007.

Fannie Mae acquired the loan from Deutsche Bank for $29 million only to discover later that it failed to meet the agency’s underwriting standards. Ocelot abandoned the apartments and the loans went into foreclosures last March.

Affordable housing officials and advocates are hoping that a resolution on the issue could be used as an example for similar properties. Over 3,000 apartments are already Bronx foreclosed homes for sale with an estimated 70,000 more facing the threat of foreclosure.

There are many ways to buy foreclosure homes for sale, but one of the best ways for new homebuyers is to buy through a bank. Banks sell foreclosures, which are known as REO (Real Estate Owned) properties. These homes have been repossessed because previous homeowner have not paid their mortgage. Banks are very eager to sell these properties and therefore often price them below market value. Bank foreclosures are good foreclosure homes for sale for first-time buyers because they have fewer risks than most foreclosures – the bank takes care of evicting tenants and any clouds on title in most cases.

Bank foreclosures are also easy to buy. Many banks hire third-party real estate agents to take care of foreclosure sales. This means that buying a bank foreclosure in many cases is just like buying a traditional home – just with nicer prices. If a bank does not use a real estate agent, you may need to negotiate directly with the bank. In these cases, the bank usually has a specialized department for handling foreclosure sales.

If you want to buy REO foreclosure homes for sale, start by contacting banks to get their foreclosures listing or consult a good foreclosure list to get the foreclosures listings for several banks. Find out when the bank will need to submit information to shareholders – banks will be most willing to lower their prices in the weeks leading up to this date. Finally, once you find foreclosure homes for sale that interest you, contact the bank or real estate agent for a tour and for more information.