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.

New regulations have been proposed to help financially struggling families remain in their homes and reduce the number of Charlotte foreclosed homes for sale.

The North Carolina Office of the Commissioner of Banks has announced a proposal that would immediately stop foreclosures once troubled homeowners request for loan modifications. Currently, banks and mortgage lenders are simultaneously negotiating with homeowners who are seeking for loan modifications while pursuing foreclosure.

A proposed regulation also requires mortgage lenders to respond immediately to troubled homeowners when they request for assistance. If approved, the regulations would cover only mortgage lenders and brokers and exempted savings, loans and banks.

The proposed regulations are welcomed by industry experts who claimed that despite a significant decline in the number of foreclosure properties, the figures are still big enough to warrant more actions to prevent them from becoming an epidemic.

According to market data, a drop in the number of Charlotte foreclosed homes for sale was reported in August. About 76,134 distressed homeowners lost their properties to foreclosures for the month, representing a 12.7 percent drop from July.

Experts said that the drop could be attributed to the slow repossession activity of banks. It could also mean that the Obama Administration’s loan modification program has finally started to show some positive results.

They said that it is most probably that banks are delaying foreclosing on distressed properties. It is a known fact that banks incurred big losses when properties on their portfolio went into foreclosures. This could have influenced banks to delay foreclosure proceedings, thus allowing delinquent homeowners to still remain in their homes.

Experts explain that banks are into the financial business and do not want to become landlords. Furthermore, foreclosing on properties means homeowners would be forced to move out of the houses, leaving them vacant and no one to maintain them.

Delaying foreclosures means that banks have someone to care for the distressed properties, thus saving them the cost of maintenance.

However, the drop in foreclosure rate is not expected to last long as a flood of payment problems is expected soon as adjustable rate loans starts resetting. This problem is also compounded by record level unemployment rate.

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.

Market data has shown time and again that where unemployment is the highest, so is the number of foreclosed home. And the increasing foreclosure rate remains to be the strongest indicator of the current economic downturn.

The trend of rising unemployment and foreclosure is very much in evidence in Atlantic County, New Jersey. According to industry experts, 60 percent of the homeowners’ wealth are from their home equities. Losing a home to foreclosure means that a homeowner’s financial situation is in a very precarious position and everything could go downhill if no help can be found immediately.

Across the United States, foreclosed home started to sprout as the housing market collapsed and recession sets in. Foreclosures started increasing and they have not stopped yet. From July to September this year, the number of foreclosure filings rose by 5 percent compared with the previous quarter and a rise of 22 percent from the previous year.

In New Jersey, the foreclosure rate showed a slight decline early this year but is starting to rise again. In the third quarter, Atlantic County posted a 33 percent increase in foreclosure rates compared with the second quarter and a 9 percent rise from last year’s third quarter.

Comparable data showed that Cape May County posted a 30 percent increase in the third quarter, unchanged from the same period last year. In Cumberland County, foreclosure rates rose by 35 percent from July to September, representing a 6 percent drop for the same months last year.

Industry experts said that the figures indicated that more and more homeowners are in worst situations compared with last year. They noted that foreclosure rates are as high as last year, if not even higher.

Early in the foreclosure crisis, majority of homeowners defaulted on their mortgage payments due to bad lending practices. But as the economy continues to languish, it created another problem that exacerbated the foreclosure crisis: unemployment.

Industry experts said that unlike the first wave of foreclosures in which many of those who lost their homes were irresponsible borrowers, the current wave of delinquents are composed of prima mortgage borrowers, those who were creditworthy and have the ability to repay.

Last month, the unemployment rate in Atlantic County hit 12.2 percent, 8.5 percent in Cape May County and 12.6 percent in Cumberland County. It would not take long before these figures would translate into foreclosure home rates.

Industry experts believe that one way to prevent the spread of Atlanta foreclosed homes for sale is to make affordable housing accessible to everyone. Several branches of Federal Home Loans Bank (FHLBank) have made it their commitment to provide affordable housing to promote homeownership in the current economy.

The FHLBank of Atlanta is one of the district banks that launched the AHP which has become a critical and reliable gap financing source for developers of affordable houses. AHP is a major source of grants for affordable housing projects in the country.

Since its inception 20 years ago, the program has provided over $3 billion grants to various projects across the country, including helping to construct over 623,000 affordable houses, with 391,000 of them for low-income families.

At FHLBank of Atlanta, scoring incentives has been implemented this year for those applicants that have demonstrated their capabilities to secure funds that will leverage AHP funding. The bank also created a scoring incentive designed to reward projects that have become part of structured and coordinated effort to prevent the spread of Atlanta foreclosed homes for sale.

Industry experts said that the initiative is a reflection of the commitment of the bank to make AHP a part of the wide array of solutions designed to address the problem with affordable housing.

Last year, the FHLBank in Atlanta awarded a total of $46.3 million AHP grants to about 89 projects composed of 4,514 housing units. The grant awarding is based on a competitive cycle. Furthermore, nearly $17.7 million were granted to first-time homebuyers under the AHP.

Meanwhile, an Affordable Housing Finance survey of 12 district banks of the FHLBank showed that five units are experiencing a shortage in AHP funds this year. Industry experts said that this trend could continue until next year.

According to study data, the AHP funding posted a 23 percent drop from last year. Normally, district banks allocate 10 percent from their yearly net income for AHP funds. As a result, the funding for AHP can fluctuate, with the availability of which dependent on the bank’s profits. This means that if the bank experienced a drop in profits, it would have less money to fund its affordable housing program.

Detroit foreclosed homes for sale is mounting and the numbers are expected to continue climbing in the coming months. Industry experts said that the increasing foreclosure trend is an indication that the tax foreclosure system in the Michigan city is failing.

Driving around the city of Detroit, one could see older ranch-style houses that were constructed and financed by religious organization and wide, open spaces where houses have been burned down or demolished.

For the October auction, Wayne County officials listed 15 vacant land holdings in just one street. These vacant lots were foreclosed after their owners failed to settle their taxes which were overdue for three years. At the auction, none of the land holdings were sold at the $500 minimum bid.

Meanwhile, residents were not aware that many properties in their neighborhoods were on Detroit foreclosed homes for sale. Industry experts said that many people are struggling financially, leaving the city with no option but to send workers to do the mowing of lawns in vacant and foreclosed properties.

Detroit was once an industrial powerhouse before the economic downturn and the collapse of the housing market. Now, it is viewed as a dying city with 28 percent unemployment. Its foreclosure system is based on the belief that the housing markets will recover and buyers must continue to rule.

In a recent tax foreclosure auction, over 80 percent of properties on sale failed to find interested buyers. The immediate goal of Wayne County officials was to offset the total cost of holding the foreclosure auction in a ballroom in downtown Detroit.

Sales of properties in the foreclosure auction of nearly 200 transactions reached more than $250,000. Industry experts said that public tax foreclosure auctions are good in terms of bringing in quick cash. However, the events do nothing to prevent or control the blight in neighborhoods.

Some proponents of change said that it would be better for Detroit and other cities across the country that are experiencing a declining growth, to phase out tax auctions. They believe that a land bank program is the right way to reduce the number of foreclosure properties. The program allows selling of more valuable homes through mortgage brokers to entice new residents.

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.