For the third quarter of 2011 RealtyTrac reports that 20 percent of all existing home sales were bank owned or being foreclosed. This is down from 30 percent of all sales in the third quarter of 2010.

The latest RealtyTrac figures might be seen as good news were it not for the glum reality which makes such numbers correct: There are fewer foreclosures in large measure because lender paperwork is not accepted at face value in many courts as a result of robo-signing. Yes, courts will accept lender foreclosure claims, but in many cases only with additional assurances and reviews that delay the process — and protect homeowners from flawed foreclosure claims.

“While foreclosures continue to represent an excellent bargain-buying opportunity for many buyers and investors, foreclosure sales accounted for a smaller share of the total market in the third quarter. That trend is not too surprising given the continued ambiguity surrounding proper foreclosure procedures — and the ripple effect that has on sales of foreclosed properties that might have been improperly foreclosed,” said Brandon Moore, chief executive officer of RealtyTrac. “The sooner the market gets more clarity about accepted foreclosure procedures, primarily through the long-promised settlement between multiple states attorneys general and major lenders, the sooner the market can more efficiently dispose of these distressed properties.

“Even with the hurdles to selling foreclosures, foreclosure sales continue to represent a historically high percentage of all sales,” Moore continued. “In 2005 and 2006, foreclosure sales consistently accounted for less than 5 percent of all sales nationwide.”

Pricing

Buyers, says RealtyTrac, purchased 221,536 residential properties during the third quarter that were in some stage of foreclosure (NOD, LIS, NTS, NFS) or bank-ownship (REO) during the third quarter.

The average sales price of homes in foreclosure or bank owned was $165,322 in the third quarter, according to the company.

The average sales price of these foreclosure-related sales was 34 percent below the average sales price of homes not in foreclosure, matching the 34 percent foreclosure discount in the second quarter but below the 37 percent discount in the third quarter of 2010.

RealtyTrac also provides the following information:

Pre-foreclosure sales flat from year ago, REO sales down

A total of 92,824 pre-foreclosure homes — in default or scheduled for auction — sold to third parties in the third quarter, a decrease of 9 percent from the previous quarter and nearly identical to the 92,967 pre-foreclosure sales in the third quarter of 2010. Pre-foreclosure sales accounted for nearly 9 percent of all sales, the same as in the second quarter, but down from 12 percent of all sales in the third quarter of 2010.

Pre-foreclosure sales increased more than 30 percent on an annual basis in Michigan (up 68 percent), North Carolina (up 44 percent), Ohio (up 43 percent) and Georgia (up 35 percent). Pre-foreclosure sales outnumbered REO sales in several states in the third quarter, including Colorado, Florida, New Jersey and New York.

Pre-foreclosures, which are often sold via short sale, had an average sales price nationwide of $191,119, a discount of 24 percent below the average sales price of homes not in foreclosure. That was up from the 23 percent discount in the previous quarter and matched the 24 percent discount in the third quarter of 2010. Pre-foreclosures that sold in the third quarter took an average of 318 days to sell after receiving an initial foreclosure notice, up from an average of 245 days in the second quarter and average of 236 days in the third quarter of 2010.

A total of 128,712 bank-owned (REO) homes sold to third parties in the third quarter, down 13 percent from the second quarter and down nearly 8 percent from the third quarter of 2010. REO sales accounted for nearly 12 percent of all sales in the third quarter, down from 13 percent of all sales in the previous quarter and down from nearly 18 percent of all sales in the third quarter of 2010.

Nationally, REOs had an average sales price of $146,437 in the third quarter, a discount of nearly 42 percent below the average sales price of homes not in foreclosure. That matched a 42 percent discount on REOs in the second quarter, but was down from a 45 percent discount in the third quarter of 2010. REOs that sold in the third quarter took an average of 193 days to sell after being foreclosed on, up from 178 days in the second quarter and 161 days in the third quarter of 2010.

Nevada, California and Arizona post highest percentage of foreclosure sales

Foreclosure-related sales accounted for nearly 57 percent of all residential sales in Nevada during the third quarter, the highest percentage of any state. Third parties purchased a total of 13,992 homes in foreclosure or bank owned in Nevada during the third quarter, nearly identical to the 13,858 foreclosure-related sales in the previous quarter, but up 24 percent from the third quarter of 2010.

Third parties purchased a total of 62,583 homes in foreclosure or bank owned in California, representing nearly 44 percent of the state’s total residential property sales in the third quarter — the second highest percentage of any state. Foreclosure-related sales in California decreased nearly 7 percent from the previous quarter but were up 7 percent from the third quarter of 2010.

Arizona foreclosure-related sales accounted for 43 percent of all sales in the state, the third highest percentage of any state. Third parties purchased a total of 21,619 homes in foreclosure or bank owned in Arizona during the quarter, down nearly 14 percent from the previous quarter, but up 19 percent from the third quarter of 2010.

Other states where foreclosure-related sales accounted for at least 20 percent of all sales included Georgia (34 percent), Colorado (26 percent) and Michigan (23 percent).

Due to a nearly 30 percent decrease from the previous year, Florida foreclosure-related sales in the third quarter accounted for 19 percent of all sales in the state — down from 39 percent of all sales in the third quarter of 2010.

Metros with biggest foreclosure discounts

Among metropolitan statistical areas with at least 100 foreclosure-related sales during the third quarter, the Trenton-Ewing, N.J., metro area posted the biggest foreclosure discount. The average price of a foreclosure-related sale in the metro area was $108,302, nearly 68 percent below the average sales price of homes not in foreclosure. Foreclosure-related sales accounted for 8 percent of all sales in the Trenton-Ewing metro area during the third quarter.

Foreclosure-related sales accounted for nearly 13 percent of all sales in the St. Louis metro area during the third quarter and sold at an average price of $80,545, nearly 55 percent below the average price of non-foreclosure sales in the metro area — the second highest foreclosure discount among metro areas with at least 100 foreclosure-related sales.

The Milwaukee metro area documented the third highest foreclosure discount, with an average foreclosure-related sales price of $93,250 — nearly 53 percent below the average sales price of non-foreclosure properties. Foreclosure-related sales accounted for 17 percent of all sales in the Milwaukee metro area in the third quarter.

Other metro areas with a foreclosure discount of at least 50 percent were Springfield, Mass. (52 percent),Saginaw, Mich. (52 percent), New Haven-Milford, Conn. (51 percent), Memphis (51 percent), San Francisco (51 percent), Toledo, Ohio (50 percent), Bridgeport-Stamford-Norwalk, Conn. (50 percent), and Atlanta (50 percent).

Glossary of Terms

Foreclosure (FC) sale: a sale of a property that occurs while the property is actively in some stage of foreclosure (NOD, LIS, NTS, NFS or REO). This includes only sales to third-party buyers or investors not involved in the foreclosure process. It does not include property transfers from the owner in default to the foreclosing bank or lender.

REO sale: a sale of a property that occurs while the property is actively bank owned (REO).

Pre-foreclosure sale: a sale of a property that occurs while the property is actively in default (NOD, LIS) or scheduled for foreclosure auction (NTS, NFS).

Pct. of all sales: total number of Foreclosure Sales (or Pre-Foreclosure Sales or REO Sales) as a percentage of all residential sales during the quarter or year.

Avg. FC sales price: the average sales price of Foreclosure Sales (or Pre-Foreclosure Sales or REO Sales) during the quarter or year, excluding sales with no sales price.

Avg. FC discount: the percentage difference between the average sales price of foreclosure sales and the average sales price of non-foreclosure sales during the quarter or year.

Avg. REO discount: the percentage difference between the average sales price of REO sales and the average sales price of non-foreclosure sales during the quarter or year.

Avg. pre-foreclosure discount: the percentage difference between the average sales price of pre-foreclosure sales and the average sales price of non-foreclosure sales during the quarter or year.

1 in 5 Home Sales Distressed, Foreclosed or Bank Owned, Says RealtyTrac is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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But the new numbers tell only part of the story. What they really demonstrate is that millions of homes remain distressed and that the foreclosure process itself continues to be troubled.

It was late in 2010 that the robo-signing scandal came to light, the practice of signing foreclosure affidavits without actually verifying that the claims were true. The result is that while most foreclosures are justified by non-payment some are not. The judicial system must now figure out how to repair improper foreclosures and — going forward — how to assure that no family is thrown out of their home without cause.

“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” said Brandon Moore, chief executive officer of RealtyTrac. “The lack of clarity regarding many of the documentation and legal issues plaguing the foreclosure industry means that we are continuing to see a highly dysfunctional foreclosure process that is inefficiently dealing with delinquent mortgages — particularly in states with a judicial foreclosure process.

“There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011, though still below the peak of 2010.”

Annual Results

There are two ways to view the market: properties impacted and foreclosure filings. Each measure has value as an index of marketplace activity.

Realtytrac says in 2011 that 1,887,777 U.S. properties faced foreclosure, a 34 percent decrease when compared with 2010. Foreclosure filings themselves — default notices, scheduled auctions and bank repossessions — fell almost 30 percent.

Going back to 2005, the annual foreclosure filing totals from RealtyTrac look like this:

In the past seven years almost 18 million foreclosure filings have been sent out. However, the actual number of impacted homes is substantially lower because borrowers often receive multiple notices for a single property.

December activity hits 49-month low, scheduled auctions up in fourth quarter

Foreclosure filings were reported on 205,024 U.S. properties in December, a decrease of 9 percent from the previous month and down 20 percent from December 2010. December’s total was the lowest monthly total since November 2007 — a 49-month low.

December Default notices (NOD, LIS) decreased 19 percent from the previous month and were down 23 percent from December 2010; Scheduled foreclosure auctions (NTS, NFS) decreased 12 percent from the previous month and were down 24 percent from December 2010; and bank repossessions (REO) increased 10 percent from the previous month but were still down 12 percent from December 2010.

Foreclosure filings were reported on 586,133 U.S. properties in the fourth quarter, a 4 percent decrease from the previous quarter and down 27 percent from the fourth quarter of 2010. Fourth quarter default notices were down 6 percent from the previous quarter and down 22 percent from the fourth quarter of 2010; scheduled foreclosure auctions increased 4 percent from the previous quarter but were still down 32 percent from the fourth quarter of 2010; and REOs decreased 11 percent from the previous quarter and were down 24 percent from the fourth quarter of 2010.

Nevada, Arizona, California post top state foreclosure rates for year

More than 6 percent of Nevada housing units (one in 16) had at least one foreclosure filing in 2011, giving it the nation’s highest state foreclosure rate for the fifth consecutive year despite a 31 percent decrease in foreclosure activity from 2010. Nevada foreclosure activity dropped 35 percent from the third quarter to the fourth quarter, driven primarily by a 70 percent decrease in default notices — the result of a new law (AB 284) that took effect in October requiring lenders to file an additional affidavit before starting the foreclosure process. The new law also increases the penalties for the use of fraudulent documents in foreclosure.

Despite a 28 percent drop in foreclosure activity from November to December — caused largely by a 41 percent drop in scheduled foreclosure auctions — Arizona registered the nation’s second highest state foreclosure rate for the third year in a row, with 4.14 percent of its housing units (one in 24) with at least one foreclosure filing in 2011.

California also experienced a substantial month-over-month drop in initial foreclosure notices in December — default notices there were down 38 percent from the previous month — but the state still registered the nation’s third highest foreclosure rate for all of 2011. One in every 31 California housing units (3.19 percent) had at least one foreclosure filing during the year, down from 4.08 percent in 2010 and 4.75 percent in 2009.

Georgia posted the nation’s fourth highest state foreclosure rate, with 2.71 percent of housing units (one in 37) with at least one foreclosure filing in 2011, and Utah posted the nation’s fifth highest state foreclosure rate, with 2.32 percent of its housing units (one in 43) with a foreclosure filing during the year.

Other states with 2011 foreclosure rates ranking among the nation’s 10 highest wereMichigan (2.21 percent), Florida (2.06 percent), Illinois (1.95 percent), Colorado (1.78 percent), and Idaho (1.77 percent).

Foreclosure processing timelines continue to increase

U.S. properties foreclosed in the fourth quarter took an average of 348 days to complete the foreclosure process, up from 336 days in the third quarter and up from 305 days in the fourth quarter of 2010. The length of the average foreclosure process has increased 24 percent from 281 days in the third quarter of 2010, when lenders began to re-evaluate foreclosure procedures in earnest as the result of the so-called robo-signing controversy.

The average foreclosure process in New York has increased 37 percent during the same time period, and New York properties foreclosed in the fourth quarter took an average of 1,019 days to complete the foreclosure process — the longest of any state.

New Jersey documented the nation’s second longest average foreclosure process, at 964 days, and Florida documented the nation’s third longest average foreclosure process, at 806 days. Foreclosure activity in both these states dropped more than 60 percent from 2010 to 2011. All three states with the longest foreclosure timelines employ the judicial foreclosure process.

Texas continued to register the shortest average foreclosure process of any state, at 90 days — still an increase from 86 days in the third quarter and from 81 days in the fourth quarter of 2010. Other states with average foreclosure process among the nation’s shortest in the fourth quarter were Delaware (106 days), Kentucky (108 days), Virginia(132 days), and Louisiana (134 days).

Top metro foreclosure rates

With 7.38 percent of its housing units (one in 14) with at least one foreclosure filing in 2011, Las Vegas posted the nation’s top foreclosure rate for the year among metropolitan statistical areas with a population of 200,000 or more.

Ten out of the top 20 metro foreclosure rates in 2011 were in California cities, led by Stockton at No. 2, with 5.43 percent of housing units (one in 18) with at least one foreclosure filing during the year. Other California cities in the top 10 were Modesto at No. 3 (5.29 percent), Vallejo-Fairfield at No. 4 (5.20 percent), Riverside-San Bernardino at No. 5 (5.16 percent), Merced at No. 7 (4.40 percent), Bakersfield at No. 9 (4.31 percent), Sacramento at No. 10 (4.17 percent), Fresno at No. 11 (3.82 percent), Visalia at No. 13 (3.67 percent), and Ventura at No. 16 (3.27 percent).

Other metro areas with foreclosure rates ranking among the top 20 were Phoenix at No. 6 (5.10 percent); Reno, Nev., at No. 8 (4.37 percent); Atlanta at No. 12 (3.69 percent); Prescott, Ariz., at No. 14 (3.50 percent); Cape Coral-Fort Myers, Fla., at No. 15 (3.29 percent); Greeley, Colo., at No. 17 (2.97 percent); Detroit at No. 18 (2.94 percent); Boise, Idaho, at No. 19 (2.85 percent); and Salt Lake City at No. 20 (2.81 percent).

All top 20 metro areas showed a decrease in foreclosure activity from 2010, and all butAtlanta posted a decrease from 2009. Atlanta metro foreclosure activity in 2011 was up 2 percent from 2009.

Foreclosure Filings Off Nearly 30%, RealtyTrac is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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The filing decline may seem like good news and surely it’s a welcome relief for many families, however behind the lower numbers is the reality that foreclosure activity has been delayed by the continuing inability of loan servicers to get their paperwork right. The robo-signing scandal which first slowed the market last winter continues to hobble foreclosure activity. This means recovery in the housing market will remain stalled until the inventory of distressed properties is substantially reduced.

Robo-signing — the practice of having clerks sign foreclosure affidavits without actual knowledge of loan ownership or borrower default — has been discovered nationwide. Some of the results include foreclosing on active-duty military personnel and at least one case where a homeowner faced foreclosure — even though the property had been bought for cash and was mortgage-free!

“Despite a seasonal slowdown similar to what we’ve seen in each of the past four years, November’s numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs or short sales sometime early next year,” said James Saccacio, co-founder of RealtyTrac. “Overall foreclosure activity is down 14 percent from a year ago, the smallest annual decrease over the past 12 months, and some bellwether states such as California, Arizona and Massachusetts actually posted year-over-year increases in foreclosure activity in November.

“Scheduled foreclosure auctions reached a nine-month high in November, corresponding to a recent surge in default notices that began back in August,” Saccacio continued. “Many of the new defaults that started the foreclosure process over the past few months are now being scheduled for public foreclosure auction.”

RealtyTrac also provided the following information

Nevada, California, Arizona post top state foreclosure rates

Nevada posted the nation’s highest foreclosure rate for the 59^th straight month in November despite artificially low foreclosure activity caused by a new state law passed in October (AB 284) that alters the foreclosure process in the state. A total of 6,512 Nevada properties received a foreclosure filing in November, up 3 percent from a 45-month low in October, but still down 43 percent from November 2010. One in every 175 Nevada housing units had a foreclosure filing in November, more than three times the national average.

Scheduled trustee’s sales in California hit a 10-month high in November, helping the state maintain the nation’s second highest foreclosure rate: one in every 211 properties with a foreclosure filing during the month. A total of 26,509 trustee’s sales were scheduled in California in November, up 14 percent from November 2010 — the first year-over-year increase in scheduled foreclosure auctions in California since March 2010.

Arizona foreclosure activity increased on a year-over-year basis in November for the first time since October 2010, and the state posted the nation’s third highest foreclosure rate for the fifth month in a row. One in every 256 Arizona properties had a foreclosure filing in November, more than twice the national average.

Substantial monthly increases in foreclosure activity in Utah and Georgia lifted those states’ foreclosure rates into the nation’s top five in November. Utah’s foreclosure rate of one in every 290 housing units with a foreclosure filing ranked No. 4 thanks to a 74 percent monthly increase in foreclosure activity, andGeorgia’s foreclosure rate of one in every 330 housing units with a foreclosure filing ranked No. 5 thanks to a 23 percent monthly increase in foreclosure activity.

Other states with foreclosure rates ranking among the top 10 were Michigan, Florida, Illinois, Ohio and South Carolina. South Carolina cracked the top 10 for the first time since RealtyTrac began issuing its report in 2005.

California, Florida, Michigan document highest foreclosure activity totals

There were a total of 63,689 California properties with foreclosure filings in November, the most of any state and 28 percent of the national total.

Florida foreclosure activity in November decreased 25 percent from a 13-month high in October, but the state still had 24,739 properties with foreclosure filings during the month — the nation’s second highest total.

There were total of 13,777 Michigan properties with foreclosure filings in November, the nation’s third highest state total despite a 14 percent decrease from October.

Illinois documented the fourth highest state foreclosure activity total in November, 12,398 properties with foreclosure filings, and Georgia documented the fifth highest state foreclosure activity total, 12,327 properties with foreclosure filings during the month.

California cities account for nine of top 10 metro foreclosure rates

Nine out of the nation’s 10 highest foreclosure rates among metropolitan areas with a population of 200,000 or more were in California. The only exception was Las Vegas, which ranked No. 6 with one in every 150 housing units with a foreclosure filing in November.

With one in every 120 housing units with a foreclosure filing during the month, Stockton, Calif., posted the nation’s highest metro foreclosure rate for the second month in a row. There were a total of 1,913 Stockton properties with a foreclosure filing in November, up 20 percent from the previous month and up 9 percent from November 2010. The increase in Stockton was driven largely by a 65 percent month-over-month increase in scheduled foreclosure auctions.

The eight other California cities with foreclosure rates ranking among the top 10 all posted double-digit percentage increases in scheduled foreclosure auctions in November, ranging from a 37 percent month-over-month increase in Modesto to a 100 percent month-over-month increase in Fresno.

Cities outside of California and Nevada with foreclosure rates ranking among the nation’s 20 highest metro foreclosure rates included Phoenix at No. 13 (one in every 209 housing units); Salt Lake City at No. 15 (one in every 223 housing units); Detroit at No. 17 (one in every 242 housing units); and Atlanta at No. 18 (one in every 244 housing units).

RealtyTrac: Foreclosure Activity Slumps 14% — But Rise Likely In 2012 is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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Does this change make a lot of sense? No. Is this change the law of the land? Yes.

Let’s see what happened.

Mortgage loan limits were raised substantially in 2008. It was thought that higher limits will would help revive high-cost real estate markets in big cities and along the cost. After three years it became obvious that higher loan limits helped few but created additional risk for lenders and mortgage insurance programs, such as the FHA.

To solve the risk problem, Congress agreed to lower mortgage loan rates as of October 1, 2011. The rates were lowered and the world did not collapse. Indeed, the National Association of Realtors reported that in October existing home sales ROSE despite the lower loan limits.

With everything working well Congress naturally decided to raise FHA and conventional loan limits back to the pre-October 2011 levels. The new legislation passed with huge majorities in the Senate (60-39) and the House (298-121).

However, when the legislation got into a conference committee — representatives from both houses who are supposed to work out any conflicts in the two pieces of legislation — a strange thing happened: FHA conforming loan limits went up for two years and conventional loan limits remained stuck.

Always Smaller

It used to be FHA loans were always smaller than conventional loans for a very simple reason: FHA loans could be no larger than 87 percent of the conventional loan limit. So, if the conventional loan limit was $300,000 the largest FHA mortgage could only be $261,000 in the lower 48 states.

Now we have a situation where FHA mortgages can be bigger in high-cost areas than conventional loans. This is remarkable given how some lenders have worried that the FHA program will be over-utilized or that it allegedly will need billions of dollars in taxpayer bailout money. (See: Will The FHA Go Bankrupt?)

Also, some conservatives object to the FHA because it sells mortgage insurance, something the private sector also sells.

So, where do we stand with loan limits as of November 19, 2011? Here we go:

How Mortgage Limits Vary

There are several types of mortgage loan limits. Generally, most borrowers need to look at the limits for conventional, FHA and VA loans to see how much can be financed with the most-widely originated loans.

If you borrow at or below the conventional loan limit for non-government mortgages, you would have what is generally known as a “conforming” loan. If the amount borrowed is above the conventional loan limit, you would have a “jumbo” loan and face a higher rate because larger loans imply more risk to investors, the folks who buy mortgages.

As well, a “conventional” mortgage can be seen as loans originated from the private sector. FHA and VA mortgages are originated in the private sector but insured through government programs. For specifics, look at FHA and VA mortgage requirements.

Conventional Loans

As of October 1, 2011 the conventional loan limits depend on the county where you’re located. Instead of one national mortgage limit, loan limits depend on; one, whether the property is in a general or high cost area; two, whether the property is within the lower 48 states; and, three, whether the property located in Alaska, Hawaii, Guam and the U.S Virgin Islands.

In general terms, the October 2011 loan limits for a single-family home range from $417,000 to $625,500 in the 48 continental states. Once you know the loan limit for a single-family home in a specific area you can then see the limits for owner-occupied homes with two to four units.

VA Loans

After October 1, 2011 the Department of Veterans Affairs (VA) will use the same loan limits as before. There are no changes. As the VA explains:

“The maximum guaranty for VA guaranteed loans closed October 1, 2011 through December 31, 2011 will remain unchanged. The Veterans’ Benefits Improvement Act of 2008 provided a temporary increase in VA loan limits for loans closed January 1, 2009 through December 31, 2011. Because of this legislation, VA loan limits will remain the same for the remainder of the calendar year. Please note that VA does not have a maximum loan amount. Loan limit refers to the maximum loan a lender could make and still receive a 25% guaranty from VA, assuming the veteran has full entitlement.”

Official loan limits for specific areas range from $417,000 to as much as $1,094,625. To find the VA loan limit for a given area, please use the chart below:

2011 VA County Loan Limits for High-Cost Counties

Some important points about financing for vets, active-duty personnel, and members of the National Guard and Reserve:

• Qualified individuals can purchase homes with one to four units provided that they live in one unit. The veteran must certify as to occupancy.
• In the case of an active-duty veteran who cannot occupy because of his or her status as an active duty member of the armed forces, occupancy by the spouse can satisfy the occupancy requirement.
• Individuals on active duty have strong protections preventing foreclosure under the Servicemembers Civil Relief Act (SCRA).

FHA Loans

The FHA loan program has loan limits for owner-occupied homes under its 203(b) program, the most-common FHA option. The FHA loan limit varies according to whether you live in a typical real estate market, a “high cost” market or you reside in Alaska, Guam, Hawaii, and the Virgin Islands.

As of November 18, 2011 and through 2013 the FHA 203(b) loan limits look like this:

To qualify for the FHA loans above, at least one unit must be owner occupied.

HUD has an online database which shows the latest FHA loan limits by state and county. The system can be reached by going to the FHA Loan Limits Page

Also, HUD has a list of Areas at Ceilings and Above and Areas Between Floor and Ceiling.

FHA-Insured Reverse Mortgages

The loan limits for FHA-insured reverse mortgages (also known as home equity conversion mortgages or HECMs) will remain at $625,500. HUD, in 2010, introduced the HECM Saver program as an alternative to its standard HECM plan. The difference? The Saver program has an up-front insurance fee which is less than the cost of take-out food for four but the amount you can borrow against equity has been reduced. For specifics, speak with attorneys who specialize in elder law and fee-only financial planners.

A Brief History

Loan limits used to be set annually and the same limit applied to all states and all counties in the lower 48 states. The limits were 50 percent higher outside the countinental U.S.

The real estate marketplace began withdrawing from the highs seen in April 2007 and price reductions continued into 2008. Given lower home values, conventional loan limits were supposed to be reduced for 2009. At this point the government stepped in and changed the rules with the Economic Stimulus Act of 2008 (ESA) and the Housing and Economic Recovery Act of 2008 (HERA). These laws gave us the loan limit system we have in place today.

Until September 30, 2011, the Department of State, Foreign Operations, and Related Programs Appropriations Act extended the maximum loan limits first established in 2008.

On November 18, 2011 the President signed H.R. 2112: The Consolidated and Further Continuing Appropriations Act, 2012. This legislation increased the FHA loan limit.

A CAUTION: Because maximum loan limits can change at anytime, visitors to OurBroker.com are advised to speak with local real estate brokers and lenders BEFORE entering the real estate marketplace for the latest mortgage information.

Copyright 2011 OurBroker.com. All Rights Reserved

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FHA Loan Limits Rise, Conventional & VA Mortgage Limits Stick is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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“The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we’ve been in for the past year as lenders corrected foreclosure paperwork and processing problems,” said James Saccacio, chief executive officer of RealtyTrac. “However, recent state court rulings and new state laws keep changing the rules of the foreclosure game on the fly, creating more uncertainty in the housing market and threatening to prolong the road to a robust real estate recovery.”

There is no evidence that the robo-signing scandal which is slowing the foreclosure process will come to a sudden halt anytime soon. For instance,  state regulators are attempting yo work out a universal settlement with lenders and services that reportedly includes compensation of $20 to $25 billion. Such an agreement, however, also has to deal with possible civil and criminal cases that might also be allowed against institutions and individuals in the future. The liability question is a major sticking point.

Foreclosure Activity by Type

Default notices (NOD, LIS) were filed for the first time on a total of 77,733 U.S. properties in October, a 10 percent increase from September, but still down 23 percent from October 2010. Default notices in states using the judicial process (LIS) reached an 11-month high of 39,282 in October, a 16 percent increase from the previous month, but still down 31 percent from October 2010.

Default notices increased more than 25 percent on a month-over-month basis in several states, including Florida (28 percent), Pennsylvania (50 percent) and Indiana (61 percent). Despite the sizable monthly increases, default notices were down on a year-over-year basis in all three of these states.

Foreclosure auctions (NTS, NFS) were scheduled on 85,321 U.S. properties in October, up 8 percent from the previous month, but still down 38 percent from October 2010. Scheduled auctions in states using the judicial foreclosure process (NFS) reached an 11-month high of 25,941 in October, a 22 percent increase from the previous month, but still down 43 percent from October 2010.

Scheduled auctions increased more than 35 percent on a month-over-month basis in several states, including Florida (57 percent), Minnesota (43 percent) and Illinois (38 percent), although scheduled auctions in all three of those states were still down from October 2010.

Lenders repossessed a total of 67,624 U.S. properties (REO) in October, a 4 percent increase from the previous month, but still a 27 percent decrease from October 2010. REO activity increased 40 percent or more on a month-over-month basis in several states, including Michigan (40 percent), Oregon (45 percent), New Jersey (48 percent), and Indiana (73 percent).

Nevada, California, Arizona post top state foreclosure rates

Despite a 34 percent month-over-month drop in foreclosure activity, Nevada posted the nation’s highest state foreclosure rate for the 58^th straight month in October. One in every 180 Nevada housing units had a foreclosure filing during the month, still more than three times the national average despite the drop-off in activity. The month-over-month decrease in Nevada was driven by a 75 percent monthly decrease in new default notices, likely the result of a new law that as of took effect in October and requires foreclosing lenders to sign and record in public records an affidavit with key information about anythe foreclosure on it. The 1,201 new defaults in Nevada in October was the lowest since June2006, a 64-month low.

California default notices increased 17 percent from the previous month to a 13-month high, helping the state post the nation’s second highest foreclosure rate: one in every 243 housing units with a foreclosure filing in October. A total of 29,240 default notices were reported in California in October, a 1 percent increase from October 2010 — the first year-over-year increase in defaults in California since November 2009.

Arizona posted the nation’s third highest state foreclosure rate in October: one in every 259 housing units with a foreclosure filing during the month. Total foreclosure activity inArizona increased nearly 18 percent from the previous month, but was still down 36 percent from October 2010.

A sharp monthly increase in new default notices and scheduled auctions boosted theforeclosure rate in Florida to fourth highest among the states, up from sixth highest in September. A total of 15,234 new default notices were reported in Florida in October, up 28 percent from the previous month and a 12-month high. Scheduled auctions in Floridahit an 11-month high in October, with 10,655 reported during the month — up 57 percent from September.

New default notices in Michigan also reached a 12-month high in October, increasing 13 percent from the previous month, and the state posted the nation’s fifth highest foreclosure rate for the month: one in every 282 housing units with a foreclosure filing.

The top five states in terms of foreclosure rate in October — Nevada, California, Arizona,Florida and Michigan — accounted for 53 percent of the national total for the month.

Other states with foreclosure rates ranking among the top 10 were Georgia, Illinois,Idaho, Oregon and Colorado.

Las Vegas knocked out of No. 1 spot for foreclosure rates among metro areas

After 22 consecutive months with the highest foreclosure rate among metropolitan areas with a population of 200,000 or more, Las Vegas dropped to No. 5 on the list in October thanks to a 36 percent decrease in foreclosure activity from the previous month. The overall decrease in Las Vegas was caused primarily by an 80 percent drop in new default notices from September to October. One in every 162 Las Vegas housing units had a foreclosure filing in October, still more than three times the national average.

With one in every 143 housing units with a foreclosure filing in October, Stockton, Calif., took the top metro foreclosure rate away from Las Vegas. Foreclosure activity in Stocktonincreased 10 percent from the previous month, but was still down nearly 18 percent from October 2010. New defaults in Stockton were up 20 percent from the previous month and up 9 percent from October 2010.

Five other California metro areas had foreclosure rates that ranked among the top 10 inOctober. Modesto was close behind Stockton at No. 2 (one in every 148 housing units with a foreclosure filing), followed by Vallejo-Fairfield at No. 3 (one in every 150 housing units), Riverside-San Bernardino at No. 4 (one in every 155 housing units), Sacramento at No. 7 (one in every 176 housing units), and Merced at No. 9 (one in every 200 housing units).

Other metro areas with foreclosure rates in the top 10 were Saginaw, Mich., at No. 6 (one in every 174 housing units), Cape Coral-Fort Myers, Fla., at No. 8 (one in every 190 housing units), and Orlando, Fla., at No. 10 (one in every 208 housing units).

October Foreclosure Activity Down 31 percent, Says RealtyTrac is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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Note: This material is now out of date. Please go to: FHA Loan Limits Rise, Conventional & VA Mortgage Limits Stick.

Before looking at the numbers let’s make three quick points:

First, the October 1st loan limits will continue only until December 31, 2011. As of January 1, 2012 it’s possible that we could have new loan limits or they might stay the same. At this moment there’s a political fight in Washington brewing over the issue.

Second, most borrowers need far less than the mortgage loan limits for FHA, VA and conventional mortgages. For instance, in a low cost area the maximum conventional loan amount will be $417,000. According to the National Association of Realtors the typical home sold for just $174,000 in July 2011.

Third, the new is the same as the old. The limits which started October 1, 2011 are the same limits we had in place before July 1, 2007.

How Mortgage Limits Vary

There are several types of mortgage loan limits. Generally, most borrowers need to look at the limits for conventional, FHA and VA loans to see how much can be financed with the most-widely originated loans.

If you borrow at or below the conventional loan limit for non-government mortgages, you would have what is generally known as a “conforming” loan. If the amount borrowed is above the conventional loan limit, you would have a “jumbo” loan and face a higher rate because larger loans imply more risk to investors, the folks who buy mortgages.

As well, a “conventional” mortgage can be seen as loans originated from the private sector. FHA and VA mortgages are originated in the private sector but insured through government programs. For specifics, look at FHA and VA mortgage requirements.

Conventional Loans

As of October 1, 2011 the conventional loan limits depend on the county where you’re located. Instead of one national mortgage limit, loan limits depend on; one, whether the property is in a general or high cost area; two, whether the property is within the lower 48 states; and, three, whether the property located in Alaska, Hawaii, Guam and the U.S Virgin Islands.

In general terms, the October 2011 loan limits for a single-family home range from $417,000 to $625,500 in the 48 continental states. Once you know the loan limit for a single-family home in a specific area you can then see the limits for owner-occupied homes with two to four units.

VA Loans

After October 1, 2011 the Department of Veterans Affairs (VA) will use the same loan limits as before. There are no changes. As the VA explains:

“The maximum guaranty for VA guaranteed loans closed October 1, 2011 through December 31, 2011 will remain unchanged. The Veterans’ Benefits Improvement Act of 2008 provided a temporary increase in VA loan limits for loans closed January 1, 2009 through December 31, 2011. Because of this legislation, VA loan limits will remain the same for the remainder of the calendar year. Please note that VA does not have a maximum loan amount. Loan limit refers to the maximum loan a lender could make and still receive a 25% guaranty from VA, assuming the veteran has full entitlement.

Official loan limits for specific areas range from $417,000 to as much as $1,094,625. To find the VA loan limit for a given area, please use the chart below:

2011 VA County Loan Limits for High-Cost Counties

Some important points about financing for vets, active-duty personnel, and members of the National Guard and Reserve:

• Qualified individuals can purchase homes with one to four units provided that they live in one unit. The veteran must certify as to occupancy.
• In the case of an active-duty veteran who cannot occupy because of his or her status as an active duty member of the armed forces, occupancy by the spouse can satisfy the occupancy requirement.
• Individuals on active duty have strong protections preventing foreclosure under the Servicemembers Civil Relief Act (SCRA).

FHA Loans

The FHA loan program has loan limits for owner-occupied homes under its 203(b) program, the most-common FHA option. The FHA loan limit varies according to whether you live in a typical real estate market, a “high cost” market or in Alaska, Guam, Hawaii, and the Virgin Islands.

As of October 1, 2011 the FHA 203(b) loan limits look like this:

To qualify for the FHA loans above, at least one unit must be owner occupied.

HUD has an online database which shows the latest FHA loan limits by state and county. The system can be reached by going to the FHA Loan Limits Page

Also, HUD has a list of Areas at Ceilings and Above and Areas Between Floor and Ceiling.

FHA-Insured Reverse Mortgages

The loan limits for FHA-insured reverse mortgages (also known as home equity conversion mortgages or HECMs) will remain at $625,500. HUD, in 2010, introduced the HECM Saver program as an alternative to its standard HECM plan. The difference? The Saver program has an up-front insurance fee which is less than the cost of take-out food for four but the amount you can borrow against equity has been reduced. For specifics, speak with attorneys who specialize in elder law and fee-only financial planners.

A Brief History

Loan limits used to be set annually and the same limit applied to all states and all counties in the lower 48 states. The limits were 50 percent higher outside the countinental U.S.

The real estate marketplace began withdrawing from the highs seen in April 2007 and price reductions continued into 2008. Given lower home values, conventional loan limits were supposed to be reduced for 2009. At this point the government stepped in and changed the rules with the Economic Stimulus Act of 2008 (ESA) and the Housing and Economic Recovery Act of 2008 (HERA). These laws gave us the loan limit system we have in place today.

Until September 30, 2011, the Department of State, Foreign Operations, and Related Programs Appropriations Act extended the maximum loan limits first established in 2008.

A CAUTION: Because maximum loan limits can change at anytime, visitors to OurBroker.com are advised to speak with local real estate brokers and lenders BEFORE entering the real estate marketplace for the latest mortgage information.

Copyright 2012 OurBroker.com. All Rights Reserved

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New FHA, VA and Conventional Mortgage Loan Limits is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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Such properties can be found. If you’re buying a home in the U.S. the odds are 3 in 1 that the property you purchase will be distressed and selling at discount.

These are the central findings from the latest quarterly report from RealtyTrac, the nation’s leading source of foreclosure listings and data.

Results for the second quarter of 2011 show that:

• Properties in some stage of foreclosure or bank owned accounted for 31 percent of all U.S. residential sales. This is up substantially from the 24 percent seen a year ago.
• Distressed homes typically sold at 32 percent below the average sales price of homes not in foreclosure.
• Buyers purchased 265,087 homes in foreclosure or bank owned nationwide in the second quarter, down 11 percent from the second quarter of 2010. This smaller number of purchases reflects the fact that in many jurisdictions foreclosure actions have slowed because of court decisions, new state rules, and paperwork worries. In effect, the robo-signing scandal continues to impact the marketplace.

“With average prices on distressed real estate trending down and average discounts trending up, this report is clearly good news for well-positioned buyers and investors looking for bargain real estate,” said James Saccacio chief executive officer of RealtyTrac.

“Maybe less evident, however, is the good news in this report for distressed homeowners looking to sell, and even lenders saddled with large portfolios of delinquent loans.

“The jump in pre-foreclosure sales volume coupled with bigger discounts on pre-foreclosures and a shorter average time to sell pre-foreclosures all point to a housing market that is starting to focus on more efficiently clearing distressed inventory through more streamlined short sales — at least in some areas,” Saccacio continued.

“This gives distressed homeowners who do not qualify for loan modification or refinancing — or who are not interested in those options and want to sell — a better chance of completing a short sale to avoid foreclosure. Streamlined short sales also give lenders the opportunity to more pre-emptively purge non-performing loans from their portfolios and avoid the long, costly and increasingly messy process of foreclosure and the subsequent sale of an REO — which may end up selling for a lower price than it would have as a pre-foreclosure short sale and in the meantime further stresses already overloaded REO departments.”

Also from the RealtyTrac report:

Metros with biggest foreclosure discounts

Among metropolitan statistical areas with at least 100 foreclosure-related sales during the second quarter, the Louisville, Ky., metro area posted the biggest foreclosure discount. Third parties purchased a total of 527 homes in foreclosure or bank owned in the metro area during the quarter at an average sales price of $85,211 — 54 percent below the average sales price of non-foreclosure homes.

The Sebastian-Vero Beach metro area in Florida documented an average foreclosure-related sales price of $97,175, a 53 percent discount, and the Saginaw, Mich., metro area documented an average foreclosure-related sales price of $48,977, also a 53 percent discount.

Other metro areas with a foreclosure discount of 50 percent or more were Milwaukee (51 percent), Pittsburgh (51 percent), and Kalamazoo, Mich. (50 percent).

Pre-foreclosure sales jump 19 percent, bank-owned sales flat

A total of 102,407 pre-foreclosure homes — in default or scheduled for auction — sold to third parties in the second quarter, an increase of 19 percent from the previous quarter but still down 12 percent from the second quarter of 2010. Pre-foreclosure sales accounted for 12 percent of all sales, the same percentage as in the first quarter but up from 10 percent of all sales in the second quarter of 2010.

Some of the states with the biggest quarterly increases in pre-foreclosure home sales included Nevada with a 43 percent increase, Washington with a 39 percent increase, California with a 38 percent increase, and Texas with a 34 percent increase.

Pre-foreclosures, which are often sold via short sale, had an average sales price nationwide of $192,129, a discount of 21 percent below the average sales price of non-foreclosure homes. That discount was up from a 17 percent discount in the previous quarter and a 14 percent discount in the second quarter of 2010. Pre-foreclosures sold in the second quarter took an average of 245 days to sell after receiving the initial foreclosure notice, down from an average of 256 days in the first quarter — following three straight quarters of increases in the average time to sell pre-foreclosures.

A total of 162,680 bank-owned (REO) homes sold to third parties in the second quarter, virtually unchanged from the 162,900 in the first quarter and down 10 percent from the second quarter of 2010. REO sales accounted for 19 percent of all sales in the second quarter, down from 23 percent of all sales in the first quarter but up from 15 percent of all sales in the second quarter of 2010.

Nationally, REOs had an average sales price of $145,211, a discount of nearly 40 percent below the average sales price of non-foreclosure homes. This is an increase from a 36 percent discount in the previous quarter and a 34 percent discount in the second quarter of 2010. REOs that sold in the second quarter took an average of 178 days to sell after being foreclosed on, up from 176 days in the first quarter and up from 164 days in the second quarter of 2010.

Nevada, Arizona, California post highest percentage of foreclosure sales

Foreclosure-related sales accounted for 65 percent of all residential sales in Nevada during the second quarter, the highest percentage of any state. Third parties purchased a total of 15,685 homes in foreclosure or bank owned in Nevada during the second quarter, up 24 percent from the first quarter and up 31 percent from the second quarter of 2010.

Arizona foreclosure-related sales also increased on a quarterly and annual basis, accounting for 57 percent of all sales in the state during the second quarter — the second highest percentage of any state.

Third parties purchased a total of 69,897 homes in foreclosure or bank owned in California during the second quarter, 51 percent of all sales in the state. Foreclosure-related sales in California increased 12 percent from the first quarter but were virtually unchanged from the second quarter of 2010.

Michigan foreclosure-related sales accounted for 41 percent of all sales in the state during the second quarter, the fourth highest percentage among the states, and Georgia foreclosure-related sales accounted for 38 percent of all sales in the state during the second quarter, the fifth highest percentage.

Other states where foreclosure-related sales accounted for at least 30 percent of all sales were Colorado (36 percent), Florida (35 percent), Illinois (34 percent), Oregon (33 percent), and Idaho (30 percent).

Distressed Homes Selling at 32% Discount is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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Okay, there’s relatively good news on the foreclosure front.

Er, well, foreclosure activity is “better” in the sense of current numbers but we should be awfully concerned with what the numbers do not say.

RealtyTrac reports that foreclosure activity in the first six months fell 25 percent when compared with 2010. Still, 1.17 million homes received foreclosure filings of some sort — default notices, auction sale notices and bank repossessions. One in every 111 homes now faces foreclosure.

Looked at quarterly, the second quarter numbers were down 32 percent, the lowest level since the fourth quarter of 2007.

On a monthly basis, June foreclosure activity was down 29 percent from 2010. There were 222,740 foreclosure actions in June.

“It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market,” said James J. Saccacio, chief executive officer of RealtyTrac. “Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn’t appear to be the case.

“Processing and procedural delays are pushing foreclosures further and further out — we estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later. This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number.”

Analysis

In effect, the foreclosure process is stuck in first, lurching ahead, longing for the robo-signing days when owners could be tossed out of their homes with greater speed, even if foreclosure claims were iffy or required paperwork was incorrect, missing or nonexistent.

In effect, we’re postponing foreclosures for a future day — assuming the paperwork can ever be corrected and brought up to legal standards so that foreclosures will be accurate, both lenders and owners will be protected, and property records will thus be clear and unclouded.

In Oregon, lenders have tried to resolve the paperwork mess by simply changing the law. Brent Hunsberger, writing for the Oregonian, reports that the Oregon House Judiciary Committee defeated legislation sought by loan servicers, title companies and credit unions that would have “relieved lenders of ensuring a property’s ownership history is properly recorded in public records before foreclosing outside a courtroom ” (See: MERS foreclosure amendment dies in Oregon House committee, June 1, 2011)

The RealtyTrac study also provides additional information:

Nevada, Arizona, California post top state foreclosure rates

Nearly 5 percent of all Nevada housing units (one in 21) received at least one foreclosure filing in the first half of 2011, giving Nevada the nation’s highest foreclosure rate during the six-month period despite continued decreases in foreclosure activity. A total of 53,217 Nevada properties received a foreclosure filing from January to June, a decrease of 17 percent from both the previous six months as well as from the first six months of 2010. Overall Nevada foreclosure activity decreased on a year-over-year basis for the fifth straight month in June despite a 19 percent year-over-year spike in REO activity.

Arizona registered the nation’s second highest state foreclosure rate in the first half of 2010, with 2.82 percent of its housing units (one in 36) receiving a foreclosure filing, and California registered the nation’s third highest state foreclosure rate, with 1.96 percent of its housing units (one in 51) receiving a foreclosure filing during the six months. Other states with foreclosure rates ranking among the nation’s 10 highest were Utah (1.65 percent), Georgia (1.50 percent), Idaho (1.49 ercent), Michigan (1.34 percent), Florida (1.28 percent), Colorado (1.19 percent), and Illinois (1.15 percent).

California, Florida, Arizona post highest foreclosure totals

A total of 263,500 California properties received a foreclosure filing in the first half of 2011, the nation’s highest total but down 13 percent from the previous six months and down nearly 23 percent from the first half of 2010.  California foreclosure activity decreased on a year-over-year basis for the 19th straight month in June, but default notices and REOs increased on a month-over-month basis, continuing a sawtooth pattern in the monthly numbers.

With 113,641 properties receiving a foreclosure filing in the first six months of 2011, Florida documented the second highest state total despite a nearly 55 percent decrease in foreclosure activity from the previous six months and a nearly 59 percent decrease in foreclosure activity from the first half of 2010. Florida foreclosure activity decreased on a year-over-year basis for the eighth straight month in June, but default notices spiked 44 percent from May and scheduled auctions jumped 17 percent from May.

Arizona’s 77,525 properties with foreclosure filings in the first six months of 2011 was the third highest state total. The state’s foreclosure activity decreased nearly 7 percent from the previous six months and was down 15 percent from the first half of 2010. Other states with first-half totals among the 10 highest in the country were Michigan (61,005), Georgia (60,870), Illinois (60,636), 
Texas(55,442), Nevada (53,217), Ohio (44,419), and Colorado (25,744).

Foreclosure Process Timelines and Days to Sell

U.S. properties foreclosed in the second quarter were in the foreclosure process an average of 318 days from the initial foreclosure notice to the completed foreclosure, up from a revised 298 days in the first quarter and up from 277 days in the second quarter of 2010.

The foreclosure process took the longest in New York, at 966 days on average for properties foreclosed in the second quarter, followed by New Jersey at 944 days and Florida at 676 days. Texas posted the shortest foreclosure timeline, at 92 days for properties foreclosed in the second quarter, followed by Virginia at 106 days.

U.S. REO properties that sold in the second quarter took an average of 178 days to sell from the time they were foreclosed, up slightly from 176 days in the first quarter and up from 164 days in the second quarter of 2010. REO properties took the longest to sell in New York, at 309 days, followed by New Jersey at 285 days and Minnesota at 268 days.

U.S. properties in the foreclosure process that sold in second quarter (typically short sales) took an average of 213 days to sell from the time they entered the foreclosure process, down from 228 days in the first quarter but up from 195 days in the second quarter of 2010.

RealtyTrac — Foreclosure Filings Dive 29%. Is Housing Back? is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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The catch? Well there are a few of them.

First, lower is a relative term. The reality is that 214,927 U.S. properties faced foreclosure notices of some kind. On an historic basis that’s a very big number.

Second, foreclosure activity is not down because of the sudden onset of better economic times. Instead, it’s apparent that the paperwork boondoggle, which became apparent in late 2010, continues to haunt lenders.

“Foreclosure processing delays continue to mask the true face of the foreclosure situation, although there were some clues in the May numbers of what lies behind that mask,” said James J. Saccacio, chief executive officer of RealtyTrac.

Foreclosures are being deferred even when homeowners are not making payments because lenders increasingly need to prove that they actually own loans when taking homeowners to court. Why? In one case that has become the poster child for questionable paperwork, a Florida couple, Warren and Maureen Nyerges, faced foreclosure claims even though they had paid cash for their home — that’s right, there was NO mortgage according to Florida station WINK-TV.

In addition, there’s the robo-signing scandal — an unknown number of sworn foreclosure affidavits which were completed without a full check of the data they were supposed to confirm.

Here’s more from RealtyTrac:

Foreclosure Activity by Type

Default notices (NOD, LIS) were filed for the first time on a total of 58,797 U.S. properties in May, a 7 percent decrease from the previous month and a 39 percent decrease from May 2010. May’s total was the lowest number of monthly default notices since December 2006 — a 53-month low.

Foreclosure auctions (NTS, NFS) were scheduled for 89,251 U.S. properties in May, an increase of 3 percent from the 31-month low hit in April, but still down 33 percent from May 2010. May’s monthly increase followed eight straight monthly decreases in scheduled foreclosure auctions.

Bank repossessions (REOs) decreased on a monthly basis for the second straight month in May, with 66,879 U.S. properties repossessed by lenders during the month — a 4 percent decrease from the previous month and a 29 percent decrease from May 2010. Since the so-called robo-signing controversy came to light in October 2010, REO activity has followed a rollercoaster pattern, with five monthly decreases and three monthly increases.

Non-judicial foreclosure activity accounts for two-thirds of national total

A total of 141,348 properties received foreclosure filings in states where lenders primarily use the non-judicial foreclosure process — nearly two-thirds of the national total. Overall foreclosure activity in non-judicial foreclosure states was down 3 percent from April and down 25 percent from May 2010.

Scheduled auctions in non-judicial foreclosure states increased 2 percent on a month-over-month basis, led by a 16 percent increase in California and 10 percent increases in Texas, Virginia and Michigan.

Although REO activity in non-judicial foreclosure states overall was down 6 percent from the previous month, some non-judicial foreclosure states posted substantial month-over-month increases in REO activity, including Georgia, with a 79 percent increase, Virginia, with a 36 percent increase, and Michigan, with a 19 percent increase.

A total of 73,579 properties received foreclosure filings in states where lenders primarily use the judicial foreclosure process, virtually unchanged from the previous month but down 45 percent from May 2010.

Scheduled auctions increased 6 percent on a month-over-month basis in judicial foreclosure states, with Oklahoma posting an 86 percent increase, Maryland posting a 56 percent increase and Illinois posting a 47 percent increase.

REO activity in judicial foreclosure states increased 1 percent on a month-over-month basis, with New York posting a 97 percent increase, New Jersey posting a 21 percent increase, Wisconsin posting a 20 percent increase and Indiana posting an 18 percent increase.

Nevada, Arizona, California post top state foreclosure rates

Nevada posted the nation’s highest state foreclosure rate for the 53^rd straight month in May, with one in every 103 housing units receiving a foreclosure filing during the month. Nevada REOs in May were down 21 percent from the record high hit in April, while default notices (NOD) increased 8 percent from the previous month and scheduled auctions (NTS) decreased 1 percent from the previous month.

Scheduled auctions in Arizona (NTS) increased 4 percent in May from April, helping the state maintain the nation’s second highest foreclosure rate — one in every 210 Arizona housing units received a foreclosure filing in May. Arizona REO activity in May was down 8 percent from the previous month but virtually unchanged from May 2010.

California posted the nation’s third highest state foreclosure rate, with one in every 259 housing units receiving a foreclosure filing during the month. Scheduled auctions in California (NTS) increased 16 percent from the previous month, while default notices (NOD) were down 16 percent to a 31-month low and REOs decreased 25 percent from the previous month.

Michigan posted the nation’s fourth highest state foreclosure rate in May, with one in every 311 housing units receiving a foreclosure filing during the month, and Utah posted the nation’s fifth highest state foreclosure rate, with one in every 365 housing units receiving a foreclosure filing during the month.

Other states with foreclosure rates ranking among the top 10 were Georgia, Idaho, Florida, Illinois and Colorado.

Five states account for more than half of U.S. foreclosure activity

Five states accounted for 51 percent of U.S. foreclosure activity in May, led by California, where 51,906 properties received a foreclosure filing during the month.

A total of 19,192 Florida properties received a foreclosing filing in May, the second highest state total despite a 62 percent decrease from May 2010. Florida initial default notices (LIS) decreased 10 percent from the previous month, but scheduled auctions (NFS) and REOs in Florida both increased on a monthly basis.

A total of 14,614 Michigan properties received a foreclosure filing in May, the third highest state total, followed by Arizona, with 13,122 properties receiving a foreclosure filing during the month, and Nevada, with 11,039 properties receiving a foreclosure filing during the month.

Other states with foreclosure activity totals among the nation’s 10 highest in May were Illinois (10,574), Georgia (10,503), Texas (9,055), Ohio (8,379), and Wisconsin (4,660).

Rust Belt city breaks into Top 10 metro foreclosure rates dominated by Sun Belt

Las Vegas continued to post the nation’s highest foreclosure rate among metropolitan areas with a population of 200,000 or more, with one in every 89 housing units receiving a foreclosure filing in May — more than six times the national average.

The Reno-Sparks metro area in Nevada also continued to post a foreclosure rate among the top 10 highest, at No. 5 with one in every 158 housing units receiving a foreclosure filing in May.

Six California cities posted foreclosure rates in the top 10, led by Stockton at No. 2 (one in every 139 housing units receiving a foreclosure filing during the month), Vallejo-Fairfield at No. 3 (one in every 140 housing units), and Modesto at No. 4 (one in every 154 housing units). Other California cities in the top 10 were Bakersfield at No. 7 (one in every 169 housing units), Riverside-San Bernardino-Ontario at No. 8 (also one in every 169 housing units), and Merced at No. 10 (one in every 193 housing units).

With one in every 165 housing units receiving a foreclosure filing in May, the Phoenix-Mesa-Scottsdale metro area in Arizona posted the nation’s sixth highest metro foreclosure rate.

The Flint, Mich., metro area broke into the top 10 thanks to a 106 percent month-over-month increase in foreclosure activity — although the metro area’s foreclosure activity was still down slightly from May 2010. One in every 182 Flint housing units received a foreclosure filing in May, ranking No. 9 among the nation’s metro areas.

RealtyTrac: Foreclosure Activity Down For Eighth Month is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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RealtyTrac reported that foreclosure filings for February — default notices, scheduled auctions and bank repossessions — were reported for 225,101 U.S. properties in February, a 14 percent decrease from the previous month and a 27 percent decrease from February 2010.

The catch is that the February numbers are artificially low. They would be very much larger if the weather was better, February had more days and the system was not bogged down with claims of false and faked paperwork. The paperwork issues — the so-called robo-signing scandal — have slowed foreclosure activity in states across the country.

It is apparent that large numbers of foreclosure affidavits — sworn court documents — were signed by individuals who did not actually read the contents and thus cannot verify that the information contained in the documents is correct. Also, it appears that large numbers of documents were “signed” in the name of individual attorneys rather than the attorneys themselves.

“We expect to see the numbers bounce back,” said James J. Saccacio, chief executive officer of RealtyTrac, “but that will likely take several months. And monthly volume may never return to its peak in March 2010 of more than 367,000 properties receiving foreclosure filings.”

RealtyTrac also reports the following data for February:

A total of 63,165 U.S. properties received default notices (NOD, LIS) for the first time in February, a 16 percent decrease from the previous month and a 41 percent decrease from February 2010. Default notices hit a 48-month low in February and were 55 percent below a peak of 142,064 in April 2009.

In states with a judicial foreclosure process (LIS), default notices decreased 19 percent from January and were down 48 percent from February 2010. In states with a non-judicial foreclosure process (NOD), default notices decreased 13 percent from January and were down 31 percent from February 2010.

Foreclosure auctions (NTS, NFS) were scheduled for the first time on a total of 97,293 U.S. properties in February, a 10 percent decrease from the previous month and a 21 percent decrease from February 2010. Scheduled foreclosure auctions hit a 27-month low in February and were 38 percent below a peak of 158,105 in March 2010.

Scheduled judicial foreclosure auctions (NFS) decreased 7 percent from January and were down 49 percent from February 2010. Scheduled non-judicial foreclosure auctions (NTS) decreased 11 percent from the previous month and were down 7 percent from February 2010.

Lenders foreclosed on 64,643 U.S. properties in February, down 17 percent from January and down 18 percent from February 2010. Bank repossessions (REO) hit a 22-month low in February and were down 37 percent from their peak of 102,134 in September 2010.

Bank repossessions in states with a judicial foreclosure process decreased 24 percent from January and were down 35 percent from February 2010, while bank repossessions in states with a non-judicial foreclosure process decreased 14 percent from January and were down 8 percent from February 2010.

Nevada, Arizona, California post top state foreclosure rates

Nevada posted the nation’s highest state foreclosure rate for the 50^th straight month in February — one in every 119 Nevada housing units had a foreclosure filing during the month — despite a 22 percent decrease in foreclosure activity from the previous month. There were a total of 9,553 Nevada properties with a foreclosure filing in February, down 13 percent from February 2010.

Arizona posted the nation’s second highest state foreclosure rate, one in every 178 housing units with a foreclosure filing, andCalifornia posted the nation’s third highest state foreclosure rate, one in every 239 housing units with a foreclosure filing.

One in every 273 Utah housing units had a foreclosure filing in February, the nation’s fourth highest foreclosure rate, and one in every 298 Idaho housing units had a foreclosure filing during the month, the nation’s fifth highest foreclosure rate.

Other states with foreclosure rates ranking among the top 10 in February were Georgia, Michigan, Florida, Colorado and Hawaii.

10 states account for more than 70 percent of national total

With 56,229 properties with a foreclosure filing, California accounted for 25 percent of the national total in February. The state’s foreclosure activity decreased 16 percent from January — following two straight monthly increases in foreclosure activity — and was down 18 percent from February 2010 — the 15^th straight month where the state registered a year-over-year decrease in foreclosure activity.

Florida foreclosure activity decreased 13 percent from January and was down 65 percent from February 2010, but the state’s 18,760 properties with a foreclosure filing was still the nation’s second highest for the month. Florida foreclosure activity hit a 46-month low in February and was down 71 percent from a peak of 64,588 in April 2009.

Arizona documented the nation’s third highest state total in February, 15,485 properties with a foreclosure filing. Arizona foreclosure activity decreased 2 percent from the previous month and was down 7 percent from February 2010.

Michigan foreclosure activity decreased 16 percent from January and was down 30 percent from February 2010, but the state’s 14,003 properties with a foreclosure filing was still the nation’s fourth highest.

Georgia posted the fifth highest state total, tallying 12,807 properties with a foreclosure filing in February — up fractionally from the previous month and up 5 percent from February 2010.

Other states with foreclosure activity totals among the nation’s 10 highest in February were Texas (11,562), Illinois (9,592), Nevada (9,553), Ohio (8,598) and Wisconsin (4,478).

Florida cities absent from top 20 metro foreclosure rates for second straight month

For the second month in a row, no Florida cities posted foreclosure rates in the top 20 among U.S. metropolitan areas with a population of 200,000 or more. That was in contrast to 2010, when the state accounted for nine of the top 20 metro foreclosure rates.

Some of the metro areas filling the spots vacated by Florida cities included Racine, Wis., at No. 12, Salt Lake City at No. 16, Atlanta-Sandy Springs-Marietta at No. 17, and Detroit-Warren-Livonia at No. 18.

Nevada, California and Arizona cities continued to dominate the top 20, accounting for all top 10 metro foreclosure rates and 15 of the top 20 metro foreclosure rates in February. The Las Vegas-Paradise, Nev., metro area continued to register the nation’s highest metro foreclosure rate, one in every 106 housing units with a foreclosure filing in February.

The other Nevada metro area in the top 10 was Reno-Sparks, at No. 9 with one in every 184 housing units with a foreclosure filing during the month.

Seven California metro areas posted foreclosure rates in the top 10, led by Modesto at No. 2, with one in every 140 housing units with a foreclosure filing, and Stockton at No. 3, with one in every 141 housing units with a foreclosure filing. Also in the top 10 were Riverside-San Bernardino-Ontario at No. 5 (one in 144 housing units); Vallejo-Fairfield at No. 6 (one in 147 housing units); Merced at No. 7 (one in 153 housing units); Bakersfield at No. 8 (one in 166 housing units); and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 189 housing units).

The Phoenix-Mesa-Scottsdale metro foreclosure rate ranked fourth highest: one in every 143 metro housing units had a foreclosure filing in February.

Foreclosure filings fall, hit false bottom is a post from: OurBroker.com -- Refinance, Home Mortgage Loans & Rates, Home Equity Loan

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