Foreclosure

RealtyTrac recently integrated the property-rating system HomeScore on nearly 2 million foreclosure and for-sale properties on its Web site. Created by SmartZip Analytics, HomeScore is designed to allow users to pinpoint properties with the best potential for appreciation over time. The higher the HomeScore rating, the greater the home's investment potential. While properties scored above 50 are expected to outperform the market, those scored below 50 are expected to underperform.

Delinquencies and losses on commercial real estate loan collateralized debt obligations (CREL CDOs) increased notably in April, according to the latest U.S. CREL CDO index results from Fitch Ratings. Asset managers reported approximately $164 million in realized losses from the disposal of defaulted and credit-impaired assets, which is substantially higher than March's total of $73 million. The agency says many of the realized losses stemmed from foreclosure or deed-in-lieu actions that wiped out subordinate positions.

The Michigan Court of Appeals has ruled that MERS does not meet the requirements under state statute to foreclose by advertisement because the company does not own any interest in the debt. The judgment does not apply to judicial foreclosures conducted by MERS, but observers warn the decision could void thousands of foreclosures in the state, including properties that have already been sold to new buyers. Local reports say title companies are canceling closings on some bank-owned homes in light of the ruling.

President Obama has made a public call for mortgage lenders and servicers to provide struggling homeowners with longer-term modifications and principal reductions when it fits the situation. Referring to the bailout of the banking system, which the president described as probably the most unpopular thing the government has ever done, Obama said American taxpayers were there for the banks when they got into trouble, and now it's time for the banks to be there for the American people.

Nearly twice as many underwater borrowers think it is okay to walk away from their mortgage than harbored this sentiment a year ago, according to the results of a survey conducted by Fannie Mae. A separate academia study, however, found that the number of cases in which the homeowner defaulted even though they cold afford their payments - at least as perceived by their neighbors - appears to be trending down. The researchers also asked about respondents' feelings on robo-signing penalties.

Mortgage servicing in general, and default servicing in particular, is in for its own form of modification. Based on testimony given before a Senate subcommittee Thursday and comments from the senators themselves, national mortgage servicing standards are in the cards. The topic has taken center stage in light of recent documentation errors related to foreclosures, and a growing number of industry analysts and mortgage banking groups are voicing their support.

The city of Chicago is working to alleviate the impact of vacant foreclosure properties on its neighborhoods with a new program that has garnered participation from major mortgage servicers and local law firms. Bank of America has agreed to identify and register with the city 150 vacant properties in default under the Cook County ""Vacant and Abandoned Building Court Call."" The program will move empty homes through the foreclosure process more quickly in order to return them to viable housing or make way for new uses of the land.

New data from RealtyTrac shows foreclosure activity in the U.S. has fallen to its lowest level in 40 months. Filings were reported on 219,258 properties in April, down 34 percent from a year earlier. While the numbers may be an attention-grabber, RealtyTrac says they don't necessarily mean we've turned the corner since the slowdown can be traced to two specific areas of delays in processing. The curb in activity wasn't entirely widespread. REOs hit a new record high in Nevada, while defaults spiked in Massachusetts and New Jersey.

One out of every 17 homes within Ohio's three largest cities has been reported as a foreclosure since the beginning of 2009. That's a rate equal to more than one home falling into foreclosure for every city block, according to the nonprofit community advocacy group National People's Action. After a 27-month long study, the organization found that since 2009, foreclosures have resulted in an estimated total loss of $1.6 billion in property values for homeowners in Cincinnati, Cleveland, and Columbus, and cost local governments in those cities nearly $30 million.

The New Jersey HomeKeeper Program officially launched this week to provide payment assistance to homeowners in the state who are at risk of losing their homes to foreclosure as a direct result of unemployment or underemployment. The zero percent interest rate loans offered through the program will be forgiven in full as long as the homeowner remains in the home for at least 10 years. The latest figures from the state reveal New Jersey's unemployment rate rose to 9.3 percent in March.