Foreclosure

Massachusetts foreclosure deeds increased nearly 80 percent in July from the same month in 2009, according to a new study by the Boston-based research firm the Warren Group. However, foreclosure petitions, the first step in the foreclosure process in Massachusetts, decreased more than 20 percent. The Bay State is on track to outpace foreclosure activity from the past two years. Already completed foreclosures year-to-date are 60 percent above the tally during the same period of 2009.

The Fisher Law Group, PLLC and M. Richards Epps, PC have created a partnership whereby Epps, who is based in Virginia Beach, Virginia, will serve as of counsel to the Fisher firm, which is headquartered in Upper Marlboro, Maryland. Epps will locally manage Virginia court appearances for all court and litigated matters regarding Fisher's Virginia foreclosure and bankruptcy cases.

In the first quarter of 2010, state housing finance agencies' (HFAs) delinquencies declined for the first time since overall performance of loans began to deteriorate in the second quarter of 2008, according to Standard & Poor's. But the agency's analysts say the slowdown could be only temporary. S&P's study shows delinquency rates for HFA loans remain high relative to a year ago. However, the percentage of HFA loans at least 60 days past due or in foreclosure decreased to 6.05 percent in Q1, down from 6.57 percent in the fourth quarter of 2009.

Neighborhoods across the country are riddled with empty bank-owned homes and unoccupied foreclosures that erode neighboring property values and open the door for blight and criminal activity. The nation's glut of vacant REOs took center stage in Washington Wednesday. HUD announced a new nationwide REO ""First Look"" program, in partnership with the nation's largest mortgage lenders, and it was the first of a two-day Federal Reserve summit to examine the community impacts of foreclosed and vacant properties.

The industry has completed 1.13 million permanent loan modifications for at-risk homeowners so far in 2010, according to data released Wednesday by HOPE NOW. The organization also reports that since January of this year, mortgage delinquencies of 60 days or more past due have dropped 20 percent, but the data supports the assumption that the decline is simply the byproduct of an increase in foreclosures. July's foreclosure starts outpaced loan mods during the month by nearly 90 percent.

As an alternative to its registry of foreclosed properties and property preservation contacts for vacant properties, the city of Los Angeles is adopting the MERS System, an electronic loan registry that acts as a nominee in county land records on behalf of lenders and servicers. MERS members can use the system to track both residential and commercial properties. Users tout the benefits of the technology as saving code enforcement officials and municipalities both time and money to ensure vacant properties are maintained.

Texas Attorney General Greg Abbott says American Home Mortgage Servicing is using illegal debt collection practices and misleading struggling homeowners, resulting in foreclosure for some borrowers. Abbott brought formal charges against the company on Monday. State investigators allege that the mortgage servicer's agents used aggressive and unlawful tactics to collect payments and then in some cases, intentionally failed to properly credit homeowners.

Moody's Investors Service says it expects home price appreciation to be ""soft"" for the next couple of years. The company says there were 1.8 million more vacant homes sitting on the market than what is considered the norm at the end of the second quarter, reflecting a rise in the number of homes that lenders are repossessing. According to Moody's, it will not be until 2012 that demand and supply conditions are balanced enough to drive price appreciation that matches the pace of inflation.

The Mortgage Bankers Association (MBA) offered the industry a ray of hope when it reported Thursday that foreclosure starts were down nearly 10 percent in Q2, but the brightness quickly faded when Lender Processing Services (LPS) released its own dataset. MBA's numbers were based on data through the end of June. LPS reports that by the end of July, foreclosure starts had jumped back up by 24.5 percent. It's the fourth highest level ever recorded by the company.

The percentage of home loans 90 or more days past due held by the nation's two largest mortgage companies has declined yet again. Fannie Mae's single-family serious delinquency rate has fallen to 4.99 percent. It's the fourth straight month that Fannie has reported a decline. Freddie Mac's serious delinquencies dropped to 3.89 percent, the fourth decrease in five months. The reciprocated declines seem a welcome herald, but researchers say they're merely the consequence of an increase in GSE foreclosures.