Foreclosure

Foreclosure activity in California was again mixed last month, according to ForeclosureRadar. The company's latest report shows that foreclosure filings and cancellations dropped in July after rising the month before, while foreclosure sales rose. But even with the wrong indicators heading upward and a large ""shadow inventory"" of properties in default, ForeclosureRadar says it doesn't expect the foreclosure picture in the Golden State to worsen any time soon, namely because it currently takes lenders 226 days to complete the process.

Struggling Atlanta homeowners with Fannie Mae-owned home loans can now take advantage of the company's new mortgage help center. The third facility in a series of planned, nationwide mortgage help centers, the Atlanta center provides counseling and other services for borrowers to help them avoid foreclosure. Both English- and Spanish-speaking housing counselors will be on hand to explain options to homeowners and help finalize documentation for modifications or other loan workouts.

More than one million homeowners have received counseling through the National Foreclosure Mitigation Counseling program since its launch in January 2008. The program, which is administered by NeighborWorks America, has been appropriated $475 million in federal funding to provide free, community-based counseling to distressed homeowners. Lawmakers are pushing for another $113 million to be made available for the program through fiscal year 2011.

When the Treasury Department released its latest progress report for the Home Affordable Modification Program (HAMP) in late July, it showed the redault rate for permanently modified loans to be around the two percent mark. An outcry from analysts - and some of you discerning DSnews.com readers - immediately followed, questioning the validity of the government's math. Last week, the Treasury quietly corrected its redefault assessment. The revised numbers are between 6 and 10 percent.

RealtyTrac reported Thursday that foreclosure filings increased four percent in July -- an abrupt departure from the previous three months, which saw consecutive declines in foreclosure activity. However, even with filings on a total of 325,229 properties during the month, July's numbers represented a 10 percent decrease compared to July 2009. It was the 17th consecutive month with a foreclosure activity total exceeding 300,000. One in every 397 U.S. homes received a filing in July.

The Obama administration said Wednesday that it will provide additional support to help unemployed homeowners through two targeted initiatives. The Treasury will make another $2 billion available to housing finance agencies in 17 states and the District of Columbia to implement local programs for unemployed homeowners. HUD is also launching a $1 billion program to provide up to 24 months of assistance to homeowners who are at risk of foreclosure because of lost income.

This past week Indiana Attorney General Greg Zoeller filed lawsuits against three for-profit foreclosure companies, claiming they have not complied with the state's statutes by demanding money up-front for services not yet performed. Zoeller has formed a Homeowner Protection Unit (HPU) meant to track down foreclosure consultant companies that may be operating illegally in Indiana or are failing to comply with Indiana's new laws meant to protect consumers.

Could the U.S. economy slip back into the throes of the recession that nearly crippled the nation's financial system and protracted any semblance of a housing recovery? The analysts at Moody's think so. They say the odds of a near-term double-dip recession have increased to one in four. And they warn that if the economy sinks back into recession, housing activity will follow. If such a scenario were to play out, Moody's says home prices are likely to fall by another 20 percent before they stabilize in early 2012.

A former Fannie Mae VP has gone public with accusations that the nation's largest mortgage company mishandled its stewardship of the Home Affordable Modification Program (HAMP). The whistleblower claims that HAMP was impeded by intentional delays and slip-ups because Fannie executives placed their institution's short-term financial interests above helping homeowners avoid foreclosure. A spokesperson for Fannie Mae told DSNews.com that there is ""no merit to [the] allegations.""

The percentage of borrowers underwater on their mortgage declined during the second quarter, but that welcome change of pace could come to an abrupt end as home values are again beginning to fall in markets across the country. Zillow reported Monday that as of the end of June, 21.5 percent of single-family homeowners with a mortgage owed more on the loan than their home is worth. That's down from 23.3 percent in the first quarter of this year, and 23 percent during the second quarter of 2009.