REO

Lender Processing Services, Inc. (LPS) offered an early look into delinquency and foreclosure trends for November. The data provider found the delinquency rate increased slightly to 7.12 percent from 7.03 percent in October, representing a 1.2 percent increase. Compared to November 2011, the delinquency rate has fallen by 9.06 percent. The foreclosure pre-sale inventory rate decreased to 3.51 percent, with inventory falling monthly and yearly by 2.84 percent and 16.42 percent, respectively.

Industry data suggests by the end of 2010, more than 5 million homes had been foreclosed as a result of the recent housing crisis, and some anticipate another 8 million to 10 million more foreclosures will make their way through the pipeline over the next few years. However, as the National Law Center on Homelessness and Poverty (NLCHP) points out, this is only part of the picture. About 20 percent of all foreclosed properties have been rental properties, according to a recent NLCHP report. In fact, about 40 percent of all families evicted in foreclosure are renters not owners, according to NLCHP.

First time claims for unemployment insurance increased 17,000 to 361,000 for the week ended December 15, the Labor Department reported Thursday. Economists expected claims to increase to 359,000. The previous week’s report was revised upward to 344,000 from the originally reported 343,000, an unexpected sharp drop of 27,000 initial filings.

Short sales continued to increase in October, while foreclosure starts fell, according to data from HOPE NOW. Completed short sales reached 38,518 in October, representing a 13 percent increase from September. Meanwhile, HOPE NOW also reported nearly 6 million struggling homeowners have received a permanent modification since 2007. Among the modifications, 4.8 million were proprietary loan modifications, while 1.1 million mods were through the government's Home Affordable Modification Program (HAMP).

Foreclosure inventory in California continued its steady decline in November, according to data from ForeclosureRadar. The total number of preforeclosures, foreclosures scheduled for sale, and REOs fell 7.6 percent from October to November and declined by 31.8 percent from a year ago. ForeclosureRadar said, ""the significant decline in foreclosure inventory over the past year has contributed to what some are calling an 'inventory crisis' of total homes for sale."" The company attributes foreclosure cancellations as part of the reason for the decline.

HUD plans to waive the Federal Housing Administration's (FHA) anti-property-flipping rule through December 31, 2014. The agency is extending the temporary waiver that was put into place in January 2010 for another two years to encourage investors to acquire and renovate foreclosed and vacant homes.

The Center for Responsible Lending (CRL), a nonprofit research and policy group, rests the bulk of the blame for the recent foreclosure crisis in the realm of predatory lending. The group finds disparities in the types of loans that were issued to minorities prior to the foreclosure crisis and finds disproportionate affects of the staggering market on those minorities. According to CRL's estimate, about 3.3 million homes with loans originated from 2004 to 2008 have been foreclosed as of February of this year. Another 3.2 million loans originated over the same period were 60 or more days delinquent or in foreclosure as of February.

The Federal Housing Administration (FHA) has a mission of making the American dream of homeownership accessible to low- and moderate-income families and first-time homebuyers. However, due to FHA's underwriting policies and practices, Edward Pinto, resident at the American Enterprise Institute (AEI), argued the administration has instead put ""a high percentage of low- and moderate-income families and communities at risk of excessively high foreclosure rates.""

A significant drop in foreclosure starts brought down foreclosure activity in November, according to a foreclosure report from RealtyTrac. Foreclosure starts were filed on 77,494 U.S. properties in November, a 71-month low and the lowest level since December 2006, RealtyTrac reported Thursday. The decrease represents a 13 percent drop from October and a 28 percent decline from November 2011. While foreclosure starts fell, bank repossessions rose annually for the first time in 25 months.

Consumers are becoming more positive toward the idea of homeownership as home prices rise and the threat of delinquencies and foreclosures subside, Trulia reported Wednesday. Confidence in future ownership is especially prevalent among young renters. According to Trulia's American Dream survey, 93 percent of renters between the ages of 18 and 34 plan to purchase a home some day. For 31 percent of renters, that ""some day"" is actually within the next two years, an increase from 28 percent in May 2012 and 22 percent in January 2011.