REO

A new report from Zillow shows home sellers in the West tend to have the greatest advantages over buyers when it comes to negotiation, while buyers in the Midwest and Mid-Atlantic areas are likelier to come out of a sale with more left in their wallets. With the exception of Washington, D.C., the top sellers' markets are all in the West, with six of the top eight located in California. Non-Golden Gate State entries include Las Vegas, Nevada; Seattle, Washington; and Phoenix, Arizona.

In Southern Nevada, short sales still proved to be a popular trend as the housing market moves further away from foreclosures, according to data from the Greater Las Vegas Association of REALTORS (GLVAR). Although the percentage of existing homes sold through the short sale process declined in November, the percentage is still in record level territory.

Treasury, HUD, and the Ad Council are reaching out to struggling homeowners with a message of hope. On Wednesday, the groups announced the launch of the third and final phase of their Foreclosure Prevention Assistance Public Service Advertising (PSA) Campaign. With data showing nearly one in 14 homeowners knows what it means to be behind on a mortgage payment, the campaign aims to identify those struggling homeowners and educate them about the free resources available to help prevent foreclosure.

After four and a half years, the National Foreclosure Mitigation Counseling (NFMC) program has assisted 1.5 million at-risk homeowners, according to a NeighborWorks America report. Consumers who received mortgage modification assistance from NFMC saw their monthly payments decrease by an average of $176 more per month compared to non-NFMC clients. In addition, homeowners who sought assistance from NFMC were nearly twice as likely to receive a modification.

Strong positive indicators in the housing market have Capital Economics revising its predictions on growth in 2013 and beyond. According to the firm's most recent US Housing Market Analyst report, Capital Economics foresees ""further strong gains in home sales and housing starts in 2013,"" as well as improvements in prices and mortgage activity. According to the report, ""[t]he improvement in sales will continue to owe a good deal to investors and cash buyers, who are attracted to housing by the sheer extent to which it is undervalued and the prospects for strong rental market demand.""

A surge in new issuances brought down the CMBS delinquency rate in November to a two-year low, according to a report from Fitch Ratings. The November CMBS delinquency rate stood at 8.17 percent, representing a decrease of 12 basis points (bps) from 8.29 percent in October. The decrease marks the sixth consecutive month the rate has fallen and is the lowest level since November 2010, when the rate was 7.96 percent.

HUD's next sale as part of the Distressed Asset Stabilization Program (DASP) will include even more loans. The agency announced it will put out about 10,000-15,000 loans in its next sale, which will take place in the first quarter of 2013. The most recent sale in September included about 9,000 loans.

New Jersey Community Capital (NJCC) was selected as part of HUD's Distressed Asset Stabilization Program (DASP) to purchase 399 troubled loans, the nonprofit announced Tuesday. Out of the 399 loans purchased by NJCC, 150 were based in Essex County, New Jersey and another 249 in Tampa Bay, Florida.

Although short sales continue to be utilized more and more as an alternative to foreclosure, RealtyTrac suggested the trend may change if the Mortgage Debt Relief Act of 2007 does not get extended. According to RealtyTrac's Q3 foreclosure and short sales report, short sales increased quarterly and yearly by 15 percent and 17 percent, respectively. ""However, the scheduled expiration of the Mortgage Forgiveness Debt Relief Act at the end of this year could stifle this trend toward short sales,"" said Daren Blomquist, VP of RealtyTrac. Pre-foreclosure sales--properties in default or scheduled for auction--were also up in Q3 and increased by 22 percent both quarterly and yearly.

After remaining relatively flat for about a year, mortgage fraud is on the rise again, according to CoreLogic. All categories of mortgage fraud increased year-over-year in the first quarter of 2012, with employment fraud taking the lead with a 50 percent increase. CoreLogic attributes this rise to continued high levels of unemployment across the nation combined with low mortgage rates, incentivizing homeowners to misrepresent their employment status on loan applications. In an environment of increasing distressed sales, CoreLogic also sees heightened risk for short sale fraud.