With defaults continuing to mount and declining property values still widespread, the industry is seeing an increase in short sales. Such transactions are expected to burgeon even further now that the federal government has implemented its Home Affordable Foreclosure Alternatives (HAFA) program. With the new policies and still-precarious market conditions, short sales are gaining in popularity among lenders and distressed homeowners alike, but as with any modus operandi that rapidly picks up steam, this proliferation can open the gate for fraudulent activity.
Commercial real estate prices appeared to be stabilizing toward the end of last year, but a new study shows price declines have returned. Moody's Investors Service says its index for commercial property values fell 2.6 percent in February. It was the first decline recorded by the company in four months. The share of distressed sales in Moody's repeat-sales database has increased significantly over the last year. In early 2009, less than 20 percent of resales were identified as distressed. In February of this year, that proportion reached nearly one-third.
Lending institutions started formal foreclosure proceedings on fewer California homes last quarter. MDA DataQuick reports that a total of 81,054 notices of default were filed at county recorder offices during the January-to-March period. That's down 4.2 percent from the prior quarter and 40.2 percent from a year ago. DataQuick says it's seeing signs that the worst may be over in the hard-hit entry-level markets, but problems are slowly spreading to more expensive neighborhoods.
The North Carolina Office of the Commissioner of Banks (NCCOB) says new mortgage rules aimed at reducing unnecessary foreclosures in North Carolina have been approved by the Rules Review Commission and will take effect for licensed mortgage servicers on June 1, 2010. Under these new rules, mortgage servicers will be required to stop foreclosure efforts pending the consideration of a request by the homeowner for assistance, and they will be required to respond promptly and clearly to homeowner requests for assistance.
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