Despite the increase, however, home price and sales levels were still lower than numbers in July last year.

The median price for homes and condos sold in Ventura County in July climbed up to $375,000, marking an increase from the $365,000 median in June and from the $355,000 median in May, based on data from a Southern California-based real estate research firm.

However, compared to the median sales price in the same month in 2008, the $375,000 July median marked a 10.7-percent drop from the $420,000 median in July 2008.

Across Southern California, the median home sales price in July increased compared to June, as home sales increased in higher-priced coastal areas and as sales of distressed foreclosure properties declined.

Additionally, home sales across the region in July increased by 18.6 percent compared to July 2008.

On the other hand, the number of houses and condo units sold in July in Ventura County dropped to 837 units, marking a drop of 3.8 percent from home sales in July 2008.

According to housing analysts in Southern California, the increase in home sales in July was driven by lower mortgage rates, increased affordability, availability of FHA financing and federal tax credits for first time home buyers, increased demand from investors and availability of financing for higher-priced homes.

The decision of the Federal Housing Finance Agency to increase temporarily its conforming loan limit to $725,750 this year encouraged many homeowners to move up.

According to the sales data, of the total houses sold in July in Ventura County, homes priced above $417,000 increased to 15.1 percent, the biggest percentage reached since August 2008.

On the other hand, the percentage of sales of foreclosure homes and condos fell to 43.4 percent, the lowest percentage posted since June 2008.

Despite the declining trend in sales of foreclosure properties and the increasing trend of home sales prices in Southern California, especially Ventura County, housing analysts are still hesitant to declare that home prices have bottomed out.

They explained that there are still uncertainties about the effects of current and future foreclosures and job losses. Many of them contended that home prices may linger at the bottom or just above the bottom for many more months.

Ventura Home Prices Rose, Foreclosed Homes for Sale Dropped is a post from: Foreclosure Homes Investing

In June, 0.4 percent of all outstanding home loans in Orange County were in foreclosure, a drop from the 0.5-percent rate in May and from the 0.9-percent rate in June 2008.

In the second quarter, foreclosures declined in about 70 percent of zip areas in the county, compared to the second quarter of 2008.

But the rates of delinquencies rose in June. About 6.6 percent of all outstanding mortgage loans were behind in monthly payments by more than 90 days, but these have not yet received notices of default. The rate marked an increase of 6.3 percent from May and a jump of 4.1 percent from June 2008.

Meanwhile, the rate of home loans with foreclosure suits but not yet processed reached 2.3 percent of all outstanding loans in June, an increase of 2.3 percent from May and an increase of 1.5 percent from June 2008.

Housing analysts contend that the rate of foreclosures may have slowed down because of efforts to step up the Home Affordable Modification Program. But because of the rise in rate of defaults, foreclosures are expected to jump up again.

There are other factors that could spike foreclosures, including the continued rise in the unemployment rate and the resetting of pay-option adjustable-rate mortgage loans.

The unemployment rate in Orange County is hovering around 8 percent and is expected to hit 9.7 percent in 2010 due to the lingering effects of the recession.

There are also those who contend that despite efforts to intensify loan modifications, many lenders are not working out modifications because they believe that modifications are costlier than foreclosure. They believe that many borrowers whose loans are modified will redefault after just several months.

In Orange County, foreclosures declined to only 482 single family houses and condo units in April. But they reversed their direction in the following months, putting 591 units in May and 833 units in June into foreclosure.

Meanwhile, in a survey of foreclosures in the first 6 months of the year in 203 metro areas with the biggest foreclosure rates, the metro area covered by Santa Ana, Los Angeles and Long Beach had more than 106,000 foreclosure cases, with 2.41 percent of all mortgage loans receiving foreclosure filings.

Orange County Foreclosures Fall but Defaults Rise is a post from: Foreclosure Homes Investing

Distressed homeowners who were slapped with foreclosures due to subprime mortgages turned to ACORN to save their properties from becoming foreclosed homes. The Home Defenders group sometimes helps families who were evicted return to their homes.

A notable case handled by the group involves the First Franklin Home Loan, a mortgage lending company specializing in subprime loans. Some borrowers complained that the lender refuses to provide assistance to them, particularly when it comes to modifying loans.

In 2008, the California Reinvestment Coalition (CRC), a consumer advocacy group, conducted a survey of several homeowner assistance organizations that help homeowners at risk of foreclosures. First Franklin Home Loan and affiliates were cited several times by respondents when they were asked which loan servicers were uncooperative in providing assistance to distressed homeowners.

Several complaints against First Franklin Home Loan and its lending affiliates were also received by the Better Business Bureau. Aside from this, First Franklin Home Loan and its affiliate, Home Loan Services are defendants in over 40 lawsuits filed in federal court since April 2007.

According to industry experts, First Franklin Home Loan should willingly help distressed homeowners save their properties from becoming foreclose homes sale. The loan servicer is one of the signee in the California Subprime Loan Agreements of Governor Arnold Schwarzenegger which was enacted in 2007.

Under the agreement, homeowners who are at risk of falling behind in their payments could become eligible for assistance and services, including the option to retain the low fixed rates provided they keep their accounts current.

All subprime lenders, including First Franklin Home Loan, that signed on the agreement do so with the understanding that they would reach out and provide assistance to homeowners.

With the help of ACORN, some homeowners who were refused help by First Franklin Home Loan turned to Nancy Nadel, a city councilwoman, for assistance. However, Nadel tried and failed to contact First Franklin Home Loan.

To highlight the plight of distressed homeowners and the foreclosure problem, ACORN members would rally in front of troubled homeowners’ houses. The organization would try to get representatives of lenders to negotiate with distressed borrowers to help them save their properties from becoming foreclose houses.

Foreclose Homes Rescue Initiative for California Homeowners is a post from: Foreclosure Homes Investing

Real estate analysts in the area have observed that the number of houses sold in May almost matched the number of houses offered for sale in the same month, prompting hopes that the balancing of demand and supply is finally working out for the market.

In May, out of 343 housing units offered for sale, 369 units were sold.

Just like in other housing markets across the country, Monterey’s housing market started its downward spiral in 2007 when large numbers of subprime mortgage borrowers defaulted. Most of these home loans were provided by lenders to borrowers who actually could not afford to pay their loans.

Houses inflated foreclosed home inventories and pushed down the prices of not only foreclosed houses, but also the prices of new homes and the values of neighboring homes occupied by families who were faithfully paying their mortgage loans.

The recession that followed and the consequent loss of jobs worsened the situation and put more houses into foreclosed home inventories.

Despite concerns about declining home price levels, housing analysts and residents of Monterey are glad about the slowing pace of foreclosed home inventories.

A further slowdown in foreclosures is expected after the California Foreclosure Prevention Act, which included a three-month foreclosure moratorium provision, took effect this week.

Under the new foreclosure prevention law, mortgage lenders are required to first work out a loan modification before foreclosing on a property. They can cut the interest rates or extend the term to lower monthly mortgage payments.

Lenders are also required to submit their loan modification plan to the state if they like to get exempted from the three-month foreclosure moratorium.

Since 2007, California has already posted over 365,000 foreclosures, with many more expected as the scheduled adjustments of Alt-A home loans occur.

In the past 5 months, the number of houses for sale in Monterey has been declining. In January, there were 2,406 housing units for sale. The number dropped to 2,387 units in February and to 2,274 units in March. In April, there were 2,066 units.

If Monterey’s housing market sustains its balance of demand and supply and maintains its affordability without too much loss in home value, then Monterey’s residents can say they are coping well with foreclosed home effects.

Foreclosed Home Market Stabilizing in California’s Monterey is a post from: Foreclosure Homes Investing

The cities of Palm Desert, Coachella and Palm Springs will use the funding to purchase and rehabilitate REO property in the area. They will then resell, rent or develop rehabilitated properties.

According to requirements for applying and obtaining the NSP grant, all applicants must agree to purchase and renovate foreclosed properties to develop, sell or rent, demolish structures that became eyesores in their neighborhoods, redevelop vacant or demolish properties, develop land banks for foreclosed properties and create financing mechanisms to allow low income and moderate income families to buy homes with affordable rates.

The grant will benefit residents and neighborhoods by reducing the number of REO property with dirty pools and overgrown lawns. Also, allowing foreclosed properties to be occupied will reduce potentials for vandalism, vagrants and thieves.

The NSP grant is expected to give opportunity to residents of California who want to own a house but could not afford to buy a regular priced property. It would also help a lot in addressing the growing number of REO property in California which blighted neighborhoods and communities.

Coachella’s plan in line with the NSP requirements will focus on attracting first-time homebuyers who have moderate income to occupy the city’s REO property. Homebuyers who have moderate income are said to be the most overlooked population segment and the city believes that they deserve the same opportunities being afforded to low income families.

Data from RealtyTrac showed that foreclosed homes in Palm Springs totaled 676, 519 in Coachella and 253 in Palm Desert.

Statewide, California was ranked the second highest state nationwide in terms of foreclosure rate last month, despite a drop of 4 percent in repossession activity from April. Last month also showed foreclosure filings made on 92,249 properties. The figures were the highest total among other states, representing about 23 percent from the May 2008 total.

Meanwhile, bank owned foreclosures in California declined by 1 percent compared with April figures. The number of defaults also went down by 18 percent. However, scheduled auctions of REO property went up to 18 percent.

California cities included in the top 10 with high foreclosure rates nationwide are Stockton, Modesto, Riverside-San Bernardino, Merced, Bakersfield and Vallejo-Fairfield.

Grants to Buy and Fix REO Property in 3 California Cities is a post from: Foreclosure Homes Investing

Under the program, up to 5 percent of the sale price or $19,000, whichever is the lowest, will be provided to first time property buyers who become eligible for the Federal Housing Authority (FHA), Federal Home Loan Mortgage Corp. or Federal National Mortgage Association 30-year fixed rate mortgage.

To qualify for the program, prospective homebuyers must have worked or lived in the Big Bear Valley for a year, have an average income of 81 percent to 120 percent of the Area Median Income, provide their own money to close escrow for an amount of about 2 percent of the total home purchase price, must make the house as their principal residence and must have no more than 10 percent of the property sale price in savings, cash and other liquid assets.

The properties eligible for the program must be situated in the city and should have a maximum sale price of $380,000. The house must be a short sale, foreclosure or listed on the Multiple Listing Service for sale for not less than six months.

The program is aimed to help reduce the number of repo properties in the area to help stabilize home prices and the housing market and aid first time homebuyers.

The funding for the program comes from the Low and Moderate Income Housing Fund. It also features a deferred, second loan with 3 percent interest rate and no monthly payments. The repayment of the loan is deferred until the house is refinanced, sold or titled transferred. In this case, the loans and accrued interest are due and payable.

Meanwhile, in case the homeowner does not refinance, transfer the title or sell within 10 years, the loan is forgiven. Homeowners may also required to repay the loan and accrued interest if he fails to submit a copy of his annual California or Federal Tax Return and an affidavit certifying that he is occupying the property as his principal residence.

The city hopes that the program will make a big difference in helping reduce the foreclosed homes in the area and stabilize the housing market.

Down Payment Aid to Reduce Foreclosed Homes is a post from: Foreclosure Homes Investing

Vacant houses and condominiums bought last month in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties amounted to 19,926. The San Diego-based research company also adds that sales have increased compared to only 13,249 from last year. The region’s mean home price became $278,000 as it dropped 35 percent.

After President-Elect Barack Obama designed plans to revitalize the housing market through the utilization of the remaining half of the $700 billion Troubled-Asset Relief Program, foreclosures now enticed buyers, which originally were sold in unreasonable discounts. The first allocation of money for bailout provided assistance to lenders such as Bank of America Corp., and financial companies like Goldman Sachs Group Inc. since their assets concerning mortgages plummeted in value.

California foreclosed homes amounted to 56 percent of Southern California’s sales last December, which was twice the amount of the previous year. These deals have comprised roughly 70 percent of sales in Riverside County, where the mean price tumbled 41 percent to $209,000. Sales leaped 77 percent to 4,435.

As a smaller percentage of properties near the cost converted hands and more inland areas where mortgages defaults have risen were sold like in Riverside and San Bernardino, the mean price for the whole of Southern California took a nose-dive.

In addition, according to John Karevoll, an MDA DataQuick analyst, there is plenty of activity in distressed markets, while very little activity in less distressed markets. In the six Southern California counties, each one had a boost in foreclosed home sales. Taking the lead is San Bernardino with an 89 percent increase, which also had the largest cut in price with 43 percent to a mean of $180,000.

On the other hand, the Los Angeles County displayed the least in sales growth, with only 32 percent of deals increasing from the previous year. The mean price decreased 32 percent to $320,000. Prices dropped the least in San Diego County, as the mean waned 30 percent to $300,000.

MDA DataQuick also adds that Southern California buyers of foreclosed homes last December were primarily loaned by the Bank of America and Wells Fargo & Co.

Sales Skyrocket in Southern California Foreclosures is a post from: Foreclosure Homes Investing

In Miami, auctions on foreclosed properties rose by 18 percent from last year, with 2,290 properties. Likewise, Los Angeles experienced an increase with 11,232 properties. This is 69 percent higher than the previous year.

There is still a long way before the country sees an end to forclosures. Unfortunately, the economy has not yet recovered from a bad shape and people are constantly losing their jobs and defaulting on their mortgages.

The decline from last quarter to the present is not necessarily a good sign. What are more significant are the yearly increases and not the quarterly drops. Also, the 10-percent decrease in Miami and 29-percent in Los Angeles can be credited to the holiday and election seasons rather than a recovering economy. Government and business transactions decelerated during that period.

From 2002 to 2006, the housing market was in a surge. The constant increase was attributed to risky lending. Also, speculation played a significant role. After that period, however, a constant weakening was witnessed. Defaults in mortgages started to increase in number, particularly by subprime borrowers. The subprime crisis definitely brought about a bad economy.

In New York City, foreclosures increased by 25 percent with 764 cases. It has experienced an increase year over year. The increase can be attributed primarily to the rise in Queens where cases of subprime lending is dominant.

On the other hand, the housing market in Seattle has been stabilizing over the past few quarters. There was a drop by 12 percent from last year with only 318 cases.

There are still high hopes that the economy could recover from this turmoil. Long-term measures must be adopted to completely recover from the foreclosure crisis.

California Foreclosures Continue to Surge is a post from: Foreclosure Homes Investing

Median home price in Los Angeles County has dropped to $355,000, down by 29 percent from October 2007. The price is expected to fall further in November if nothing is done to avert foreclosures.

In the Southern California housing market of October 2007, only 16 percent of units sold were foreclosed homes. In October this year, 51 percent of total units sold were foreclosed homes. Continued foreclosures caused more repo homes to enter the market, further decreasing home prices.

In a cycle that has not seen an end, the depressed home prices made borrowers’ homes worthless compared to what borrowers owe the banks, leading to more foreclosures.

Consultant Christopher Thornberg of Beacon Economics, who was among analysts that made a 25-percent price decline forecast in November 2007, predicted that home prices will continue to fall until they have declined by 55 percent from their highest point.

According to MDA DataQuick, San Bernardino County posted the biggest price decline in October, with a decrease rate of 39 percent from prices in October 2007. Orange County had the lowest price decline, with a decrease rate of 27 percent from prices in October 2007.

Thornberg also said that owners of high end homes will try to postpone selling them, but eventually if the foreclosure crisis continues and the housing market does not recover, the owners will also be forced to sell their properties at prices much below their purchase prices.

Southern California’s Median Home Price Falls 41 Percent Due to Foreclosures is a post from: Foreclosure Homes Investing

Oakland, which is tenth in a list of cities with the highest foreclosure rates in the U.S., is also competing with other top ten foreclosure cities, such as Stockton, Sacramento, Bakersfield and Fresno, for funds from the state’s Dept. of Housing and Community Development’s $145 million housing rehabilitation budget.

The department will prioritize cities with the largest percentage of foreclosed homes, the largest percentage of houses financed by sub-prime loans and the highest escalating rate for adjustable-rate sub-prime loans. According to research company DataQuick, Oakland has 2,000 properties already foreclosed by banks.

An advocacy organization for low-income families, named Association of Community Organizing for Reform Now (ACORN) and headed by Beverly Williams, has been working with city executives and banks to modify sub-prime loans and convert them into the more affordable and flexible conventional loans. The group has also partnered with the nonprofit Urban Strategies Council to rehabilitate vacant houses and restore blighted communities.

Williams said that it has been very distressing to see lots of vacant houses and people squatting in abandoned properties. She said that on the area covered by 78th Avenue to 89th Avenue alone, there are over 150 deserted homes.

ACORN leaders have also talked with Governor Schwarzenegger and asked him to sign SB1137, which orders mortgage companies to negotiate with borrowers before foreclosing, allows tenants to remain in repo houses for a time as they look for somewhere else to stay, commands property owners to maintain their distressed properties to prevent vandalism and squatting and imposes fines on lenders that refuse to comply with housing rehabilitation measures.

Oakland Tackles Foreclosed Homes With Federal and State Money is a post from: Foreclosure Homes Investing