Those of you who have been following the housing situation probably knows that until now, there is no clear signs the market bottom has been reached. These signs include an uptick in home prices, increasing home sales activity and a decline in foreclosure inventory. But just last week, experts have been saying foreclosure activity could increase as many lenders have finally started on their shadow inventory.

Surprisingly, such news also came in the midst of an increased existing sales activity for the month of August based on the latest figures compiled by the National Association of Realtors. Completed transactions increased to 5.03 million compared to July’s 4.67 million residential properties and August 2010’s 4.24 million homes. The surge in activity could be the result of several factors, which include rising rental fees as well as availability of cheap homes for sale.

Speaking of affordability, the latest report also revealed how many investors are taking advantage of the great investment opportunities created by the foreclosure crisis. Not only are these investors buying exuberantly, but they are buying in bulk and in cash.

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Other home buyers have already expressed their concern involving these cash-wielding investors, especially since many of the sellers prefer them over non-cash buyers even if their offers are low. But, with the millions of distressed properties, the other home buyers should not be worried. It is simply a matter of knowing where to look and how to make an offer the seller cannot resist.

If you are a buyer looking to enjoy savings by purchasing these foreclosed properties, you might need to prepare yourself for the tough competition ahead of you. For starters, you should check out markets which you would not normally check out and veer away from areas which are already attracting much buyer interest. Also, be sure to have your pre-approval letter handy to assure the seller you are a serious buyer. Make sure you do your homework and negotiate with the seller based on whatever information you have gathered.

Sellers of residential properties, even homes for sale by owner sellers, should look forward to the spring home buying season in South Carolina, market analysts have stated. According to them, the month of March usually provides signs on what the home buying season will be like; and this year, the signs seemed to be pointing towards a high-selling season.

Housing industry analysts are expecting foreclosure listings in Columbia and non-foreclosure properties in Charleston and in the rest of South Carolina to get sold at a faster pace in the coming months. According to them, the increase in sales in various areas of the state is a sign that the spring buying season will be a busy one in the region.

It is not only South Carolina foreclosure listings that will benefit from the anticipated surge in sales, analysts have claimed, but also newly-built homes and FSBO properties. In Charleston, for example, sales were up by 19% in March compared with the same month of 2010, according to data issued by the Charleston Trident Association of Realtors. The association reported that over 800 residential properties changed hands during the month. The median price of houses sold for the period however, declined by 4% from last year to $177,000.

The drop in prices can lure more homebuyers into the market come spring season, analysts noted; although it might not be very good news for sellers of homes for sale by owner since it will likely force them to also lower their asking prices. Aside from the price factor, home selling seemed to be on a rebound in the region, analysts have stated.

Last year, home sales were artificially inflated by the federal government's tax credit program. With the tax credit already over, the strong sales in March showed that more people are interested in purchasing homes, even without the incentive. Analysts reported that majority of buyers are looking for low-priced cheap properties as evident in the nationwide foreclosure search which showed interest in these distressed homes. Locally, realtors believe that the surge in sales will eventually translate to higher housing prices despite the high number of foreclosure sales.

In South Carolina, homes for sale by owner sellers and residential real property brokers enjoyed the highest level of sales in Berkeley County, with housing sales climbing by 29% in the area year-over-year. Dorchester County, on the other hand, recorded a 16% sales growth during March, while Charleston posted a 15% sales jump over the same period.

The number of foreclosed properties, including Fannie Mae foreclosure properties, continues to increase in Massachusetts as most lenders are reportedly favoring foreclosure over short sales. According to a number of state homeowners, banks are not cooperating despite their best efforts to initiate a short sale and are opting instead to seize their properties.

Properties under Brockton foreclosure listings, as well as those found in various home listings in different areas of the state can undergo a short sale wherein houses are sold for less than what the owner owes a lender. This procedure is believed to be more beneficial for both borrower and lender and also benefits the general community as it helps improve housing values.

However, a number of banks and lenders reportedly prefer to add more properties to Massachusetts foreclosure lists instead of approving a short sale that in majority of cases can benefit them more than a foreclosure. Although lenders can get less from selling a property in a foreclosure auction than from a short sale, most of them allegedly refuse to approve short sale requests from homeowners.

Although most state-based banks have denied this and have asserted that they favor short sales more than foreclosures, bank and Fannie Mae foreclosure properties continue to rise in number in the region as lenders reject a number of short sale applications. According to housing market analysts, this is mainly due to the widespread belief that short sales often fall victim to fraudulent activities. In addition, lenders reportedly find it difficult to determine property values and are concerned about the numerous parties involved in a short sale procedure.

Analysts further added that in Massachusetts, stories of failed short sales have become common. They reported that people trying to find foreclosed homes listings have also become wary of the short sale procedure as reports of confusing transactions spread in the state. In some cases, a short sale was already approved, but the lender still foreclosed on the property and sold it at auction.

Real estate experts have stated that lenders are losing more and more money as bank and Fannie Mae foreclosure properties continue to rise in the state. They added that fear of involvement by shady buyers and investors and inability to value a home properly prevent them from appreciating the benefits of short sales.

Search foreclosure lists in Massachusetts cities:

• Lowell Foreclosure Listings
• Boston Foreclosure Listings
• Malden Foreclosure Listings
• Lynn Foreclosure Listings
• New Bedford Foreclosure Listings

Prices of homes in Metro Detroit, Michigan have risen during the 2010 second quarter despite the thousands of foreclosed dwellings under listings of residential properties in the area. The region recorded a 3.5% rise in property prices for the April to June period compared with the January to March period of 2010.

However, most analysts are predicting further declines in home prices in the coming third and fourth quarters, mainly due to the huge supplies of Detroit home foreclosures. They did, however, welcomed the second quarter statistics and housing data for June 2010 which saw Detroit, along with Minneapolis and Chicago, recording the highest monthly increase in home prices nationwide at 2.5%.

According to data released by S&P/Case-Shiller National Home Price Index, 17 out of the 20 metropolitan areas they cover recorded home price increases during the month of June. For the metro area of Detroit, June price increases were lower by 0.8% when compared with the overall second quarter increase, which means that home foreclosures in Michigan have caused June statistics to stay flat when compared with June 2009.

In terms of nationwide performance, listings of residential properties remain a major problem in most areas of the U.S., but the country still recorded a 4.4% increase in house prices for the second quarter. This is being seen as good news, considering that in the first quarter of the year, nationwide house prices declined by 2.8%. When compared with the second quarter of 2009, the latest price increase is 3.6% higher.

Despite the strong performance of the city in terms of home prices, the rest of 2010 is expected to be quite a difficult time, with home foreclosures in Detroit expected to continue to post high totals. The end of the federal tax credit initiative is also projected to cause home sales declines, with July already showing some sign of buyer inactivity.

According to Realcomp II Ltd., sales of condos and houses in Metro Detroit for July dropped by 19.4%, leading most analysts to predict that the metro area is in for further price declines for the rest of 2010. They also added that weak demand for foreclosed and newly built homes under listings of residential properties will eventually catch up with home prices before the year ends.

The houses that were purchased by Indio, California from bank and Freddie Mac foreclosure lists and were renovated under the Neighborhood Stabilization Program are about to be sold. To make the renovated dwellings even more affordable, the city also offers financial assistance to buyers up to a maximum of $75,000 or 30% of the selling price.

The effort is part of a larger, statewide initiative designed to address foreclosure-related problems in the area, including the high number of properties under Palm Springs foreclosure listings and other city foreclosed home listings. The houses that were purchased under the program are mostly from neighborhoods all around the state that were affected by high rates of foreclosures.

As part of the effort to offset the impact of expanding foreclosed California home listings, a number of cities in the state have started similar programs. Indio has been using the $2.8 million funds it received from the federal government to refurbish and sell foreclosed dwellings to improve the condition and home values of neighborhoods all around the city.

So far, Indio has bought 13 houses under bank, government or Freddie Mac foreclosure lists to be rehabilitated and sold later. Among these dwellings, seven are already completely renovated and ready to be sold, while the remaining six are still in the process of being remodeled. The residential properties will be made available mostly to first time buyers.

According to officials handling the housing program, the effort is not only meant to make a dent on foreclosures lists all around the city, it is also designed to encourage home ownership and promote neighborhood improvement. The Indio initiative particularly targets low and moderate income home buyers. It is available to both first time buyers and those who have not owned a house for the past three years.

Aside from Indio, other areas in the state are also purchasing foreclosed residential properties and renovating them to be sold to low income buyers. Areas like Cathedral City and Desert Hot Springs are just two more examples of local municipalities that are purchasing houses from bank, government or Freddie Mac foreclosure lists and remodeling them and putting them back in the market.

Utah is one of the states hit hardest by bank and Fannie Mae foreclosures. However, home builders in the state are not hindered by such concerns and are demonstrating resilience, particularly during the first half of 2010. Latest reports from the Bureau of Economic and Business Research from the University of Utah showed that new houses for 2010 will be 50% more than those constructed in 2009.

Despite the high number of properties under home foreclosure listings in various areas of the state, the local home construction business continues to find ways to thrive and build new dwellings. According to local home builders, the new homes being constructed will be offered for sale at prices lower than $300,000. These dwellings are expected to compete with foreclosed and short sale residences being sold in the state's market.

Some home building industry officials have stated that the construction projects will pave the way towards a recovery from housing problems created by the vast supply of foreclosed residences and bank owned homes in Utah. They added that the recovery will be gradual, but will be a form of recovery just the same.

The home construction industry of Utah suffered from a decline at the same time that the number of foreclosed properties and Fannie Mae foreclosures rose in the state. According to reports, the 2006-2009 period was the worst for the construction market. The last time that the state's home building industry experienced the same level of decline was back in the 1950s, local reports have revealed.

The decline reportedly started in May 2006 and was heralded by the high number of Salt Lake City bank owned homes and foreclosed properties. Real estate experts have stated that the problem was instigated by mass speculation in the housing market and was made worse by the 2007-2008 financial market crisis. They further added that 2009 can be considered as the worst period for the Utah housing industry.

Despite the glum reports, real estate market analysts believe that Fannie Mae foreclosures and other types of housing market problems will be greatly helped by the construction activities. They also expect the building of new homes to continue to thrive up to 2011.

Search bank owned foreclosure listings in Utah cities:

• Saint George bank owned foreclosure listings
• Lehi bank owned foreclosure listings
• Ogden bank owned foreclosure listings
• West Jordan bank owned foreclosure listings
• Herriman bank owned foreclosure listings

First time home buyers and investors alike are checking the listings of foreclosure homes for sale in South Florida. Included in the said list are really cheap condominiums.

With the high rate of foreclosure in the area, it is not surprising that even condo associations have been having problems in terms of maintaining these deteriorating structures.

Although the current market situation looks bleak for people who bought condos during the last housing boom, it can be said that investors looking to spread some of their cash around may enjoy many opportunities.

According to a condo specialist, there is a huge appreciation potential for these properties especially if the buyer or investor is able to work out the ownership issue and financial institutions loosen their lending regulations.

In fact, an investor who would shell out $60,000 to buy a condo today could most likely see their investment double after just five years. This is despite any increase in assessment fees and association dues.

According to experts, the greatest opportunities lie on complexes which suffered from the foreclosure crisis the most. Listings of foreclosed homes for sale in places such as the Park View and Lakewood Ranch include condos which were previously bought for $240,000 and are now being offered for $50,000.

Of course, experts are also advising investors to do their homework. It is clearly not enough for them to just have the cash to make the investment a success. They also need to be extra cautions since these complexes may come with hidden costs in the form of repairs, future infrastructure requirements, etc.

In addition, buyers and investors can never really tell if the South Florida condo complex they find in listings of homes for sale is really a great deal unless they try to obtain financing. A lot of deals are unsuccessful because the investors failed to consider the fact that condo complexes require a 10 percent reserve in the total budget.

Foreclosures list prices and sales pulled down the average home sales price in Grand Rapids, Michigan in September, based on data from the Grand Rapids Association of Realtors.

The average home sales price in Grand Rapids this September dropped by 6 percent from September last year to $109,191.

The drop in home prices contributed to the increase in house sales in September in the area, pushing up sales by a record 37 percent and marking the eighth time monthly sales surpassed corresponding monthly sales in 2008.

Greg Carlson, head of the realtor association, said the increase in home sales and the corresponding drop in housing inventory indicate a positive development in Grand Rapids. But he said he is still cautious because of uncertainties in many factors affecting the market.

He cited the adverse impact of the expiration of the $8,000 federal tax credit for first time home buyers in November, which has been contributing to the increase in home sales.

He also mentioned the temporary effects of the 90-day foreclosure moratorium implemented by the state in July. He contended that the moratorium may be only delaying the entry of distressed homes into foreclosures list.

According to Carlson, there were about 1,100 foreclosure properties available for sale at any one time in the past months, but after the foreclosure moratorium was implemented, there were only about 500 foreclosure homes on the market. After the end of the moratorium, Carlson speculated about the return of large numbers of foreclosures to the market.

Other realtors however are convinced that the bottom of the housing market in Grand Rapids has been reached. They said that the list of properties priced under $20,000 in the past months numbered about 200 and occupied three pages at any one time, but now, they said, these types of low-priced properties occupy only three-fourths of a page.

Nationwide, several indicators also have been showing signs of the start of housing market recovery. In August, construction spending climbed up unexpectedly by a record rate — the sharpest rise in the housing construction sector in almost 16 years.

In August, home price declines nationwide also slowed, as shown in the Standard & Poor’s/Case-Shiller Home Price Index that monitors home price movements in 20 major U.S. cities.

In addition, the National Association of Realtors also reported an increase in pending home sales in August for the seventh consecutive month, including pending sales from foreclosures list inventories.

As mortgage lenders accumulate losses from foreclosure listings and as they implement stricter processes and more requirements for loan applicants, incidents of loan fraud have started to increase.

According to LexisNexis Service’s Mortgage Asset Research Institute (MARI), the number of mortgage fraud incidents has risen to record levels in the first months of 2009. As more and more lenders are limiting their mortgage loan approvals because of their apprehensions about foreclosure listings, incidents of loan fraud soared in 2008 by 26 percent from fraud figures in 2007.

Denise James, director for residential mortgage solutions at LexisNexis, said the large numbers of foreclosure listings, the reduced number of approved loans and the economic downturn have been forcing more and more people to commit loan fraud.

MARI’s data showed that Rhode Island had the highest mortgage fraud rate in the first months of 2009. For the first time in years, Rhode Island entered the top ten ranking in number of fraud compared to number of loan originations in the state.

Meanwhile, Florida, the second state with the highest rate of foreclosure listings in 2008 and in January 2009, has posted the second highest rate of loan fraud in the first months of 2009. In 2007 and in 2008, it led fraud rankings, now led by Rhode Island.

James of MARI said that in 2008, the most dominant type of home loan fraud was application form fraud. Around 61 percent of recorded frauds in 2008 involved the use of fraudulent information on application forms.

The second most frequent type was the use of fraudulent financial statements and tax returns. This type represented 28 percent of all frauds in 2008. The third was inflation of property appraisal. The other fraud types include misrepresentation of information on deposit, employment and credit documents.

James also said fraud incidents related to foreclosure listings are increasing. Scammers and swindlers are enticing distressed homeowners with offers of loan modifications that never happen. Some cons even persuade borrowers to give them their deeds to the property so they could modify their loans faster.

Furthermore, fraud incidents involving older and immigrant homeowners are increasing. Scammers take on the identities of immigrant and elderly renters and then apply for mortgage loans. They pay for just a few months and then live in the properties rent-free after the homes are added to foreclosure listings.

According to the Mortgage Banker’s Association, their mortgage applications index has plunged by 23 percent, from 591.4 to 455.4 during the week that ended September 26.

With the collapse of Wall Street and subsequent chaos in the finance and banking industries, it has become more and more difficult for home buyers to get approved for mortgage loans. To make matters worse, the rising foreclosure rate has made lenders cautious and forced them to tighten their lending guidelines.

Last month, the government decided to take control over Fannie Mae and Freddie Mac in an effort to address the problems in the housing and mortgage industries. The said rescue plan involves injecting these institutions with about $100 billion each to make sure that they stay afloat in the midst of the credit crisis.

Still, the overall condition of the housing industry remains to be unstable. Refinance index also fell by 34.7 percent compared to the previous week while purchase index dropped by 10.9 percent. On the average, the interest rate for a 30-year fixed rate mortgage loan slipped slightly by 0.01 percent.

Nationwide, home prices continue to decline and inventory of homes – both new and existing – has grown considerably. Although the implementation of the $300 billion housing rescue program started last October 1, many analysts are not sure if it would be enough to save the millions of lenders and distressed homeowners who are struggling with bankruptcy and foreclosure.

Even buyers, who would have passed the strict lending guidelines, have decided to step away from the market until such time that they are sure that their money will be safe and that their decision to invest in real estate properties will be a sound one. Some of the buyers are checking out foreclosure homes for sale in order to minimize the risks since these repossessed properties are sold at a relatively-cheaper price.

For now, there is no indication whether the market will soon bottom out and if the government efforts will yield positive results. For certain, it will be a waiting game for everyone.