Market data showed that out of 185 REO properties for sale, only about 53 sales for a total of $17.7 billion were completed since last year.

And the worst sales rate was posted in retail wherein only 13 out of the 71 properties on sale were escrowed for an estimated $143 million or $198-per-square-foot.

Meanwhile, hotel sales provided a positive note on an otherwise lackluster commercial real estate market, with 13 properties out of 16 sold since last year or an average price of $256,854 per-square-foot. The total sales volume for the whole deal was estimated at $17.2 billion.

On the other hand, disappointing sales were posted at the office and industrial building market, with only nine properties sold out of 29 REO properties for sale, for an average price of $227,000 per square-foot. Additionally, eight out of the 38 industrial buildings on the market have been sold with an average price of $109 per-square-foot.

Most potential buyers are adopting a wait-and-see-attitude when it comes to purchasing commercial real estate properties. They prefer to wait for the market prices to drop before jumping into the bandwagon.

Industry experts are expecting sharp decline in prices once a flood of commercial foreclosures are release on the market in the months to come.

The hesitancy of prospective buyers to jump into the current commercial real estate market is evident in the case of the 5.3-acre former Klondike Casino property in Las Vegas, Nevada. The property was initially offered on the market for $8 million. However, lack of interested buyers forced owners to remove the price and to consider all sales offers.

Restrepo Consulting Group consultant John Restrepo pointed out that some buyers purchased commercial properties before they go into foreclosures for just 40 centavos on the dollar or much less.

Many commercial properties across the country are on the precipice of becoming REO properties for sale because of the worsening economy which resulted to decline in rents and values, indicating that they are worth more than their total debt.

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Task force chairwoman 11th Circuit Judge Jennifer Bailey said that homeowners in Florida missed out on many alternatives to avoid REO property listing, including federal programs, because most of them do not trust their lenders or failed to understand the process.

According to results of a statewide survey, many distressed homeowners want to work with their lenders to create possible ways to avoid foreclosure. Meanwhile, lenders are developing new types of foreclosure prevention programs and attempting to reach out to troubled borrowers.

However, these efforts proved to be ineffective because many homeowners have little understanding of the foreclosure proceeding, other than its cost, according to Bailey. She explained that most lenders failed to explain the process to distressed homeowners in a way that they would understand it.

The state task force is planning to recommend that troubled homeowners pay for their foreclosure counseling. It also plans to require mediations in all repossession cases.

According to Bailey, many homes will be saved from REO property listing if foreclosure prevention counselors can recommend programs that will best work for the troubled borrower and they can explain details of various workout programs. She added that in this case, more foreclosure cases would be settled instead of languished in court.

Data showed that foreclosure filings in the state rose four times between 2005 and 2007, resulting to case backlogs due to limited judicial resources.

On the other hand, Judge Lee Haworth requires mediation in Manatee and Sarasota counties. Under the rule, distressed homeowners of homestead properties have the option to request for mediation before lenders could file an expedited foreclosure process in court.

The state task force is to recommend to the Florida Supreme Court ways to manage all the foreclosure cases while protecting lenders and homeowners’ rights.

Bailey said that several options are available for homeowners to save their properties from foreclosures. These options include loan modification, mediations and short sales.

The task force plan to use results of the survey to ensure that it has a clear and accurate outlook of the REO property listing crisis.

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Cordray said the three firms were already ordered to stop offering illegal and predatory foreclosure counseling services in Ohio, but the firms persisted. He asked the court to order the firms to reimburse clients whose homes have been foreclosed and pay $25,000 for every violation.

In Cordray’s suit, he stated that Foreclosure Home Assistance charged $1,500 for each loan modification application it received. The firm also used the FHA acronym in its mail solicitations and promised renters that the deeds of landlords can be transferred to their names once the rental units are foreclosed.

Meanwhile, a court in Cuyahoga County indicted lawyer Dea Character and his partners for forging mortgage documents to obtain $3 million in home loans for seven borrowers. Investigators said Character deceived lenders and title companies by inflating home sales prices and repair costs and submitting false income documents and fraudulent bank account papers.

Character also deceived the borrowers by giving them inflated home sales prices and loan costs to be able to profit from the differences.

In another Ohio court, Cleveland Judge Raymond Pianka instructed banking firm Wells Fargo to maintain its foreclosure properties in Cleveland and comply with building codes by repairing substandard properties or tearing down dilapidated properties.

The court also ordered Wells Fargo to first submit documents indicating compliance with building codes before selling foreclosure properties priced lower than $40,000.

As of April this year, Wells Fargo has 180 foreclosure properties in Cleveland.

Nonprofit housing directors such as Frank Ford applauded the court order, saying that the court action will be an example for all other banks that own foreclosed properties in Cleveland.

Previously, Wells Fargo argued that court requirements would weaken home sales further and would make its properties become vacant for longer periods of time.

Wells Fargo planned to appeal the court’s order, contending that Judge Pianka was biased because he has just attended a meeting on vacant properties.

In December, a unit of Neighborhood Progress, sued to make the courts declare bank owned foreclosure properties as nuisances if they are not fixed.

In response, Wells Fargo reiterated its long record of responsible home lending and preservation of foreclosure properties in neighborhoods.

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In April, 384 housing units were sold, with an average sales price level of $142,101. May home sales increased to 405, with an average sales price of $137,167, a drop of more than 3 percent from the April average price. The average home sales price in May 2008 was $172,088.

With affordability levels increasing, many previously-owned homes have been receiving multiple offers, pushing down the number of properties in foreclosure list inventories and other pre-owned inventories.

Real estate analysts contend that the ideal housing market inventory level is a six-month supply of homes for sale. This level, according to market experience, gives a balanced playing field for both buyers and sellers and gives them confidence about the fairness of the selling and buying deal.

In Northern Kentucky, there was a point in the past few years when the housing market had an 11-month level of inventory of foreclosure list homes and non-foreclosed homes.

Just like in other low-priced housing markets, homes in the $100,000 to $200,000 price range are getting sold faster than homes priced above $200,000. Houses in the lower range have been receiving multiple offers.

Kentucky analysts said the 5.5 percent increase in sales of foreclosure list homes and non-foreclosed properties in May would have been higher if credit was as widely available as during the housing boom. Mortgage lenders now are requiring credit scores in the 620 to 680 range before home buyers can get home loans.

It was the federal tax credit, many real estate analysts in Kentucky said, which enticed first time home buyers to make their home purchases, as the tax credit is set to expire in November this year.

Many analysts are saying that if national lawmakers can extend, increase or widen the scope of the tax credit, more prospective home buyers would act on their home ownership plans and help contain foreclosure list inventories across the U.S.

Kentucky is not as battered by foreclosure inventories as other states because there were not as many subprime and other predatory loans originated in Kentucky as in other states. In May, there were only 783 real estate owned and foreclosure list homes in Kentucky.

Search Foreclosure Lists in Kentucky Cities:

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Across the country, several cities have been partnering with nonprofits to maintain foreclosure houses and other distressed properties to protect neighborhoods from blight and decay.

These efforts by cities involve grassroots strategies, local volunteers and nonprofits and are outside the funding of the federal Neighborhood Stabilization Program. The NSP funding cannot solve everything; it has to be supplemented by efforts emanating from local residents and partnerships.

If a family buys from a foreclosed home search list in a community that has been doing its own to maintain peace and the beauty of the community, then the family will be assured that his home value will not deteriorate and his family will be safe and served by neighborhood services.

One of the national organizations helping cities and counties maintain vacant properties in foreclosed home search lists is the National Vacant Properties Campaign, which is funded by government grants and private donations.

The national initiative faces a daunting task, as millions of properties in foreclosed home search lists are not only foreclosed but also abandoned. The expected batches of foreclosures arising from adjustable rate mortgages and pay option loans will make the task almost impossible.

But several cities have made progress.

In Pittsburgh, a grassroots initiative named Green Up Pittsburgh has been turning vacant residential lots into green spaces, community gardens and urban farms. The city pays for horticultural specialists and initial plantings. Volunteers and city public works personnel help each other to maintain the green spaces.

In Cleveland, Ohio, among the Rust Belt cities struggling from foreclosures, the program known as Re-imagining a More Sustainable Cleveland has been turning over 18,000 vacant lots into blocks of land that could be developed further into residential and commercial uses.

In Philadelphia, another city known for its efforts to save houses from foreclosed home search lists, officials implemented property tax abatement to save a row of vacant homes in the southwestern part of the city. Some of the units were rehabilitated and sold or rented out to qualified families while the other units were demolished to prepare spaces for development.

In Louisville, a neighborhood association has transformed rows of deteriorating homes in Phoenix Hill into a community of restored houses with a vegetable garden and a small park.

Neighborhoods like these can make buyers of properties from foreclosed home search lists feel they have finally found the community where they belong.

Under the program, the city will buy foreclosed properties and resell them. If properties needed repair, money would be available. Low and moderate income families should qualify for bank loans to buy repossession homes and should live in them for not less than three years. However, they could apply for financial assistance from Mansfield.

Starting July, applications to buy foreclosed properties, mostly located in four neighborhoods hardest hit by the foreclosure crisis, will be accepted by Mansfield’s economic development office.

According to Mitchell, the city has requested enough funds to purchase, rehabilitate and resell as many as 15 repossession homes. He added that the number of properties to be purchased will actually depend on sale prices and the extent of repairs needed.

It is expected that Mansfield will do some major repairs on plumbing, eliminate molds and make furnaces and windows energy efficient.

Mitchell said that out of the $1.7 million that Mansfield stands to receive, $400,000 is allocated for city permits and codes to demolish some blighted houses that are pulling down home values in distressed communities.

He requested the City Council to raise to $35,000 from $25,000 the money that will be used to purchase repossessed homes without seeking approval beforehand.

According to Mitchell, he is currently allowed to purchase HUD houses worth not more than $50,000 without seeking permission from the council.

Mansfield will pay 50 centavos on the dollar for every home worth not more than $100,000. For properties appraised not more than $20,000, the sale price is $100. If the city council will approve Mitchell’s request, he would be able to buy repossession homes valued between $50,000 to $70,000.

Ohio is one of the top 10 states in terms of high foreclosure rates. Last May, one out of 446 houses is in some kind of foreclosure proceeding.

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However, two months after the receipt of the fund, Phoenix has yet to purchase a single property on listings of bank owned homes using the NSP federal funds.

The NSP federal program is designed to help communities severely affected by abandoned, vacant and foreclosed properties. Under the program, individuals and families who qualify may avail of a loan for a maximum of $15,000 to pay for deposit and closings costs of properties on listings of bank owned homes.

The NSP was approved in July last year by the U.S. Congress. Following the approval was the release of $3.2 billion into communities hardest hit by the foreclosure crisis. An additional $2 billion was allocated for the program in May.

The main goal of the NSP is to stabilize and strengthen the housing market decimated by the economic and foreclosure crisis.

Arizona ranked fourth in states with high foreclosure rates in May and industry experts were hoping that the NSP funding would make a big difference in the state’s fight to prevent continuing increase in the number of properties on listings of bank owned homes.

However, most homeowners eligible for the NSP funds are still trying to overcome the hurdles of the unfamiliar process.

The program is offered only for homeowners with income of between $55,350 and $104,400, according to the Department of Housing and Urban Development (HUD), adding that the income restrictions vary from one region to another.

To be eligible, applicants must undergo and complete financial counseling and financial courses in home ownership and budgeting and invest $1,000 from their personal funds.

Under the program, the HUD requires lending institutions to give 15 percent discount to homebuyers. Furthermore, loans must be paid in full when homeowners refinance or sell the properties. However, lending institutions are not required to accept a reduced or discounted offer.

Meanwhile, industry experts warned that the NSP is not enough to contain the number of properties on listings of bank owned homes in Phoenix, adding that there is a need to find other solutions that can help stabilize communities hardest hit by the foreclosure crisis.

The council believes that the best way to get relief from financial problems is to talk to someone who understands and relates to the problems.

The support group meetings, entitled “A safe space in tough times”, will be held at the First Methodist Church of Whittier. Council vice president Bill Miller explained that the event is similar to AA support groups, only this will be for individuals who are going through financial and repo properties problems.

The support group started in New York in the 1980s. It was resumed late last year by the Progressive Christians Uniting which focuses on outreach projects through churches. The Progressive Christians started a support group in Whittier in partnership with Interfaith Council.

Independent consultant Glen Peterson said that the main goal of the support group is to bring hope to people who are in hopeless situations.
Members of the support group are encouraged to talk, offer advice and give support to one another on various issues, including repo properties crisis, depression, addiction, job loss or retirement.

Progressive Christians Uniting chapter organizer John Forney said that during tough times, desperation could result to dysfunctional behaviors. Aside from the conversation sessions, the support group would help look for job agencies and opportunities that could help members who are facing the threat of turning their homes into repo properties.

Terry Hammack of Whittier Area First Day Coalition said that the group hopes to have something available that they could offer when they found out who those people are who are in need of help.

He said that he is hoping to find part-time employment for members in order that financial relief could be offered while they are looking for employment in their fields of expertise.

Hammack, together with Peterson and Robert Ehlers of the East Whittier City School District board, will co-lead the support group.

Meanwhile, the support group is trying to attract members and urges anyone who is facing financial problems to come out in the open and join the group.

Aside from Whittier, other support groups to help individuals facing financial and repo properties problems are being set up in Claremont, San Fernando Valley and Downey.

Learn how to find foreclosures.

For the few months of this year, over 35,000 residential foreclosures were reported, representing a 20 percent increase from the first seven months of the previous year. According to records, the 6,072 foreclosures included on repo homes listings scheduled for July auctions have exceeded the May filings of 5,500.

For 10 consecutive months, home foreclosure filings surpassed 4,000 units every month in the Dallas-Fort Worth Metroplex. And in the last four months, foreclosure postings exceeded 5,000 per month. The July figures are the first time that repo homes listings added over 6,000 properties for auctions.

Real estate specialists said that July foreclosures for auctions may have surpassed the number of postings in 1988 or 1989 which reached 2,000 per month.

Meanwhile, about 2,579 homeowners in Dallas County are facing the possibility of losing their homes to foreclosures, an increase of 56 percent from the previous year.

An even more significant increase occurred in Tarrant County where foreclosure postings surged by 66 percent compared with figures recorded a year ago. The increase represented 2,015 properties scheduled for auctions in July.

In Collin County, foreclosure postings were up 67 percent while 68 percent of homes in Denton County are up for grabs among bidders in July.

According to industry experts, various programs designed by the government and mortgage companies to help distressed homeowners may be a cause on the rise in foreclosure postings. They explained that while lending institutions are negotiating with homeowners, they usually re-post each distressed property every month while foreclosure actions are pending.

They noted that many lenders are delaying actual foreclosures to give more time for loans lined up for modification to be processed. As the number of delinquent mortgages continues to inch up, it follows that lenders would be overwhelmed by the volume of loans under foreclosure proceedings.

Generally, nearly 40 percent of properties on repo homes listings are sold at foreclosure auctions by lenders. The remaining distressed loans were renegotiated or some arrangements have been made in order for homeowners to avoid foreclosures.

Brookings’ survey of 100 markets showed that the Dallas-Fort Worth Metroplex area was ranked 36 in terms of high number of properties on repo homes listings.

However, only 16 percent of properties scheduled for auctions were actually put on the auction block. Year-to-date comparison showed that 49 percent of foreclosed properties were auctioned off.

Additionally, 40 percent of last month’s delayed repossessed homes auctions were requested by lenders, while 33 percent were postponed as a result of the agreement between homeowners and lenders.

According to industry experts, the data showed that lenders are doing their best to help distressed homeowners and delay foreclosures. They claimed that there was less number of properties being foreclosed compared with the percentage of homes scheduled for foreclosure or in default.

Also last month, the number of homeowners who received notices of default dropped by 4 percent from a month ago and 3 percent from the April total the previous year. The total number of statewide foreclosure filings was 40.870.

Notices of default are the first stage of foreclosure proceedings. It occurs when a homeowner missed paying his mortgage installments.

Meanwhile, May foreclosures scheduled for auctions declined by 30 percent to 17,871 compared with the same month a year ago. Furthermore, 84 percent received opening bids lower than the outstanding amount of loan. An average opening bid for repossessed homes was 59 percent of the total loan amount.

For example, if a foreclosed home with a loan of $100,000 was scheduled for auction, the average opening offer would be around $59,000. On the other hand, of the total number of distressed properties that went into the auction block in May, almost 88 percent were withdrawn by lenders when third-party bidders failed to win the property.

Usually properties that remained unsold after the auction were taken back by lenders to sell on private auctions or open market.

Meanwhile, California’s May foreclosure rate was the second highest in the country despite the 4 percent drop in the state’s foreclosure activity from April. One out of 144 homeowners received a foreclosure filing last month, totaling 92,249 properties.

The number of foreclosure filings last month represented a 23 percent increase from the same month a year ago. On a positive note, bank repossessed homes in California declined 1 percent from April to May and defaults inched down by 18 percent.