The study pointed out that most foreclosure prices in many states are increasing. The biggest foreclosure price increase is reported in Arizona which saw an average 15.51 percent jump to about $285,257 From November 1 to 3. The November figures were higher compared with the listing average price of $246,944 for the whole month of October.

Some states also experienced price increases in bank foreclosures for sale, albeit at smaller averages. In California, foreclosure home prices jumped by 1.83 percent, 1.45 percent in Nevada and 1.27 percent in Texas.

Meanwhile, foreclosure prices dropped in three states in November compared with the average price in October. Maine posted a price drop of 1.88 percent, 0.72 percent in West Virginia and 0.6 percent in Washington.

According to industry analysts, the overall jump in foreclosure home prices nationwide may have been influenced by supply and demand. They said that when the foreclosure activity slowed down, it resulted to fewer foreclosure properties on the market for sale. Most foreclosure homes are available at discount prices that is why they are considered as good investments.

Investors loaded with cash have been flocking to foreclosure auctions to find good deals. They are not alone in their quest for foreclosure properties as first-time buyers, emboldened by the federal tax credit, also compete for cheap foreclosure houses.

Industry experts said that in some states, multiple offers are being made for foreclosure properties, pushing higher the sale prices.

Meanwhile, experts are not sure what to make of the current trend in the foreclosure market. Many of them said that the rise in foreclosure prices will not last long because of another wave of foreclosure that is expected to flood the market.

They said that many homeowners have been seeing the values of their properties dropped to less than the total amount of their mortgage. And with the growing unemployment rate and uncertainty in the economy, many homeowners have decided to walk away from their properties, leaving them to become bank foreclosures for sale.

Most of these troubled borrowers are seeking ways to modify their mortgage loans but their modification requests were rejected. For so long now, industry experts have been criticizing the banking industry for receiving bailout funds from taxpayers but failing to reciprocate the support provided on them.

Experts said that the bulk of investors in banking institutions are taxpayers but they are not given attention and care by banks.

The banking industry has been blamed for the current housing bust and now they are being criticized for their lack of cooperation to address the subsequent foreclosure crisis. Industry analysts said that it is not surprising that banks bear the brunt of the blame on the current foreclosure problem.

They said that three years ago, the banking industry has made a promise to address the increasing stresses on their residential loan borrowers. But the number of San Diego foreclosure homes and defaults still has not slowed down.

The same scenario is being played out in the housing markets in other areas in California. The growing inability of banks to prevent the foreclosure crisis has alarmed elected officials who received numerous complaints from their distressed constituents.

The League of California Cities is scheduled to meet this month to discuss a resolution that will call on about 480 cities to withdraw their deposits from banking institutions that failed to cooperate with various foreclosure prevention efforts.

Some local officials said that if you consider all the funds that cities have deposited in banks, the move would make a significant impact. They said that banks that will be affected by the initiative are those that are not doing anything to help alleviate the foreclosure crisis.

But some industry analysts are having doubts about the proposed initiative for cities to withdraw their money from banks that failed to do their share in foreclosure prevention. They pointed out that cities have limited investment options should they decide to divest themselves.

Some members of the California House have done their share of pressuring by writing to U.S. Housing and Urban Development Secretary Shaun Donovan, urging him to pressure mortgage lenders to perform more loan modifications.

According to industry experts, the recession, foreclosures and unemployment have greatly impacted the spending patterns of consumers. They said that most businesses in the area are counting on discretionary spending as many consumers are pessimistic by nature.

Some industry analysts said that the current economic state is planned, adding that the system is a set up. They pointed out that the federal government should not give companies free capital because they are self-regulated. They added that the federal government has failed to properly manage the U. S. Securities and Exchange Commission.

Last July, Tippecanoe County posted an unemployment rate of 5 percent. The unemployment rose by one point and remained the same until January of this year when the jobless rate increased to 8.1 percent.

Market data released by the Indiana Department of Workforce Development indicated that Tippecanoe County’s jobless rate last July was 10.3 percent. What is happening in Tippecanoe County and Lafayette is mirrored in other counties and cities across the country.

The number of bank foreclosure houses across the country continues to increase as the unemployment rate rose to double digits. And now, commercial properties are joining the foreclosure fray.

In Lafayette, employees of major manufacturing companies are feeling the brunt of the recession and so do their employers who are facing challenges including decline in orders and increasing prices for materials.

Wabash National Corp. President and Chief Executive Officer Dick Giromini said that the economic environment remains depressed. He said that Wabash, a truck-trailer manufacturer, lost about $18 million in the last quarter. And since 2006, the company has eliminated about 250 salaried positions and 800 production associates.

Similarly, Caterpillar Inc. has laid off about 985 employees at the company’s Large Engine Center in Lafayette.

Industry experts noted that the number of foreclosed homes in Tippecanoe County moutnumbered single-family home construction activities last year. They said that the county is not yet done with bank foreclosure houses and more are expected in the offing.

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Included in the purchase deal are six parcels of land in Brooklyn and Cleveland. These cities will serve as test cases for Cuyahoga’s nonprofit corporation. The land bank is hoping to purchase about 250 parcels of land by the end of 2009.

It plans to intensify its foreclosure prevention efforts by purchasing troubled loans from lenders at bargain prices to help people remain in their properties by reducing their monthly mortgage payments.

Land bank chairman and County Treasurer Jim Rokakis explained that the mortgage acquired by the nonprofit will then be sold to mortgage-servicing companies or lenders. Proceeds from the purchase will be used by the land bank to help other distressed homeowners.

Rokakis said that the land bank expects to save about 600 distressed properties annually from foreclosures.

Ohio Senator Tom Patton, who sponsored the law that established the land bank, said that the mission of the nonprofit is to help distressed homeowners remain in their houses and reduce blight in the neighborhoods.

However, Republican Senator Tim Grendell said that he likes the land bank concept but believes that the legislature should be the one to approve the nonprofit’s expanded power.

Meanwhile, Rokakis said that foreclosure prevention counselors have told him that there are lenders who are willing to sell $80,000 worth of mortgage for as low as $10,000. Industry analysts said that many lenders are trying to dispose of properties that have lost their values.

Under Rokakis’ plan, the land bank would purchase troubled mortgages at discounted prices, help homeowners avoid foreclosure and allow them to remain in their properties, prevent the blight that may further destroy neighborhoods that have been suffering already from reduced property values and institute safeguards to protect holders of the new mortgages.

According to market data, there are 8,800 foreclosure properties in the county since the start of 2009. On the other hand, a business plan has been developed that details the initial program activities and outlines a strategic, long-term vision that will guide the nonprofit as it applies for the $40 million funding it projected to spend in the next four years in the course of the initiative.

The goal of county officials is to focus the land bank’s funds to where they will really help and produce significant results.

Many real estate investors are taking advantages from this situation by purchasing foreclosure homes by prices below market value. People can find these opportunities in Ohio by accessing online database of Ohio foreclosed homes.

According to market data, about 12 percent of all mortgage loans in the state were delinquent for at least a month or in some stage of foreclosure process. The figures represented a slight rise compared with the previous year.

In Beaufort County, about 594 houses were facing foreclosures, compared with 533 bank foreclosure in the first three months of this year. Additionally, foreclosures were up to 70 in the first quarter and 99 in the second quarter, all of last year.

The total figures in the second quarter of 2009 showed that one in every 137 properties was in some kind of foreclosure proceedings, the second highest ratio in South Carolina.

Industry analysts said that foreclosures in South Carolina are expected to continue to increase or will remain higher compared with typical rates in other states because of the rising unemployment rate and the number of people who worked at reduced wages.

In terms of the number of mortgage loans in default, South Carolina still ranked somewhere in the middle of the mortgage delinquency rate ranking nationwide. But the state’s ranking increased slightly the second quarter.

South Carolina ranked 16th in mortgage delinquency rate and 19th in foreclosure starts.

Analysts said that what is happening in South Carolina is mirrored in other areas in the country. They blamed the unabated unemployment problem as the major factor driving foreclosures to the ceiling. They believed that the recovery of the housing market lies on the drop in unemployment numbers.

According to industry analysts, some areas in the country that were hardest hit by the foreclosure crisis are already seeing some improvements in their housing market and local economies. But they pointed out that in the case of South Carolina, it would take longer for the state to see a drop on its foreclosure rates and improvement on its economy. This is because the state has the fourth highest unemployment numbers in the country and recession came in late on the area.

The sharpest increases in bidding frenzies have been occurring in markets battered by foreclosures, short sales and sharp home price declines, but which are still considered attractive markets or great places to live despite the prevalence of foreclosures.

Among these are Fort Myers, Phoenix and Los Angeles. These cities comprise metro areas that occupy top rankings in charts of metro area foreclosure rates in the first 6 months of 2009, based on a nationwide survey of foreclosures.

In Fort Myers, according to real estate businessman Denny Grimes, a total of 4,200 homes were released to the market in February at prices below $100,000, creating bidding frenzies. According to Grimes, oftentimes banks offer their real estate owned foreclosure homes at irrationally low prices to attract buyers.

He also said that currently about 2,000 homes are available for sale in Fort Myers. The median price in the area has fallen to about one-third of the median price during the housing boom.

Grimes expect Fort Myers realtors to sell more properties this year than in the past years because of the attractive prices. He said that oftentimes investors with cash offers have been getting all the bank-owned homes even if their bids are lower than those offered by first time homebuyers and retirees.

He said that most bidding frenzies occur in price levels below $150,000. Homes priced around $300,000, which are often the prices for move-up homes, are the ones not moving. High-end homes continue to be stagnant because many sellers are holding out for price increases.

In Phoenix, homes priced under $150,000 have been getting multiple bids and cash offers even on the first day. But the cash offers have been winning even if they are lower bids because sellers prefer not to be bothered by mortgage financing and strict appraisals.

In Los Angeles, where home prices have gone down by 35 percent from their peak levels in 2006, renewed interest from buyers have sparked bidding frenzies. In the area covered by Los Angeles, Santa Ana and Long Beach, home prices have fallen to $303,500 in the first quarter of 2009, a decrease of nearly 49 percent from the record high of $593,600 in 2007.

After news of the planned acquisition spread, stocks of BB&T Corp. rallied on Wall Street as investors expected BB&T to acquire Colonial’s deposits at a discounted price.

Colonial BancGroup runs 355 branches in Nevada, Florida, Alabama, Georgia and Texas and holds over $25 billion in total assets. It has been the largest U.S. bank to fail so far this year. It was founded in 1981 by its CEO and president Robert Lowder.

BB&T runs 1,505 branches in 11 states and in Washington, D.C. and holds $152.4 billion in total assets. It is considered among the country’s stronger regional banking firms. It was one of the 19 banks that underwent the Federal Reserve stress test and it was one of the few which were not required to increase their equity capital.

BB&T received a total of $3.1 billion from the federal Troubled Asset Relief Program, but it was able to pay back the full amount in June.

According to bank officials, Colonial has been battered by the foreclosure crisis, with soaring foreclosures on commercial mortgage loans it provided in Florida and in Nevada.

Last week, Colonial officials said the bank is being investigated by the Department of Justice for the alleged accounting violations of its mortgage warehouse lending operation in Orlando, Florida. Other news items also reported that Colonial was being investigated by the Securities and Exchange Commission for its loan loss reserve accounting practices and its effort to ask for federal bailout money.
Colonial also announced that it has informed the SEC it will not be able to submit its financial report for the second quarter because of ongoing investigations on its accounting practices.

Meanwhile, the Alabama Banking Department has confirmed it has held a meeting with top Colonial officers. Last month, the department ordered Colonial to submit a detailed plan on how it is going to build up its deficient capital reserves.

In addition, Colonial’s troubles increased when a Miami federal court moved to freeze $1 billion worth of Colonial BancGroup’s assets to respond to a lawsuit filed by Bank of America to protect its loan funds held by Colonial. BofA alleged that Colonial refused to return the loan money it held for BofA after a mortgage loan transaction was canceled.

One of these nonprofit agencies is the American Canyon Family Resource Center. Officials at the center said that it partnered with other agencies in an effort to provide relief to unemployed residents.

The American Canyon Family Resource Center launched two programs designed to help residents deal with unemployment and to overcome its effects. Sherry Tennyson, executive director at the center, explained that one program is designed to provide help to women in starting their own businesses. The other program aims to help struggling residents achieve financial stability.

In June, the unemployment rate in American Canyon increased by 14.3 percent from May’s 13.6 percent. Unemployment rate in Napa County reached 8.8, with the highest rate of 14.7 percent posted in March.

Tennyson said that the figures showed that 800 people are unemployed in the American Canyon, about 20 percent of the total population. She pointed out that majority of jobless people in the city were those who used to hold entry-level positions that provided low pays.

According to industry experts, entry-level jobs are starting to dry up with the shut downs of many local retail centers in the area, including Linens N’ Things and Mervyns. They pointed out that the increasing unemployment is the major factor driving up the number of bank foreclosed houses.

Meanwhile, being one of the city’s main nonprofit organizations, the Family Resource Center deals with a growing number of clients who came in looking for assistance, from utility bill payments to food. Tennyson noted that people who are in need of help keep coming in despite the dwindling funds received by the organization.

The Family Research Center has partnered with several organizations for job-related workshops. Tennyson explained that Family Research Center and United Way created a project that provides workshops, placement, job development and resume writing.

Additionally, the center also set up the Women’s Initiative for Self Employment which offers workshop to help women start their own businesses.

Under the SparkPoint program of the United Way, the Family Resource Center offers free services such as credit repair, foreclosure assistance, job placement and financial coaching.

Industry experts predicted that unemployment will be the major factor that will fuel the second wave of foreclosures not just in California but in the entire country.

In July the previous year, foreclosure filings were made on 226. Industry analysts said that last month’s increase in foreclosure filings is expected to fuel foreclosed home for sale activity in the county in the coming months.

They said that the increase in foreclosure filings in Shasta County reflected the state and national trends of last month. Foreclosure activity in July increased despite state and federal efforts to prevent the spread of the foreclosure crisis.

Nationwide, foreclosure filings rose to 360,149 or 7 percent in July. The July figures were the third time this year that filings rose to a record number.

Statewide, foreclosure filings were posted on 108,104 distressed properties, a surged of 7 percent from June.

Meanwhile, notices of defaults were issued on 217 homeowners, representing an increase of 26 percent. Default notices are the initial stage of the foreclosure process. Last month, new bank foreclosure homes totaled 90 in Shasta County, an increase of 63 percent compared with June.

Industry analysts said that the 15.3 percent unemployment rate in the county in June fueled the current flood of foreclosure filings. They pointed out that many homeowners lost their source of income and they do not have enough home equity to refinance a loan, adding that many of them ended up with foreclosure houses.

Analysts also noted that unlike the first wave of foreclosures in which most homeowners took out subprime loans, the current distressed borrowers hold fixed-rate loans.

According to market data, Shasta County accounted for 120 bank foreclosure homes on the market, while 233 more properties are listed for short sales. All in all, there are 353 foreclosed home for sale in the county, making up a quarter of the area’s entire inventory of houses for sale.

But analysts suggest that there may be more bank foreclosures for sale. They explained that many foreclosed properties were not marked as real-estate owned by banks.

Other California counties that experienced a surge in the number of foreclosure filings last month were Tehama and Siskiyou.

She has requested troubled borrowers from her district to share their stories about their dealings with banks. Distressed homeowners could also ask Titus’ office to negotiate with lenders on their behalf.

Titus wants to determine which loan providers are helping homeowners in Southern Nevada and which are not responding to requests for help. On her Web site, Titus said that she believes that it is important for lenders to communicate with their distressed clients. She promised distressed homeowners that she will do her best to encourage lenders to talk to them.

According to industry experts, many troubled homeowners in Nevada have experienced difficulties with lenders who refused to workout solutions that could save their houses from foreclosures and make them stay in their properties. There were also complaints against lenders who simply ignore calls for help from troubled homeowners.

The same scenarios are also being played out nationwide, as hundreds of distressed homeowners complained of being mandated to submit volumes of documents only to wait for a response that often do not come until it is already too late to save their homes from foreclosures.

Earlier last week, the Treasury Department released a report about the progress of the Obama Administration’s Making Home Affordable program and how well participating lenders respond to modification requests from homeowners.

The program was launched by the Obama Administration in March to help reduce the number of foreclosure properties across the country. Under the program, the federal government provided $75 billion incentives to encourage lenders to modify bad loans to make them affordable. For each loan modified, the bank will be given $1,000 and more incentives are in the offing for lenders that succeed in stopping foreclosures.

The Treasury report showed that out of the 1.4 million modification requests since March, banks were able only to help 400,000 and of these figures, 230,000 modifications are under way.

For her part, Titus has made foreclosure prevention the top program of her office. And monitoring loan servicers who are not doing their part in helping distressed homeowners is just a start of her foreclosure fight.