The subdivision, located at the former Eagle Mill site, was turned over to the bank after its developer, Firmitas Developments defaulted on an almost $6 million loan. When the developer turned over the property to Sun Trust, it turned its back on a development plan that includes a 290-unit subdivision in Eagle Park. The development has no more than 20 percent of lots built out.

According to industry experts, the development company also canceled previous plans for a mixed-use project with 675 units on Cramerton’s Lakewood Golf Course in 2008. Instead, the company chose to sell the property to Gaston County which plans to build a new high school on it.

At the Eagle Park project, about 34 single family houses and 16 townhomes were not affected by the foreclosure crisis. This is because these properties were completed, sold and still have occupants.

Meanwhile, the J.C.B Urban will start construction work on two lots in Eagle Park. Under the plan, Sun Trust will sell the lots to developers. Industry experts are hoping that improvements in the housing market would propel the development project to become a success. They said that the market is currently very soft and susceptible to both internal and external changes.

The Eagle Park was started in 2004 when former R.L. Stowe Mills Inc. Chief Executive Officer Hardin Stowe sold it to Graham Development Inc. President Tom Graham. On his part, Graham partnered with other individuals to construct and develop a traditional neighborhood enclave in Belmont.

The development project was marketed to employed people in Charlotte during the boom of the housing market from 2006 to 2007. Homes that can be found on Eagle Park come in various prices, including $140,000 for a townhouse and $500,000 for a single-family home. However, since the housing market collapse, houses priced at equal or more than $300,000 are having difficulty finding buyers.

In September, the foreclosure crisis in Gaston County became worst, increasing by 9 percent compared with the previous month and almost 46 percent from the same month last year.

While foreclosures slowed in their impact on new home construction, they pushed down rents in multifamily properties in the third quarter of this year.

In the Dallas metro area in the third quarter, housing starts grew by 32 percent to 4,194 units, compared to the previous quarter, but still below by almost 16 percent compared to the same quarter last year.

Housing starts in the third quarter also showed improvements over previous quarters as year-over-year declines since 2006 ranged from 2,000 to 3,000 units.

Residential Strategies partner Ted Wilson said that new homes priced below $200,000 are the ones having the fastest growth, increasing by 40 percent compared to last year. Home builders credit the federal tax credit as a major factor for the increase.

The median sales price for new homes still dropped, falling by nearly 2 percent to $204,031 compared to $208,033 in the third quarter last year.

The supply of developed lots for home building also dropped by almost 4,000 lots to 88,592, indicating that builders have been making a dent on the inventory of vacant developed home lots.

On the other hand, while Dallas foreclosed homes slightly slowed in their adverse impact on new home construction, they contributed to the drop in rents in the Dallas-Forth Worth area.

In the third quarter, effective rents dropped by 3.5 percent compared to rents during the same quarter last year. Throughout North Texas, the average monthly rent has fallen to $749, based on data from MPF Research.

Rental occupancy rates also dropped from 90 percent during the previous quarter to 89.8 percent, with total inventory of 578,600 rental units.

Housing analysts say that home affordability has been contributing to the drop in rents across the country, including North Texas. Renters have been moving from rental units to their own homes. Aside from affordable home prices, incentives such as the federal tax credit, have been helping renters achieve their home ownership goals.

To respond to the declining number of renters, landlords have been forced to lower their rents and to offer concessions. In the next 4 years, multifamily property owners in North Texas need to pay a total of $300 billion in commercial loans, so they need to maintain their occupancy levels and move their cash flows.

Foreclosures dropped to 3,759 units in the Valley area, compared to foreclosures in August. It was the second consecutive drop since the crisis started. Pre-foreclosures also fell, prompting predictions of lower foreclosures in October. There were more than 7,800 default notices and trustee sale notices filed, marking a drop of 11 percent from August.

Housing analysts said that loan modification efforts by nonprofits and government agencies in the Valley could be driving the decrease in foreclosures, as the federal government has been pushing lenders to step up their foreclosure prevention efforts.

Based on the Cromford Report on home price data from Mike Orr, the median home sales price in the Phoenix metro area has risen to $130,000 from $127,000 in August. Orr said that house prices throughout the Valley have been climbing up, based on prices in the Arizona Regional Multiple Listing Service that he monitors.

In another report, analyst RL Brown said that the prices of new homes in the Valley also increased. The median home sales price rose to $197,948 in September after falling to $183,750 last July, its lowest level in recent months.

In a nationwide report on foreclosures in 203 metro areas in the country in the first 6 months of this year, more than 74,000 distressed homes in the Valley including Phoenix foreclosed homes were counted. The metro area covered by Phoenix, Scottsdale and Mesa was ninth in foreclosure rates in the first half.

The same report showed that 4.44 percent of all housing units in the Phoenix, Scottsdale and Mesa metro area were in various stages of default and foreclosure. The pace of foreclosure marked a nearly 11-percent increase from the area’s foreclosure rate in the July to December 2008 quarter and an almost 52-percent increase from the rate in the January to June 2008 quarter.

Despite the increase in home prices, the pace of new home construction slowed in September after showing some improvements in recent months.

Across the Valley, a total of 696 permits were issued for the construction of single-family houses and overall home sales declined slightly compared to overall August home sales. Total home sales nonetheless still were higher than total sales in the same month last year.

With financial assistance from the Neighborhood Stabilization Program, the city will help low-income households compete with flippers in the purchase of cheap foreclosures to buy and fix.

Low-income families earning 120 percent or less of Miami’s median income are qualified to apply for assistance. If single, the maximum income is $56,640 and if supporting an 8-member family, the maximum income is $106,800.

Qualified families can receive up to $70,000 to help them buy a foreclosed house priced not higher than $236,000. The targeted properties must be located in neighborhoods most clobbered by the crisis and the homes must have been foreclosed and vacant.

Additionally, the total acquisition cost must include the purchase cost and repair costs and the properties must be purchased at a discount.

Applicants must also have stable jobs so they can afford the monthly loan payments and must first get pre-approval for a home loan. They should not be current owners of homes.

Housing analysts say that the $70,000 assistance is a substantial help to most families. They said that the amount is already enough to make a 50-percent down payment on many Miami foreclosed homes for sale.

The South Florida Board of Realtists has a similar program for African American families in partnership with the Miami-Dade County Office of Community and Economic Development.

Danny Felton, president of the Realtists, said that his organization is looking at bank-repossessed properties throughout the county. He added that there are already families interested in buying foreclosures under the partnership’s program.

In the meantime, according to housing analyst Jack McCabe and South Florida realtors, groups of flippers have been returning to South Florida looking for cheap investments that they can buy in cash.

What is heartening, according to McCabe, is that these new flippers are different from the flippers during the housing boom. Many of these new investors are committed to South Florida for the longer term. They are willing to fix the foreclosed properties before reselling them.

Many of these investors are represented by Pudlit Joint Venture which is represented by Robert Littman. According to Littman, his investors are doing what banks are not willing to do such as cleaning the houses, reroofing and fixing all defective systems of the properties.

According to industry experts, more banks and other financial institutions are expected to close their business because of the pressure of the growing residential foreclosure problem. Additionally, the commercial real estate market is also showing some signs of joining the foreclosure bandwagon as a great number of commercial loans have been delinquent.

Experts said that bank failures could jeopardize the insurance funds for deposits which were already at their lowest points since 1989.

The control for Georgian Bank has been taken by the Federal Deposit Insurance Corp. (FDIC). The failed bank has nearly $2 billion deposits and $2 billion assets, as of the 24th of July this year. Columbia, South Carolina-based First Citizens Bank and Trust Co. has agreed to handle the deposits and assets of Georgian Bank.

Meanwhile, five branches of Georgian Bank in Atlanta will operate as First Citizens Bank offices. Furthermore, both the First Citizen Bank and FDIC have agreed to equally share Georgian Bank’s losses on its estimated $2 billion assets and loans.

According to industry experts, Georgia foreclosure homes affected many businesses in the state. Georgian Bank’s failure is expected to affect the nearly $892 million federal deposit insurance money. Experts have warned that the insurance money would be badly hit the growing number of bank failures.

As of June, the insurance fund dropped by 20 percent to an estimated $10.4 billion, the lowest since 1992 during the peak of the crisis involving savings and loans. Experts said that bank failures would cost the deposit insurance fund an estimated $70 billion until 2013.

Meanwhile, Sheila Bair, chairman of the FDIC, said that she is reviewing all options to boost the finances of the insurance fund, including borrowing money from the U.S. Treasury. Other options being considered by the FIDC include borrowing from banks with healthy portfolio, collecting special fees on banks or using the agency’s Treasury credit line amounting to $500 billion.

Experts said that the increasing bank failure should not come as a surprise following the rising of Georgia foreclosure homes rates.

The project has chosen the first foreclosed home that it plans to renovate. The property is a single-family home acquired for the city by Sacramento Housing and Redevelopment Agency (SHRA) as part of the Sacramento Property Recycling Program.

The program’s fund is part of the nearly $13.2 million that the city received from the federal initiative designed to help revitalize neighborhoods severely affected by the foreclosure problem. Industry experts said that if the city could renovate these foreclosure houses and attract people to buy them, then it would mean a big help to neighborhoods in the area.

Experts said that many foreclosed properties for sale have been abandoned and remained vacant for long periods of time that they become magnets for criminals and vandals.

The first house that the city has chosen to renovate was originally appraised for about $60,000. It was foreclosed by Wells Fargo Bank which in turn sold it to the SHRA for $38,000. The SHRA plans to start rehabilitating the foreclosed houses before the end of this year and to place it on the market for sale by early 2010.

Out of the $13.2 million federal funds, $3 million will be used by SHRA for the city’s Property Recycling Program. The SHRA has partnered with for-profits and non-profits to perform the needed repairs for the foreclosed houses purchased under the program.

The remaining amount on the federal stimulus funds will be used on programs that will provide mortgages to developers who rehabilitated troubled single-family and multi-family houses for rent to families with low income.

Officials at the SHRA are hoping to rehabilitate as many as 60 foreclosure houses using the $3 million federal funds. Proceeds from the home sales deals will be returned to the program to purchase additional foreclosure houses.

Meanwhile, the county of Sacramento received nearly $18.6 million in federal housing funds. The county also plans to spend a portion of the federal money to purchase and renovate foreclosed properties for sale through SHRA.

Hardest hit in the state is the Mid-Valley region. Economic experts said that increasing the employment rate will greatly revive the economy in the region. They said that they have been witnessing signs that the languishing economy in the area will soon start to stir and show some life. Experts said that recovery means will be different from previous efforts.

The current California foreclosure homes crisis was brought about by the hundreds and thousands of homeowners who took out home loans that they could not afford to pay. When the housing market collapse, it left on its wake job losses, business failures and foreclosures.

At the start of this year, California has been in the top five areas nationwide in terms of unemployment and foreclosure rates.

A study of economic trends showed the devastating effects of foreclosures and recession on areas such as Modesto and Stockton. It noted that the recession spread to almost all community sectors.

In Yuba-Sutter, the recession resulted to the failures of retail companies Gottschalks and Mervyns and almost 20 percent unemployment rate, one of the highest among metropolitan areas in the country.

Experts said that the collapse of the housing market was so severe that they did not expect the economy to revive until 2014. Some are bullish about the regional economy, noting the cheap cost of living, incentives and available lands. They said that the region is in line to attract manufacturing jobs in the future.

City officials have decided to allot lands for industry use, which is essential in attracting new employment in the area.

Experts also said that the economic recovery will depend on events happening outside the borders of the county.

Meanwhile, experts said that if Sacramento’s economy would improve, it would entice more homebuyers in the area and could give life to the housing market in both counties of Sutter and Yuba.

For 2009, the projected number of homeowners who will go into foreclosure is expected to be over 150,000. Industry experts said that foreclosure negatively affects communities and devalue properties. It makes neighborhoods vulnerable to crime and blight. It causes business failures, job loss and homelessness.

Because of the growing Michigan foreclosures homes, state and local officials and nonprofit organizations mobilized to address the problem and alleviate its impact on homeowners and neighborhoods. They believed that homeowners can avoid foreclosure or lessen its negative effects through proper counseling.

However, industry experts said that many distressed homeowners are not aware about the free resources that are already available that can help them avoid foreclosures.

Several local organizations, such as Lighthouse Oakland, 2-1-1 and United Way, have partnered with Michigan Radio and Detroit Public Television to present public town meetings to raise awareness among Detroit metropolitan area residents about the free resources that will help them avoid foreclosures.

The series of town meetings will help homeowners who are at risk of losing their houses to foreclosures, who are in some stage of foreclosure proceedings or have been forced out of their houses due to foreclosures.

During the meetings, homeowners will have a chance to talk with counselors, lenders and local experts. The foreclosure crisis town hall meeting is scheduled on October 6 at the Westland’s William P. Faust Public Library. The presenters will be Wayne County Mortgage Foreclosure Prevention Program counselor Debbie Hostos and director Jamele Hage.

A similar town hall meeting will be held at Bloomfield Township Public Library on October 27. Lighthouse Oakland’s Financial Education and Counseling manager Greg Sterns will be the presenter.

The town meetings in Michigan are part of the Corporation for Public Broadcasting’s national initiative to alleviate and prevent the foreclosure problem. The initiative aims to use the public media to increase public awareness and gather community resources to prevent the further spread of foreclosures in the country.

The Chicago community groups in Illinois presented results of studies that showed how major banking companies, including Citigroup and Wells Fargo, created subprime businesses that focused on providing loans with high interest rates. And the target of the banks’ subprime businesses are those living in Hispanic and black neighborhoods in downtown Chicago.

The groups’ complaints prompted Illinois officials to file a lawsuit against Wells Fargo for discrimination and other lending abuses.

But industry experts said that during the peak of the housing market, the federal banking regulator refused to ensure that lenders are complying with federal laws that protect borrowers despite pleas by consumer advocates.

Last month, banking regulators reversed their hands-off policy which only resulted to a double standard. Experts said that the loans were issued by banks and their subprime affiliates. But the current process showed that only banks are facing regular federal investigation related to the growth of Chicago foreclosure homes.

Experts said that banking regulators did not conduct investigation on consumer complaints against bank affiliates. They said that federal supervision is being focused on the prime market and not on the subprime market which they claimed badly needs supervision.

From 2004 to 2007, over 1.1 million subprime mortgages were issued by bank affiliates, representing 13 percent of the nationwide data. And many of these subprime loans ended in foreclosures, leading to the housing crisis and leaving thousands of homeowners losing their houses to foreclosures.

The U.S. Congress is now considering whether to phase out the Federal Reserve. A proposal has been made by the Obama Administration to transfer the consumer protection responsibilities of the Federal Reserve to a new federal watchdog agency.

In his testimony before the Congress, Federal Reserve Chairman Ben S. Bernanke said that the agency has intensified its efforts to protect consumers by responding to problems immediately and creating new rules.

But many consumer advocacy groups believed that the federal agency has been short in its efforts to protect consumers. They pointed out that the agency’s refusal to investigate lending affiliates has prevented it from finding solutions to systemic problems.

The NSP will also help rehabilitate the homeless shelter, People in Peril. The shelter will be replaced with a triage facility that will provide alternative housing and other services for people who have no homes, according to Worcester Manager Michael V. O’Brien.

Industry experts said that it is not unusual to see homeless people sleep in vacant and foreclosed properties that are dilapidated and should be demolished. Experts said that homeless people can also be found sleeping in houses that were torn down half.

The rising foreclosure problem in the city has led officials to use the program, Buy Worcester Now to help owners buy foreclosed properties. Under the NSP, about $12 million federal and state funds will be used for over one year and a half to support the Buy Worcester Now program by helping potential buyers purchase and renovate vacant and foreclosure homes.

O’Brien said that a portion of the funds will be used by the city to demolish chronic problem foreclosure properties to give way for the construction of new houses and mixed-use developments.

The initial focus of the NSP are the areas of Main South, Chandler and Piedmont. Local officials will determine whether the program warrants expansion to other areas. Meanwhile, the city has also applied for additional federal funds of $10 million to continue the NSP program in the area.

Under the NSP, the city will partner with several private lenders and state agencies, such as the Department of Housing and Community Development and the Massachusetts Housing Partnership, to provide financial assistance to potential developers and homebuyers.

Additionally, individual homebuyers are eligible to receive as much as $40,000 for the rehabilitation of a qualified foreclosure property. Similarly, developers are set to receive about $120,000.

For the first eight months of this year, the city posted 330 foreclosure deeds. The posting of foreclosure deeds is the final phase of the foreclosure process. The figures are less than the 525 posted for the same period last year.

However, market data showed that the number of foreclosure filings rose to 828 from 656. And the city government is committed to entice potential buyers and investors to buy foreclosed properties to prevent them from becoming blights to neighborhoods.