Recent reports have shown a slight improvement in residential mortgage delinquencies during the second quarter. However, the situation has not been the same for the commercial mortgages. According to the Mortgage Bankers Association (MBA), the delinquencies of commercial mortgages packaged and sliced up into securities (CMBS) soared. They rose to 8.22% from 6.83% in the first quarter.

According to reports by Foreclosure Deals, an online leader in the foreclosed homes for sale listings and information industry, foreclosure filings for the month of August have gone down from last year’s numbers. The total  number of foreclosures in Augusts is 325,225, which represents a 10% decrease from foreclosure totals in June 2009.

Major Banks, such as Bank of America and Wells Fargo, are agreeing to allow local government and nonprofit groups to buy foreclosure homes before they are sold to private investors.

Fannie Mae’s new policy to reduce appraisal cutting took effect yesterday. What this policy will do is that when a lender is trying to sell the GSE a loan, they are now prohibited from changing the market value of a home on the request form.

As the number of foreclosures keeps growing, the opportunities for savvy investors who want to grow their portfolio of rental properties keep growing as well. Reports from RealtyTrac suggest that prices have gone significantly down in some markets, an opportunity for the so-called flippers to purchase, rehabilitate and resell properties in the short term. 

There are companies that are dedicated to manage foreclosure procedures for investors and banks. These companies handle different processes and charge fees for these services. For example, law firms that manage and process foreclosures charge a legal fee and court filing fee, among others.

“The recent bond rally is good news for the secondary market, but it may be an unsustainable trend, as analysts predict more declines in the housing industry, potentially sapping mortgage-backed bonds.“ Explains Jacob Gafney from housingwire.com.