As Foreclosures Ramp Up, New Roadblocks Ahead

CNBC.com | July 09, 2012 | 04:25 PM EDT

Fraudulent foreclosure practices, a.k.a. “robo-signing,” uncovered now nearly two years ago, opened a new wound in the foreclosure crisis that was in the process of healing.

At big bank mortgage servicers and in courts in many states, the foreclosure process ground to a halt, and the pipeline of delinquent loans swelled to historic levels. Lawsuits abounded and lengthy settlement negotiations on all levels of government began.

Nearly two years later, the foreclosure mechanism is just starting to move again.

Foreclosure starts, the first phase of the process, rose nearly 12 percent in May month-to-month, according to a new report from Lender Processing Services. Foreclosures sales, when the property goes back to the bank or to a bidder at the courthouse steps, rose 10 percent.  Read the full article here

Southern California city of San Bernardino votes to declare bankruptcy

SAN BERNARDINO, Calif. –  As recently as last month, no city in California had opted for bankruptcy since 2008, and no U.S. city of more than 200,000 people had ever chosen bankruptcy.

The past two weeks have changed all that, in a big way, as the fiscal struggles faced by so many American cities became too much for some to bear.

San Bernardino became the third California city in that small span to choose Chapter 9 bankruptcy protection with a City Council vote on Tuesday night. Read the full article here 

Key provisions in California foreclosure bill

SACRAMENTO, Calif. — Here are key provisions in California's homeowner protection bill, which writes into state law the national mortgage settlement reached with five top lenders, and expands it to all mortgages:

- Lets homeowners sue mortgage providers if they violate state law, but only if there is a significant violation. Homeowners could ask judges to halt pending foreclosures but could collect monetary damages only if the foreclosure took place.

- Requires lenders to provide a single point of contact for borrowers who want to discuss foreclosures or refinancing, with an exemption for lenders that process fewer than 175 foreclosures per year.  Read the full article here

UCLA: Housing recovery will not come in '12

Home sales are hot and the labor market continues to see steady gains, but could positive indicators like these be too good to be true, possibly a mirage?

That's what economists at UCLA concluded in their 2012 economic forecast for California and the nation, which was released Wednesday. After poring over facts and figures, they found that while key numbers appear encouraging, a housing recovery in California likely won't come in 2012. It'll be more like 2013 or 2014.  Read full article here

Foreclosures spike 9% in May

Foreclosure filings in May spiked 9% compared with a month earlier, according to an industry group.

RealtyTrac reported that 205,990 U.S. properties received filings last month, including default notices, scheduled auctions and bank repossessions, marking the first monthly increase since January.  Read full article here

U.S. unemployment aid applications rise

More Americans sought unemployment aid last week, suggesting hiring remains sluggish.

The Labor Department said Thursday that weekly unemployment benefit applications rose 6,000 to a seasonally adjusted 386,000, an increase from an upwardly revised 380,000 the previous week.

The four-week average, a less volatile measure, rose for the third straight week to 382,000. That's the highest in six weeks.

Weekly applications are a measure of the pace of layoffs. When they drop below 375,000, it typically suggests hiring is strong enough to reduce the unemployment rate.

"The trend in jobless claims suggests … that the underlying pace of employment growth has softened," said Bricklin Dwyer, an economist at BNP Paribas.  Read full article here

Foreclosure sales jump in California

Foreclosure sales were up 6.1 percent in May in California compared to April, driven by sales to third parties that were up 14.0 percent, according to a new report from foreclosure information company ForeclosureRadar Inc., of Discovery Bay.  Read the full article here