LPS is reporting that foreclosure starts for Fannie and Freddie loans have hit a record high due in large part to loans falling out of mortgage modification programs and into foreclosure.

You can read their full report on the June data => here.

We bought a house 3 years ago in an area we wanted to move to. Then we got pregnant and stayed in our original home for about 1/2 years before trying to move. Me and our children moved to the new home and my husband stayed behind to finish some work and to keep the house in tip-top selling condition. Well, that was more than a year ago. The housing market, of course, went spiraling downward and our house is basically out of equity. We cannot continue paying the two mortgage payments. We have not, YET, been late or missed a payment, but it has put us into a lot of credit card debt because we are spending all our money paying for two houses. My question is: If we want to foreclose (or if the bank will allow us to give back the deed in lieu of foreclosure, which is supposedly less harsh on our credit) will we be able to and still keep the other home? There is no equity in that house either, but we just wonder if the bank will allow us to foreclose on one house and keep another.

In a rare bit of good news for the real estate market, Treasury department regulators reported this week that mortgage delinquencies fell for the first time in 2 years across all loan categories - subprime included.

While they also reported that foreclosures are surging, the reduction in late payers may serve as a first sign that the foreclosure pipeline might be drying up....down the road.

For now, expect the foreclosure deluge to continue - if not even gain some steam over the next few quarters.

Citigroup announced today that it will suspend foreclosure for mortgages in zip codes within 25 miles of areas affected by the gulf oil spill.

To reach CitiMortgage's dedicated team of representatives assisting with the Gulf foreclosure suspension program, call 866-219-8155 beginning Friday, June 18th. CitiFinancial customers should contact their local CitiFinancial branch or the number listed on their monthly mortgage statement.

More details here:  Citi Gulf Oil Spill Foreclosure Relief Program

Kansas foreclosures jumped 61% and Missouri foreclosures are up 25% year over year through the first quarter of 2010.  There is some good news for Missouri though.  The national average increase in foreclosure activity for the 1st quarter of 2010 was 35%, putting Missouri below the national average.

Kansas and Missouri Foreclosure Rates Increase

Businessweek reports that U.S. Treasury Department efforts to avert foreclosures are helping few troubled borrowers and sending mixed signals to lenders as the Treasury is still struggling to get its foreclosure relief programs off the ground.

For every borrower who avoided foreclosure last year through Treasury’s Home Affordable Modification Program, or HAMP, ten lost their homes.

Full story:

Treasury foreclosure relief program little help

The FHA default rate at the end of 2009 came in 9.1% versus 6.5% the year before.  While most media reports tout a recovering housing market, default rates on loans originated in 2007 and 2008 towards the end of the easy credit period are threatening to unleash another devastating wave of foreclosures.

According to the Washingtong Post, this wave of defaults could bankrupt the FHA for the first time ever - requiring tax payers to pick up the bill.

More from the Washington Post:

Rising FHA default rate foreshadows a crush of foreclosures

A management company, they can advise you on all the regulations and sort out the legal contracts etc... for you.

Let them deal with it for 6/12 months, you could then always take over the managment if you feel more confident.

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Las Vegas home prices fell 34% year over year due to the large % of foreclosures making up the bulk of sales.

Bloomberg Article on Las Vegas home prices

Current List of Las Vegas / Clark County Foreclosures and Distressed Properties

Fannie Mae has announced a new policy by which they may give homeowners facing foreclosure the option to rent their homes instead.    The new program called "Deed for Lease" will allow borrowers to transfer ownership to Fannie Mae and sign a 1 year lease with the option to extend on a monthly basis thereafter.  The program is intended to help borrowers who don't qualify for a loan modification remain in their home.

For more information on the program, visit  Fannie Mae's official Deed for Lease site