Bankers shift from foreclosures to short sales

By John W. Schoen, NBC News

 The pace of completed home foreclosures slowed a bit in August nationwide, as banks increasingly turned to so-called short sales to avoid the lengthy process of seizing, maintaining and selling properties.

The pace of home seizures still varies widely on a state-by-state basis. Illinois had the highest foreclosure rate in the nation last month at  roughly one out of every 300 homes in some stage of the process, with both foreclosure starts and completions rising. Florida, California, Arizona and Nevada were also among the top five states with the highest foreclosure rates in August, according to the latest figures from RealtyTrac, a research firm that tracks foreclosures.

As the pace of home seizures eased, foreclosure starts across the country edged up 1 percent from July, to about 99,000. But that pace is still 13 percent lower than August last year, according to RealtyTrac. The wide variation reflects both the regional nature of the housing bust and differing state laws governing the foreclosure process. Some states have passed laws that have slowed the process.

The foreclosure process slowed sharply in many states that require courts to review home seizures after a barrage of legal challenges to the process lenders use to seize homes. As those backlogged cases work their way through the system, in states like Florida and New York, the pace has picked up again. In many so-called non-judicial states, like California and Arizona, where there have been fewer cases backlogged, the number of foreclosure starts has declined.

Mortgage rates unchanged, still near record lows

By MARCY GORDON, Associated Press

WASHINGTON -- The average rate on the 30-year fixed mortgage held steady this week, staying slightly above the lowest level on record. Low mortgage rates have aided a modest housing recovery.

Mortgage buyer Freddie Mac said Thursday that the rate on the 30-year loan was unchanged at 3.55 percent. In July, the rate fell to 3.49 percent, the lowest since long-term mortgages began in the 1950s.

The average on the 15-year fixed mortgage, a popular refinancing option, slipped to 2.85 percent, down from 2.86 percent last week. That's above the record low of 2.80 percent.

Cheap mortgages have helped lift the housing market. Sales of new and previously occupied homesare well above last year's levels. Low rates have also allowed people to refinance, which lowers monthly mortgage payments and helps boosts consumer spending.

Home prices are increasing more consistently this year, largely because the supply of homes has shrunk while sales have risen. And the number of Americans who owe more on their mortgages than their homes are worth declined in the second quarter.

Still, the housing market has a long way back. Home sales are below healthy levels. And many people are still having difficulty qualifying for home loans or can't afford larger down payments required by banks.

Mortgage rates are low because they tend to track the yield on the 10-year Treasury note. A weaker U.S. economy and uncertainty about how Europe will resolve its debt crisis have led investors to buy more Treasury securities, which are considered safe investments. As demand for Treasurys increase, the yield falls.

To calculate average rates, Freddie Mac surveys lenders across the country on Monday through Wednesday of each week.

The average does not include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for 30-year loans was 0.6 point, down from 0.7 point last week. The fee for 15-year loans was changed at 0.6.

The average rate on one-year adjustable rate mortgages was steady at 2.61 percent. The fee for one-year adjustable rate loans also was unchanged, at 0.4 point.

The average rate on five-year adjustable rate mortgages fell to 2.72 percent from 2.75 percent. The fee declined to 0.6 point from 0.7. 

Celebrity Real Estate: Johnny Depp buys home for ex

By Staff, Zillow

Celebrities don't always play by traditional rules when it comes to real estate. Johnny Depp bought a home for his ex and star couple Sarah Jessica Parker and Matthew Broderick have listed a townhomefor sale they never lived in.

Johnny Depp bought this gorgeous Spanish-style home for his ex Vanessa Paradis.

When it comes to breakups and sharing the treasure, Johnny Depp is no pirate.

According to the New York Daily News, the 49-year-old Depp has made real good on his good-guy image by purchasing a Hollywood Hills home for his former partner, Vanessa Paradis.

The “Pirates of the Caribbean” star has netted more than $300 million for his box-office-smashing film work, according toCurbed, so the $4.4 million sale price won’t put a dent in Depp’s stash. Still, the gesture goes a long way to preserving the peace between Depp and Paradis, 39, the mother of his two children, 13-year-old Lily-Rose and 9-year-old Jack.

The 5,800-square-foot home is nestled on a wooded lot of the Hollywood A-lister retreat off Mulholland Drive. Along with 5 bedrooms and 5 bathrooms, the Mediterranean spread earns its “wow” factor from the exposed wood beams, the masterful tile work and swimmer’s pool and spa.

Paradis and Depp were never married, and their relationship officially came to an end after they moved from France to Los Angeles last year. The couple previously lived in a home in suburban Paris, on an estate in the south of France and on Depp’s own island in the Bahamas.

Cities with the most homes in foreclosure

By Samuel Weigley, Alexander E.M. Hess & Michael Sauter, 24/7 Wall St.

In the second quarter of 2012, there were 986,355 completed home sales across the United States, according to RealtyTrac. Of those, 22.8 percent were “foreclosure sales,” which means that homes were either actively in default and in the foreclosure process, or the home already had been foreclosed and belonged to the bank at the time of the sale. While the average price of a nonforeclosure sale was $249,090, the average price of a foreclosure sale was $170,040, a 31.8 percent discount.