Home values could surge 35 percent without stretching housing affordability, says a vice president with LPS Applied Analytics.
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Short sales surged in 2012 to a level that was nearly triple the amount of foreclosures.
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More homeowner associations are putting the brakes on foreclosure auctions of delinquent home owners and encouraging short sales instead.
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Mortgage rates inch down this week, giving housing a boost leading up to the spring home buying season, Freddie Mac reports.
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Home owners who faced a wrongful foreclosure will receive compensation from lenders beginning in April.
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The number of U.S. homes in the foreclosure pipeline contracted in January, marking the 15th straight month of annual declines.
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