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VISIT US ONLINE @ DSNEWS.COM Massachusetts rank: 32 90+ Day Foreclosure Unemployment Delinquency Rate RateRate may 2012 3.37%2.48% 6.0% year ago 3.44%2.57% 7.4% percent point change -2.0% -3.5%-18.9% Top County BERKSHIRE COUNTY 90+ Day Delinquency Rate Foreclosure Rate may 2012 3.17%3.78% year ago 3.66%3.28% percent point change many astute investors acquire REOs that can turn a positive rental income in the short term with a longer-term exit strategy to sell for a profit when home prices appreciate. Pro Teck developed the REO-toRental Analytics Suite to support investors who are looking for tools to help them make informed decisions." Pro Teck is a Waltham, Massachusettsbased provider of residential real estate valuations. CRE Loan Values Up for Fifth Consecutive Month -13.6%15.1% Top Core-Based Statistical Area PITTSFIELD, MA 90+ Day Delinquency Rate Foreclosure Rate may 2012 3.17%3.78% year ago 3.66%3.28% percent point change -13.6%15.1% note: The 90+ Day delinquecy rate is the percentage of outstanding mortgage loans that are 90plus days delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the May 2012 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary May 2012 figures released by the Bureau of Labor Statistics. All other data courtesy of Lender Processing Services. IN THE NEWS Pro Teck Announces REO-to-Rental Analytics Suite Pro Teck Valuation Services has announced the availability of a new suite of data and analytics for assessing the value of turning REO properties into rental investments. The company's REO-to-Rental Analytics Suite provides data and analytics on REOs, market rents and yields, market drivers and forecasts, and property information to help determine which properties would be the safest, most profitable candidates for rental investments. The suite can find what the property is worth, its current condition, cost of necessary repairs, expected yields, and more. "The abundance of foreclosed homes, a 35 percent decline in home values since the 2006 peak, and a strong rental market has led investors to look at REO-to-Rental as a solid investment opportunity," said Tom O'Grady, CEO of Pro Teck. "We've seen The aggregate value of commercial real estate (CRE) loans as priced by DebtX saw both monthly and yearly increases in May, according to a company release. The value of CRE loans in May rose from 88.1 percent in April to 88.2 percent and increased from 81.6 percent a year earlier. "Commercial real estate loan prices climbed for a fifth straight month in May as underlying market conditions continued to improve," said DebtX CEO Kingsley Greenland. "CRE loan prices in May benefited from a decline in Treasury yields." In May, DebtX priced 55,510 CRE loans with a total principal balance of $765.7 billion. The loans, which collateralize 732 U.S. commercial-backed mortgage securities (CMBS) trusts, each received a DXMark, which is a price based on 10 years of data from billions of dollars in loan sales executed by DebtX. DebtX's CMBS loan pricing analysis is part of DXMarket Data, which is a subscription service that provides loan buyers with information on transactions. DXMarket Data includes five components: non-performing loan sale prices, bank watch, secondary loan market commentary, STAT INSIGHT Annual increase in home sales in the Bay State in May. Source: The Warren Group CMBS loan collateral prices, and secondary loan market liquidity. DebtX is a Boston-based full-service loan sale advisor for commercial, consumer, and specialty finance debt. The company also has offices in San Francisco; Atlanta; McLean, New York; and European offices in the U.K., Spain, and Germany. Massachusetts Foreclosure Activity Soars The Warren Group says foreclosure activity in Massachusetts skyrocketed in the month of May as banks resumed foreclosure processes. The Boston-based company found that the number of foreclosure petitions in the state more than doubled year-over-year, rising from 699 in May 2011 to 1,724 in May 2012. Petitions have stayed above the 1,000 mark in Massachusetts every month since July 2011. So far in 2012, the lowest number was recorded in January (1,333) and the highest in April (1,750). During the first five months of this year, 7,822 foreclosure petitions were filed statewide, an increase of 77 percent from 4,425 during the same period last year. With foreclosure activity no longer suppressed now that the national settlement over servicers' foreclosure procedures has been filed, the jump in foreclosure starts came as no surprise to the Warren Group. "Foreclosures are expected to rise throughout this year. We're seeing banks acting more aggressively in resuming foreclosures that were put on hold in 2011," said Cory S. Hopkins, editorial director of the Warren Group. "In order to return to a healthier market, we need these distressed properties to get cleared from banks' books. The increased activity also leads to opportunity for buyers." Foreclosure deeds (representing completed foreclosures) increased more than 32 percent to 755 in May 2012, up from 571 in May 2011. A total of 3,736 foreclosure deeds were recorded from January to May of this year, up 31.3 percent from 2,846 a year earlier. In contrast to the increases seen at other stages of foreclosure, the number of advertised auction notices actually dropped in May. There were 1,397 auction announcements during the month, down 27 percent from 1,908 a year earlier. Year-to-date auction notices have increased about 6 percent, rising to 6,974 from 6,583 last year. 91