An article from CNNMoney.com, reports that the first participants in the Treasury Department's program to help homeowners avoid foreclosure include some of the nation's largest banks.  JPMorgan Chase will get up
to $3.6 billion in subsidy and incentive payments, Wells Fargo - $2.9 billion,
Citigroup - $2 billion, GMAC Mortgage - $633 million, Saxon Services - $407 million
and Select Portfolio Servicing - $376 million.  JPMorgan Chase and Wells Fargo began
modifying loans under the government initiatives earlier this month.  The plan calls
for servicers to reduce monthly payments to 31% or less of eligible borrowers'
pre-tax income or to refinance eligible mortgages even if the homeowner has little
or no equity.  The government is allocating $75 billion to subsidize part of the
payment reduction, and to provide incentives for servicers and borrowers to
participate.

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An article from EVLiving.com, reports that foreclosure activity was down significantly in March to 31% of resale homes sold from 51% in February.  Declining prices have attracted potential investors and owner-occupants, especially in the lower-income ranges.  Anticipation that home prices will rise again in the next few years is driving investment interest.  Surprisingly, the median price for a foreclosed home ($146,880) was higher than the median price for a traditional home ($127,000) last month.  "The first reason is more expensive homes continue to be foreclosed, with 15 in March, three over $2 million, and 7% of the foreclosures were in the $300,000 range," said Jay Butler, director of Realty Studies in the Morrison School of Management and Agribusiness at Arizona State University's Polytechnic campus.  "The other reason is that for the last year, slightly more than 30% of the traditional sales were foreclosed homes that were sold again with a median price markdown of 15%.  The markdown varied throughout the Valley ranging from 44% in Maryvale to 17% in Avondale to 10% in Tempe."

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