Homeowner Beware: The Return of Judicial Foreclosure in Oregon

If you’ve been reading the business news in the past couple of weeks, you’ve probably heard about Senate Bill 1552. It’s certainly garnered its share of press ink. And with good reason. As often is the case with government-imposed bank regulations, it has so far proven to be a miserable failure. The bill was intended to establish some new protections for consumers facing foreclosure by eliminating the banks’ dual-track foreclosure process (where a bank forecloses on borrowers in the midst of negotiating short sales or loan modifications) and forcing banks to meet face to face and mediate with borrowers seeking an alternative to foreclosure (such as a short sale or loan modification). Instead, HB 1552 has made a difficult and cumbersome process even more difficult and cumbersome. For many borrowers, it could also have some fairly significant financial ramifications. Unfortunately, the bill only applies to non-judicial foreclosures, which — up until this bill passed — meant most of the state’s residential foreclosure filings. Non-judicial foreclosure is typically considered a less expensive, more streamlined process than a judicial foreclosure, which is handled via the court system. Also, when an Oregon borrower undergoes a non-judicial foreclosure on their primary residence, they are protected by law from the bank pursuing a deficiency judgment (a monetary award based on the amount of the loan that the borrower defaulted on). There is no such consumer protection in Oregon for a judicial foreclosure. Not surprisingly, the banks are none too keen about participating in the newly required mediation program — it’s expensive and time-consuming. Their solution: Change the way they file their foreclosures. In a...

Foreclosure Prevention Workshops Scheduled at NeighborImpact

The influx of distressed-property housing inventory in Central Oregon may have slowed a bit, but there are still plenty of area homeowners who are struggling to make their mortgages. That’s one reason that NeighborImpact, the private nonprofit organization dedicated to serving economically challenged  Central Oregonians, offers a Foreclosure Prevention Workshop once every three weeks. The workshops are designed to address the educational needs of residents who are unable to make their mortgage payments or anticipate having trouble making their payments in the future. The workshop explains what to do if you fall behind on your mortgage payments, details the options you have if you’re unable to pay your mortgage and defines foreclosure-related terms such as “short sale” and “deed in lieu.” It also covers the basics of loan refinancing and loan modifications, outlines Oregon’s foreclosure regulations and timeline; and discusses the federal “Making Home Affordable” plan. After attending the workshop, participants can schedule an appointment to meet one-on-one with a NeighborImpact housing counselor. Both the workshop and counseling are free and open to the public; however NeighborImpact only can provide counseling to people who are at risk of losing their primary residence. For more information or to register for the workshop, call (541) 318-7506, x109; or email karenb@neighborimpact.org.  Upcoming workshop schedule: Oct. 24: Redmond NeighborImpact office, 2303 SW First St. Nov. 14: Bend office, 20310 Empire Ave., Suite 8110 Dec. 5: Redmond office, 2303 SW First St. Dec. 19: Redmond office, 2303 SW First St. Meanwhile, if you’re considering asking your bank for a permanent loan modification, check out the video below. It explains what you’ll need to know...

New Foreclosure Auction Resource for Deschutes County

Okay, all you would-be foreclosure-sale home buyers in Central Oregon, here’s a handy new resource for you. The Deschutes County Sheriff’s Office is now posting on its website helpful information about the properties it sells as a result of bank foreclosure. Each Thursday beginning at 11 a.m., the sheriff’s office auctions off properties that have been foreclosed upon. Up until now, most folks have accessed lists of the properties that will be sold by visiting the county courthouse, where the lists are posted, or via a “Notice of Sale” that runs in the local newspaper. (There are also several websites that post nationwide lists, such as RealtyTrac, Foreclosure.com and ReconTrust, which may charge you or make you jump through some hoops before sharing all the relevant information of these properties). Now there’s an online list of exactly what properties will be sold at each weekly sale that’s furnished by the source of the sale –- which, by the way, is about to not be held on the courthouse steps. As of Nov. 1, the sale will move to the county sheriff’s office (63333 W. Hwy. 20). The current list includes properties for sale on Nov. 10 and Nov. 17; it also lists the amount of any required opening bid. To find out what you’ll need to know/do before you buy a property at the Deschutes County Sheriff’s Sale, check out the website’s bidder’s page for details and suggestions. Meanwhile, if you’d like help navigating the world of the REO-purchase – which can be a daunting process to the uninitiated — please don’t hesitate to contact me. I’d be glad...

Foreclosure Inventory Update for Central Oregon

At yesterday’s staff meeting, we got a heads-up that, in all likelihood, the foreclosure picture in Central Oregon is about to change again. Earlier this year, Oregon saw a significant decrease in the number of foreclosure filings this spring. Meanwhile, the overall inventory of distressed-homes (bank-owned properties and short sales) here has decreased, buying activity has increased and the market seems to have stabilized for the summer. Now, it appears as if we can expect a large number of REO properties to hit the residential market in Central Oregon in the near future. How do we know? A quick scan of the “Upcoming Sales” on the ReconTrust website is a good indicator. A subsidiary of Bank of America, ReconTrust provides the banking behemoth with “default management services.” In other words, it handles the trustee auctions that occur after a home has been repossessed by BOA. Homes that don’t sell at auction are then listed for sale on MLS and marketed to the masses. Anyway, as of today there are 688 properties in Deschutes County scheduled to go to auction, plus 104 in Crook County, 49 in Jefferson County, and 118 in Klamath County. Add it up, and we’re potentially looking at almost a thousand new REOs out there. Another noteworthy thing to keep in mind about the upcoming foreclosures: Many of these properties have been vacant for months (some, a year or more!) –- and Central Oregon experienced a very long, very cold, very wet winter. That means that buyers of this new batch of bank-owned properties should be prepared to encounter many more maintenance issues than previous buyers...

Central Oregon’s Foreclosure Activity for December 2010

Each month, RealtyTrac keeps tabs on all publically recorded foreclosure-related activities — notices of default, foreclosure auction notices and bank repossessions — throughout the country. They also post “foreclosure home” listings -– short sales; bank and trustee auctions; and REOs, along with traditional listings across the country. They make their statistics available on their website on a state-by-state basis (which is then also broken down by county). Nevada has the dubious honor of having the country’s highest rate of foreclosure:  One in 11 homes in Nevada (more than 9 percent of its housing units) received at least one foreclosure filing in 2010. In December, 1 in every 84 housing units in Nevada (13,472 homes) received a foreclosure filing; there were 74,526 foreclosure homes for sale in Nevada in December, with an average sales price of $133,495.   RealtyTrac’s December Foreclosure Stats for Oregon: There were 28,534 foreclosure homes on the market, with an average sales price of $184,722. 1 in every 583 housing units received a foreclosure filing (i.e., default notice, foreclosure auction notice or bank repossession) in December. Multnomah County had the most filings (490), followed by Washington (423), Clackamas (338), Deschutes (312) and Jackson (199). Deschutes County update for December: There were 3,544 foreclosure homes on the market, with an average sales price of $154, 289. 1 in every 250 housing units received a foreclosure filing in December. Of the county’s 312 new foreclosure filings, Bend had the most, with 192, followed by Redmond (86), then La Pine (21), then Sisters (13). Jefferson County update for December: There were 235 foreclosure homes on the market. 1 in every 420 housing...

Highlights of RealtyTrac's Year-End Foreclosure Report for 2010

There were quite a few interesting tibits in RealtyTrac’s year-end 2010 U.S. Foreclosure Market Report, released Jan. 13. For starters, a record 2,871,891 U.S. properties received foreclosure filings in 2010. That figure shows an increase of nearly 2 percent from 2009 and an increase of 23 percent from 2008. Also worth note: 2.23 percent of all U.S. housing units received at least one foreclosure filing during 2010, up from 2.21 percent  in 2009. That’s one in 45 households. Five states — California, Florida, Arizona, Illinois and Michigan — accounted for 51 percent of the nation’s total foreclosure activity in 2010. Nevada, Arizona and Florida have the highest rates of foreclosure. One in 11 homes in Nevada (more than 9 percent of its housing units) received at least one foreclosure filing in 2010. This is the fourth consecutive year Nevada topped the list. Nevada’s foreclosure activity in December was up 14 percent from December 2009 There was some good news, too: Foreclosure filings in December, reported at 257,747, were down nearly 2 percent from November –- and down 26 percent from December 2009. That’s the biggest annual drop in foreclosure activity since RealtyTrac began publishing its foreclosure report in January 2005. States With the Highest Foreclosure Rates Nevada (9% of homes received at least one foreclosure filing in 2010) Arizona (5.72%) Florida (5.51%) California (4.08%) Utah (3.44%) Georgia (3.25%) Michigan (3%) Idaho (2.98%) Illinois (2.87%) Colorado (2.51%) Want to know what’s happening on the foreclosure front in Oregon? Here’s a closer look at the foreclosure market in Central Oregon during December. About the Author: Lisa Broadwater, GRI, CDPE is a Central Oregon-based real estate professional who specializes in listing and selling homes,...

Foreclosure Forum Scheduled in Bend

Today,  the Oregon Housing and Community Services department begins hosting a series of public forums across the state designed to determine how best to provide assistance to Oregon homeowners facing foreclosure. Recently, the Obama administration announced that Oregon will receive $88 million in funds earmarked for the creation of a program designed to help struggling homeowners stay in their homes (Oregon was included in the second round of states that will receive money from the U.S. Treasury Dept.’s   “Hardest Hit Fund”). The fund helps states  with high concentrations of people living in areas where there was an unemployment rate higher than 12 percent in 2009 (in Central Oregon, that includes Deschutes, Crook and Jefferson counties). After stops in Medford and Eugene, the forum will be held  in Bend on Thursday (May 13), from 6-8 p.m., at the Bend Community Center Community Hall (1036 NE Fifth). The final stop will be in Portland on May 19. After Oregon Housing and Community Services receives input from participants at the forums, they will submit a proposal to the U.S. Treasury (the deadline for that is June 1). The program should begin to be implemented in late summer or early fall. Here’s more info about the...
How’s the Market? A Look at the First Quarter Statistics for Central Oregon

How’s the Market? A Look at the First Quarter Statistics for Central Oregon

Central Oregon’s real estate market has been on a path toward recovery for at least the past year and a half. According to statistics gathered by MLSCO (the multiple listing service for Central Oregon), by the end of 2012, the number of Single Family Residential (SFR) sales in Bend was up 17.58 percent. By the end of 2013, SFR sales in Bend were up another 14.24 percent. In Sisters, SFR sales were up 3.16 percent by the end of 2012 and up an impressive 20.41 percent by the end of 2013. Back in 2012, Sunriver actually saw the biggest gain in SFR sales: They were up 45.92 percent. At the end of 2013, Sunriver was still improving, but at a much more modest rate (3.5 percent). Meanwhile, Redmond’s gains have taken longer to arrive: At the end of 2012, SFR sales were down 1.83 percent, but by the end of 2013, they were up 2.02 percent. Now onto the latest numbers… Which brings us to 2014. A quick perusal of the 1st-quarter statistics shows continued improvement in many –- but not all — areas. (For the numbers-minded readers, you might want to skip to the bottom of this article, where you’ll find a series of charts detailing the key categories). This quarter, it was Jefferson County that saw the strongest gains in Single Family Residential sales: Sales were up 92 percent (from 13 sales in the first quarter of 2013 to 25 sales in the first quarter of 2014). The number of SFR sales was also up significantly in Three Rivers South (50 percent, from 10 to 15 sales)....