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...

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...
How’s the Market? 1st Quarter 2011 Real Estate Market Statistics for Central Oregon

How’s the Market? 1st Quarter 2011 Real Estate Market Statistics for Central Oregon

COAR, our local MLS affiliate, recently released the first quarter real estate market statistics for Central Oregon, which tracks year-on-year activity from 2007 through 2011. Not surprisingly, those numbers tell quite a story -– we’ve experienced a pretty bumpy ride in the past five years. Consequently, the trajectory of sales activity during the past five years varies pretty significantly among my main three markets (Bend, Redmond and Sisters). So for those wondering, ‘How’s the market in Central Oregon?’ the answer is, it depends on where you’re looking –- and what you’re looking at. (See the stats in chart form below.) But before we take a closer look at the most recent activity among Residential and Residential With Acreage listings in Bend, Redmond and Sisters, let’s recap for a second to answer a question that I’m often asked: When did the market peak in Central Oregon? The answer isn’t as simple as you might think. First of all, you have to define what you mean by “peak” — in many instances, the year that saw the highest total number of sales was not the same year that experienced the highest average sales amount. So, for example, first-quarter sales peaked in 2004 for Sisters Residential with Acreage listings (13 sales), while first-quarter sales peaked in 2005 for Sisters’ Residential listings (33), along with Bend’s and Redmond’s Residential with Acreage listings (84 and 30, respectively). It wasn’t until 2006 that first-quarter sales peaked in Bend’s and Redmond’s Residential listings (485 and 257). It was 2007, however, that saw the highest first-quarter average sales amount in most of our markets (Bend’s Residential listings...

FHA Extends its Waiver of the Anti-Flipping Rule

Thanks to mortgage consultant Mitch Wilcox for the following update: The Federal Housing Administration has extended FHA’s temporary waiver of the agency’s “anti-flipping” rule.’ As a result, lenders will continue to allow the waiver for the 30 Year Fixed FHA program. With certain exceptions, FHA regulations prohibit insuring a mortgage on a home owned by the seller for less than 90 days. Early last year, FHA temporarily waived this regulation through Jan. 31, 2011. Earlier this week, FHA posted a notice extending the waiver through the remainder of 2011. This action will permit buyers to continue to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties or properties resold through private sales. It will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities. The extension is effective through Dec. 31, unless otherwise extended or withdrawn by FHA. All other terms of the waiver will remain the same. The waiver contains strict conditions and guidelines to assure that predatory practices are not allowed. To protect FHA borrowers against predatory practices of “flipping” (where properties are quickly resold at inflated prices to unsuspecting borrowers), this waiver continues to be limited to those sales meeting the following general conditions: All transactions must be arms-length (no family-to-family sales, for example), with no identity of interest between the buyer and seller or other parties participating in the sale. In cases where the sales price of the property is 20 percent or more above the seller’s acquisition cost, a property inspection report is required. In cases where the sales price of the property is 50...

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,...
Tumalo, Oregon Real Estate Market Report for October 2010

Tumalo, Oregon Real Estate Market Report for October 2010

Plenty of interesting twists in the Tumalo real estate market last month. After experiencing a sharp increase in September (from $650,000 to $699,000), the median sales price of Active listings in Tumalo decreased a bit in October, to $680,000. That’s still significantly higher than the median list price that held steady all summer ($650,000) and probably much higher than is likely to move many of these listings — the median price for the 56 Residential with Acreage listings that sold in Tumalo as of Oct. 31 is $340,625. That low number (which will probably come as a shock to a lot of Tumalo sellers) reflects the fact that 23 of the 56 sales –- more than 40 percent — were for less than $300,000; not a good sign for 25 percent of the current sellers, whose properties are listed for more than $1 million. Another factor bringing down the median sales price: 20 of the 56 sales this year were distressed properties: 18 bank-owned properties and 12 short sales. On the positive side, although the number of Closed sales in Tumalo was down this month (from seven to two), there are Three Contingent sales and six Pending sales, so it’s likely that November sales will bounce back (last year showed a similar pattern). Also, the number of Active listings decreased (from 83 in September to 76), as did the overall inventory (from a 16.06-month supply in September to a 14.5-month supply in October) and the number of million-dollar listings (from 26 in September to 21 in October). Meanwhile, the overall picture in Tumalo for October 2010 compared to this...