Portland & Oregon Short Sales Keep Rising
Considering the changing atmosphere of the real estate market, as well as the new laws covering short sales and foreclosures, many realtors have returned to school to ensure that they have the correct tools and knowledge to guide their clients through the distressed real estate market. A few years ago, a short sale was unusual in Portland. Today, it accounts for the majority of real estate transactions. Residents interested in Portland Oregon short sale property should question their realtor when the time comes to understand the changing criteria of real estate investment and sales. While a good real estate attorney is essential, a well trained real estate agent is equally important.
Foreclosures and Housing Risks
In a recent study more than five hundred cities in the United States were listed as housing stressed with homeowners paying more than thirty percent of their income for housing related costs. Nevada had the nation?s highest foreclosure rate in 2009, at almost twenty-three percent. Las Vegas ranked as the fifth highest nationwide in foreclosure rates; and, it was followed closely by Phoenix, Arizona. In Florida six of its major cities are facing record foreclosures with Miami, the most populous city, taking the lead. The foreclosure rate in Los Angeles and San Diego, unfortunately brought California to the status as the fourth highest in the nation.
Recently, Bank of America and several other mortgage lenders announced that they would put the foreclosure process on hold in twenty-three states that require the approval of a judge in order to review the homes in question and ensure that they are in compliance with state laws. This announcement can affect the short sale process in these states where a seller and buyer already had to wait sometimes for months to complete the procedure.
New Oregon Foreclosure Legislation
In response to the housing crisis, during a 2010 special session of the Seventy-fifth Oregon General Assembly House Bill 3656 sponsored by Committee on Consumer Protection and Government Accountability declared a state of emergency regarding foreclosed property, was signed by Governor Ted Kulongoski on March 10, 2010, and went into effect the same day. HB 3656 provides protection to the homeowner with more than one mortgage on a property during a foreclosure in which there might be a claim by some parties involved that they were not given proper notification.
Since the housing collapse, the Oregon General Assembly has re-examined mortgage, foreclosure, and lending laws. Several new bills have passed both the house and the senate to help Oregonians find their way through one of the worst housing distress periods in recent years.
Short Sale Real Estate Agents
Since the housing market collapse in 2008, the job of the realtor has changed considerably. Some brokers have realized that they need to to learn the legal aspects of short sales. In Oregon, realtors need to understand legislation very well in order to guide their clients through the confusing details of not only the bills themselves and how it pertains to them; but, the entire short sale process.
Short sale does not refer to the length of time it takes to process the sale of the property but, rather, to the fact that the lender has agreed to take less than the value of the loan. It is, in effect a mortgage loan modification. In most cases, the realtor will have to file several requests for extensions with H.U.D. (United States Department of Housing and Urban Development) during the foreclosure/short sale process.
Buyers and sellers tend to be impatient; and, often buyers will abandon the short sale and opt to buy a house following more traditional methods. When this occurs, the entire short sale process halts and must begin again once a new buyer is found.
Cash for Keys Program
Cash for keys is getting a lot of attention in Oregon, as lenders are offering homeowners and sometimes tenants a cash settlement in order to entice them to vacate the property immediately. By circumventing the legal eviction process, the financial institution denies the homeowner/tenant due process under the law. The homeowner/tenant gives up what legal rights they might have to the property. There is no legal recourse after the paperwork is signed.
In Portland Oregon, short sales are often abandoned by buyers who have grown impatient with the process and opt to purchase property through more traditional methods. To ensure that they have the correct tools and knowledge to guide their clients through the distressed real estate market; and, considering the changing laws covering short sales and foreclosures, many realtors from Portland have opted to further their education. In a recent study, homeowners paying more than thirty percent of their income for housing related costs were listed as housing stressed in over five hundred cities in the United States.