Distressed Homes and Home Owners

West Waluga Park
I know I wrote a post just recently about foreclosures and short sales, but a ton of new information has come to my attention. This information is really useful, so I decided to stay with the topic for this week.

Running the Numbers
I spent a little time looking more closely at just how foreclosures and short sales are impacting the market here in Lake Oswego. I easily figured out that the two types of distressed housing make up about 20% of the current listings. But what I got to thinking about was a more specific breakdown of the two, and finding out which are actually selling. Here is what I found:
* There are currently 548 properties for sale (these are including all residential: condos, town houses, and detached)
* There are currently 80 sales pending (offer accepted and in escrow)
* In the last 6 months 324 properties have sold and closed. At this rate, it will take it will take a little more than 10 months to sell the current inventory.
* There are 33 Bank foreclosures for sale (6% of the inventory), 17 are currently in escrow (21% of the properties in escrow), and 56 have sold in the last 6 months (which represents 17% of the closed transactions).
* There are 73 short sales currently in the inventory (13% of our LO market), 14 are pending sales that have not closed, and truthfully may never close (17% of the properties in escrow), and just 19 that successfully closed in the last 6 months (just 5% of actual, closed transactions).

I think I had a sense of this: that there are lots of short sales out there but that not a lot of them actually become a sold property. It is clear in the numbers. Short sales represent 13% of the inventory but just 5% of the sales. Whereas foreclosures represent just 6% of the inventory, but are 17% of the sales.

East Waluga Park

If you or someone you know is a distressed homeowner, pay attention NOW.

There is Federal stimulus money that has not yet been used. So far it feels like it’s all gone to the banks and been of little or no help to actual home owners. This is about to change. Beginning December 10th and ending in mid January, you can apply for mortgage payment help. The program is called MPA (Mortgage Payment Assistance). In Oregon 5000 households will receive help. Here is how it works. Go to www.oregonhomeownerhelp.org and apply. Applying for this help is going to be very similar to applying for a mortgage. You will have to submit bank statements, tax returns, etc. Households will be deemed qualified or not. All of the qualifying households will be entered into a lottery and names will be drawn. The 5000 house holds selected will have the Federal Government pay their mortgage payments for 12 months. The money will be considered a no-interest loan that is forgiven 20% per year for 5 years. So if you stay in your home for 5 years it will be 100% forgiven. There a lots more details, and I am not an expert. If you or someone you know needs this help, go to the website and get the information. Households can begin applying on December 10th.

I know the whole bailout is super controversial. But households in foreclosure is a tragedy that affects families, neighborhoods, and our entire economy.

Helpful Resources:
As part of my continuing education to renew my real estate license I took a 7-hour class yesterday on Short Sales and Foreclosures. While lots of good information was given out, I think I most appreciated getting come contact info for home owners who are financially distressed. Here are some good resources:
* You can find foreclosure avoidance counseling at www.hud.gov/foreclosure
* There are numerous scams preying on distressed homeowners. If you are tempted to hire services from a company who claims to be in a position to help you, check them out first by going to www.fanniemae.com/homeowners/beware-of-scams.shtm , www.ftc.gov/bcp/edu/puts/consumer/credit/cre42.shtm , or http://redtape.msnbc.com/2008/09/post.html
* Check out the Federal Government’s Making Home Affordable Program at http://MakingHomeAffordable.gov
* In Oregon check out www.foreclosurehelp.oregon.gov

Putting Things in Perspective
Every month households receive notices of foreclosure. These numbers are for the month of October 2010:
Clackamas County 1 in 402 households received this notice
In Las Vegas, in the same month, it was 1 in 6 households.

I hope you find this useful. Don’t hesitate to give myself or Linda a call if you have any questions.