Category: General

All About Lake Oswego, Oregon real estate topics

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News & Notes – HUD Properties

HUD HomeWe’ve talked with you in the past about distressed property sales, and given you some tips on buying these unique homes; the  difference between short sales and  foreclosures, what to look out for etc.  Today I want to talk with you a bit about HUD properties.

HUD stands for “Housing and Urban Development”, as most of you know. You will sometimes see a foreclosure referred to as a “HUD Property”.  What this means is that, unlike a run-of-the-mill REO (bank-owned) property, in this instance, the home had an FHA loan that was defaulted upon. When this happens, a bank carrying the loan would file a claim with HUD.  Then HUD ends up with the property.

When you decide that you want to make an offer on a HUD property, it is wise to go in armed with some basic information.

  • First of all, your Realtor will want to check to see how long the property has been on the market.  If it has just gone on the market, you should know that the first 30 days of “bidding” are limited to Buyers who plan to live in the home, i.e. “Owner-Occupied”.  After that time elapses, if it is still on the market, it will open up for bids from “Investors” (anyone besides someone who plans to live in it falls into this category).
  • The second thing you want to do is decide whether you really want the property. If you do, then some number-crunching is in order, especially if the property has just recently gone on the market. Basically, HUD will start looking at “bids” after day 10, and these days, with the market getting more competitive, Buyers are often offering above asking price in order to compete.  Considering that the price on a HUD home is always determined by an FHA Appraisal that HUD has completed prior to listing, it might be wise to offer at least this price if the house is newly on the market, and more if you suspect there will be multiple offers. As always, discuss your options with your Realtor.
  • Speaking of this FHA Appraisal, there are significant benefits to a Buyer who secures FHA financing.  One being that the appraisal already paid for by HUD can be used, saving a Buyer $450.-$500. or more.
  • HUD homes are sold “As-Is”. Really. BUT, If you are getting an FHA loan, there are some interesting options here. If there are basic repairs they are typically noted in the FHA Appraisal, and the appraiser has already assigned a dollar-amount to each item (i.e., “needs stove”, “strap-in water heater” etc).  Taking a cap of $5,000. into consideration, these repairs can be added on to the sale price and rolled into the financing by the lender, for repairs to be completed after sale.
  • If a HUD home was built prior to 1978, and potentially has lead-based-paint, FHA will pay for a “Lead-Based Paint Stabilization Report”.  If  it is determined to have lead-based paint, however, my understanding is that the Buyer will need to do a “203-k” or “rehab”  loan in order to have the condition remediated.  Additionally, the transaction cannot “close” until the remediation paint job is approved by HUD. Discuss these potentialities with your lender rep prior to embarking down the path, so that you are prepared with “Plan B” should you end up in this situation.
  • When you have your Realtor check on status/how long the home has been on the market, etc., also make sure to ask about whether the subject property is designated as eligible for the “Good Neighbor Next Door” program. If you are employed as a teacher, EMT, police officer or fire fighter AND the HUD home is one that is eligible, you may be able to end up purchasing it for 50% of what you offer.
  • Escrow rules have changed as of January 2013.  The Buyer now selects the Escrow office/company that will be handling he transaction. This is good if you or your Realtor have an escrow officer or company that you prefer, however, please note that the Buyer also has to pay ALL escrow fees, even those traditionally paid by the Seller. Talk to your Realtor about the possibility of asking for your closing costs to be paid, and whether or not this might be a good solution for you.

As always, you’ll want to choose a Realtor who understands the ins & outs, helps you determine if a HUD property is right for you, and if so, helps you navigate gracefully around potential pitfalls.

I hope that this information has been helpful.  Granted, I just touched on an overview of things you might want to take into consideration. For more information on HUD Properties, visit: www.HudHomeStore.com . There is an FAQ section there that will answer many of your questions.

 

Very Best to you!

Linda

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News & Notes

Here is the “just-released” data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

Well, Folks… The market is definitely picking up. Just take a look at how the numbers break out below. According to the RMLS Market Action Report for the Portland Metro Area March, 2013.

  • At 1,935, Closed Sales were the best since 2007, and a 40.6% increase over Feb. 2013!
  • There were 3,002 New Listings, which is an increase of 22.4% over Feb. 2013!
  • The Average Sale Price in March was $299,000, up from $282,000 in Feb. 2013.
  • Pending Sales increased from Feb. 2013 by 23.4% to 2,628.

For our Property Blotter readers, the combined area of Lake Oswego and West Linn also reported every sales aspect improving compared to last month:

    • 435 Active Listings
    • 183 New Listings
    • 154 Pending Sales
    • 125 Closed Sales
    • An average Sale Price of $494,900.
    • Average Time on the Market: 120 Days
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Open Houses 4/7/12

There are 22 houses being held open in Lake Oswego this Sunday. Enjoy!

Address Type Price Bedroom Bath Open
4417 Thunder Vista Ln Attached $192,600 2 2 1 to 3
5056 Foothills Dr D Condo $259,000 2 2 1 to 4
15205 Boones Way Attached $309,900 3 2 3 to 5
14550 Doris Ave Detached $349,900 3 1.5 1 to 3
18357 Heather Ann Ct Detached $409,000 3 2 1 to 3
17433 Schalit Way Detached $436,000 4 2.5 1 to 3
2234 Fernwood Circle Detached $499,900 4 3 1 ro 4
4007 Bass Ln Detached $517,900 4 3 1 to 3
12723 Adrian Ct Detached $569,950 4 3 2 to 4
4121 Hedge Nettle Ct Detached $579,000 3 2.5 1 to 4
1921 Glenmorrie Ln Detached $624,000 3 3 2 to 4
3601 Red Cedar Way Detached $650,000 3 2.5 1 to 4
18460 Ray Ridge Dr Detached $650,000 3 2.5 1 to 3
17393 Grandview Ct Detached $659,900 4 3.5 1 to 3
5501 Rachel Ln Detached $699,000 4 2.5+.5 12 to 3
868 7th St Detached $699,750 4 3 1 ro 3
18383 Old River Dr Detached $850,000 4 4.5 1 ro 3
16805 Scott Ct Detached $892.00 4 3.5 2 to 4
1667 Village Park Ln Detached $899,000 5 3.5 1 to 3
12700 Fielding Rd Detached $1,175,000 3 3 1 to 3
112 Northshore Circle Detached $1,625,000 3 3.5 11 to 4
448 Country Club Rd Detached $1,695,000 4 3.5 2 to 4
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This is important because We Love LO!

In 1978 the State of Oregon mandated that individual communities develop and maintain a comprehensive plan. This plan becomes a road map for the future. How does the community support growing populations, economic development, and prioritize resources? The last time Lake Oswego updated its comprehensive plan was in 1994. With 16 years since being updated, in 2010 the State of Oregon told the City of Lake Oswego to update the comprehensive plan and gave the City 3 years to do so.

In the last 3 years over 2000 citizens of the community have participated in a lengthy process of meeting, discussing, and giving in-put as to what the vision of Lake Oswego should look like in 2035. This was a very involved process that included the school district, neighborhood associations, business associations, and open public forums. In fact, the City received the National Planning Excellence Award for Communications Initiative from the American Planning Association for this effort.

The comprehensive plan has 7 action areas:

• Healthy Ecosystems
• Community Health and Public Safety
• Connected Community
• Inspiring Places and Spaces
• Economic Vitality
• Complete Neighborhoods and Housing
• Community Culture

These action areas support a wide variety of goals. Much emphasis is placed on livability and there was a strong consensus that walking, biking, and public transportation should be encouraged. Value is placed on high-quality schools, library, and recreational opportunities. Economic diversity is encouraged and the support of local businesses is a goal.

Think about it, the gallery without walls didn’t just happen. It is something we treasure and enjoy because in the past the arts were encouraged and supported in this community.

The final step in the adaption of the comprehensive plan is now occurring. Our mayor and city council will be voting on the adaption of the final version of the comprehensive plan at the City Council meeting on April 16th. I want to encourage you to learn about the plan. The easiest way to do this is by watching this short video.

Next I want to encourage you to contact our Mayor and City Council members to support adaption of the current comprehensive plan as it has been developed by the citizens of our community. To contact our Mayor and members of the City Council click here.

There is always a bit of controversy in public planning. That is true in this instance. There are several members of our city council who are not in favor of the comprehensive plan as it has been developed. I guess it could be attributed to a general dislike of planning in general: the idea that government should be smaller and less involved. There certainly are times when I agree with that perspective. But this plan is a good one. It is a vision for the future of our City that was developed by the citizens of this City. Please encourage the adaptation of the plan as the citizens have designed it over the course of the last 3 years.

We do love our City! This vision for the next 20 years is wonderful! Get involved and please encourage the adaptation of the Comprehensive Plan.
Dianne

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News & Notes

Buyer…. Be Informed!

As Realtors, we always encourage our Buyer clients to get information “direct from the horse’s mouth”, or more accurately, to call or visit the city where one is purchasing, and talk directly to the Planning or other related department about records for the home. You can ask any number of questions and talk directly to those “in the know”. We do conduct our own research, and do get involved and assist, but I still believe the best practice is for the Buyer to get their information “direct”. That way there’s no translating involved, and nothing that gets left “un-asked” that a client might wish they had asked their Realtor to find out later on. The people at the City are really nice folks, and are there to help. If you’re looking for a home in Lake Oswego, give them a call or pay them a visit! Here’s the link: City of Lake Oswego/Planning.
.

Similarly, the Internet is a fantastic source for much of the information you want to find out regarding a home’s background, development potential, easements, past permits, lot lines, etc etc etc. There is a site called Portland Maps that can be accessed for information on Lake Oswego properties as well. This link is easy to use. Just type in the address, and voila, the aforementioned, along with demographics, crime statistics, and more is at your fingertips. Here’s the link to Portland Maps.

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Spring Around the Lake

I so look forward to spring. Longer days of sunlight, gradual warming, mowing the lawn for that first time, and the abundance of colorful flowers, it feels new everytime it happens.

I thought I’d share with you some of the gorgeous spring color, and also a poem by William Stafford. Mr. Stafford was a resident of Lake Oswego and is the City’s Poet Laureate.

Spring flowers 002

Spring flowers 004

 

 

 

 

 

 

Malheur before Dawn

An owl sound wandered along the road with me.
I didn’t hear it–I breathed it into my ears.

Little ones at first, the stars retired, leaving
polished little circles on the sky for awhile.

Then the sun began to shout from below the horizon.
Throngs of birds campaigned, their music a tent of sound.

From across a pond, out of the mist,
one drake made a V and said its name.

Some vast animal of air began to rouse
from the reeds and lean outward.

Frogs discovered their national anthem again.
I didn’t know a ditch could hold so much joy.

So magic a time it was that I was both brave and afraid.
Some day like this might save the world.

Spring flowers 001

Spring flowers 003

Happy spring,
Dianne

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News & Notes

Here is some recent data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

According to the RMLS Market Action Report for the Portland Metro Area  February, 2013.

  • At 1,376, Closed Sales were the best since 2008!
  • There were 2,453 New Listings (virtually the same as January 2013, and an 1.6% decrease from Feb. 2012).
  • The Average Sale Price in February was $282,000. Comparing the average price of $278,600 during the last 12 months ending on Feb 28th 2013, with the same 12 month period ending Feb., 2012 of $263,300, there has been an increase of 5.8%
  • Pending Sales increased from January 2013 by 11.8% to 2,130.

For our Property Blotter readers, the combined area of Lake Oswego and West Linn reported:

    • 432 Active Listings
    • 140 New Listings
    • 112 Pending Sales
    • 74 Closed Sales
    • An average Sale Price of $451,900.
    • Average Time on the Market: 157 Days
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News & Notes

Here is some recent data for you on the overall Portland area, as well as specific Lake Oswego/West Linn (RMLS lumps them together) activity:

According to the RMLS Market Action Report for the Portland Metro Area  January, 2013. At 1,344, Closed Sales were less than December’s 1,760, BUT, amount to the most Closed Sales in any January since 2007!

  • There were 2,438 New Listings (an 89.6% increase over Dec. 2012).
  • The Average Sale Price in January was $287,700. Comparing the average price of $277,000 during the last 12 months ending on Jan. 31st 2013, with the same 12 month period ending Jan. 31, 2012 of $262,900, there has been an increase of 5.4%
  • December 2012 logged 1,384 Pending Sales, while January 2013 ratcheted that up to 1906!                                                                                                                                                           For our Property Blotter readers, the combined area of Lake Oswego and West Linn reported:
    • 450 Active Listings
    • 187 New Listings
    • 130 Pending Sales
    • 79 Closed Sales
    • An average Sale Price of $480,600.
    • Average Time on the Market: 138 Days
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Lake Easements

easement_map

When buying a home in Lake Oswego, you’ll often see mention of easements as a feature of the property. Just what is an easement? Don’t all of the houses in Lake Oswego have easements?

The history of the lake easements go back many years. There was a time, in the early development of neighborhoods in Lake Oswego, when vacant lots were available for purchase on the lake. Developers of neighborhoods would buy a lot and deed it to the entire neighborhood. These “easements” are part of the recorded deeds for these homes and primarily consist of homes built between 1920 and 1970. By the time that the newer neighborhoods were being developed, houses from about 1970 and newer, there were no longer vacant lots on the lake and so easements were no longer being created. So, no, not all houses in Lake Oswego have easements. Having an easement is a special feature of the home that does enhance its desirability to buyers.

What I am discussing here are lake easements, and not the swim parks. Lake Oswego has two swim parks. One on Lakeview Blvd that is operated by the school district, and one on Ridgeway that is operated by Lake Oswego Parks and Recreation.

The lake easements have a variety of amenities. Most have a lawn area with tables for picnics. Some have boat slips and canoe racks. One has a huge enclosure in the middle of which is water trampoline. There is a good deal of variety.

There is usually a waiting list for a boat slip. Space on canoe racks is usually available at the start of the summer season.

Some homes have deeded easements privileges at more than one easement. If you are considering buying a house that has an easement, visit all of them that you may have access to and find the one you like best.

Each easement is managed by its own by laws and a volunteer board of directors. There is a designated person on the board who manages the access. If you have easement rights, contact the appropriate person on the board, pay the annual fee, and obtain a key to the entry of the easement.

If you would like to find out of a particular property has easement privileges, call the Lake Corporation at 503-636-1422.

For specific information about the easements and who to contact to activate use of an easement click here.

It may still be February, but sun and enjoyment of the lake is just around the corner.
Dianne

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News & Notes

thinkingA few tips from Linda:

* When pricing your home, please take all that your Realtor has shown you in the way of comps, and let yourself have some time to consider your options. There are various pricing strategies, but the most common one favored by Sellers is over-pricing. That is just a well-known fact to anyone in this business. It’s why, when a Realtor sells their own home, they usually ask for a reality-check from their peers : ) It’s natural, if you love your home, to believe it will fetch more than, perhaps, what your Realtor is telling you it will. It’s also natural, as the Seller, to be concerned about offers coming in below your “fair” price and therefore lowering that price… Much to your chagrin. I get it. I’ve sold my own homes too. BUT, I will tell you that, if you overprice your home, it will likely cost you money by:
– Sitting on the market too long, and giving the impression that “something must be wrong with this one”,
– Causing you to eventually have to lower the price anyway… probably lower than what you would have priced it at originally given these other factors, and the factor of time, and
– Keep Buyers away who are only searching in price ranges below your higher number.

* In a transaction where you are the Buyer, and “lender issues” are causing you to bump up uncomfortably close to your “on or before” closing date, your Realtor will most likely talk with you about writing up an addendum to “extend the closing date” to accommodate your lending timeline. You need to know though, that this is not a sure deal, and the Seller can say no. If your Seller says no, then you need to think seriously about terminating the transaction in writing before that date if you cannot “perform” (i.e., can’t get a loan).
– If your lending issues are related to you trying to get a better rate (as in… you qualified and would have closed on time, but you decided to try for a different loan package in the middle of the transaction), and your Seller does not agree to extend the date, you need to know that you may lose your Eanest Money. The contract states that you need to be able to secure a loan, so Buyers are generally protected if they can’t… BUT, not closing on time for this reason would not be related to that provision. You could secure a loan, but chose to try for a “better” one. Many Seller’s Agents will ask to see a statement from the Underwriter in these kinds of instances to check on just this kind of sticking point.
– If your loan problems are our of your hands, and you think you have good communication with the other parties, so decide not to bother creating an addendum extending the closing date (your lender could be slow, or you could really be having problems getting a loan), you could, again, potentially lose your Earnest Money, as the contract states “time is of the essence”, and in fact, that is a legal term that means that deadlines in the contract trump all other provisions. It has happened that a Buyer could not obtain a loan, had passed the closing date, and didn’t bother to get an extension addendum signed as they were still trying to make it happen & thought the Sellers were on the same page with them….. Later on, even though they really could not get funding, it was decided that the Sellers could keep the Earnest Money because there had been neither an addendum nor termination completed.

As always, Dianne and I are here for you, and would be happy to assist you in your home-buying or -selling adventure if you are not already working with another Realtor. We encourage you to listen to your Realtor. They are here to help you.
Enjoy the Oregon sunshine!