The Bend, Oregon, real estate market is struggling, according to a Sunday report in the Bend Bulletin. During the first half of 2008, 788 notifications of default were received by Deschutes County.
When a mortgage lender sends a notice of foreclosure, a notice of default is generated. When a borrower is two to three months behind on payments, lenders frequently submit notices. Lenders frequently file notices sooner when the number of foreclosures increases in an effort to reduce their losses.
In the same time frame in 2007, 192 notifications of default were submitted. Defaults have increased by 410% since last year. As more homes that are under bank ownership hit the market, prices are falling.
The Bulletin reports that 75% of the notices of default filed this year were connected to house purchases made in Bend mortgage rates calculator, Oregon, during the market’s peak years in 2006 and 2007. Not every one of these notices of default will lead to a foreclosed property. The opportunity exists for borrowers to catch up on their loan payments. If they do, the notice of foreclosure and default will be canceled.
The majority of the houses bought in 2006 and 2007 are now worth much less than they did back then. The inability to sell the house and pay down the debt prevents a buyer who bought a home during these years with little to no down payment.
Some financial organizations permit property owners to sell their homes for less than they owe on them. Loss is borne by the bank. “Short sales” are what these are known as.The lender will hold an on-site auction of the home if a debt is not brought current after 90 days of the notice of default. If the property doesn’t sell for more than the debt, the bank seizes it. Consequently, “bank repo.”
By introducing more homes with reduced prices to the market, the rise in bank foreclosures and short sales will sustain the price declines we are already seeing. Since this time last year, prices have decreased by almost 23%.
The buyer who has made an offer on a property gets impatient while awaiting the bank’s approval and decides to move on, which is another frequent reason why a short sale occasionally fails to close. Often, if the homeowner had worked with an expert real estate agent during the entire process, this second problem could have been avoided.
It’s critical to realize that novice real estate agents, sellers, and buyers may trip up particular “landmines” that would invariably thwart a good sale.
In order to determine whether a potential real estate agent has received professional training or certification and has really completed Short Sales in the past, it is best for property owners in the Bend area to question them in-depth.
Take an agent extremely seriously if they reassure you that there is an internal department that handles short sales and not to worry. The agent must be informed about the subject; otherwise, they will depend on others to do tasks, hoping that they are done correctly but having no means of knowing for sure, much like you.
The most current market data for Bend shows a little increase in the median price of homes in June 2008 compared to June 2007. However, statistics might be challenging. During that time, 22 residences were sold for more than $500,000. One of those residences cost $3,000,000. Evidently, that significantly raised the median price. Additionally, the average cost per square foot increased.
Actually, unless the number of bank foreclosures significantly decreases, our prices will keep declining. Bend foreclosures might be declining if there are fewer default notifications. There will likely be additional bank repos this year given the volume of notices of default that have already been distributed.
Sometimes, buying a bank repo is a great investment. To get rid of them from their records, the banks must sell them. Over the past few years, questionable mortgage loans were provided by CountryWide and other lenders, and now those debts are coming back to harm the banking sector.
There are many pricey properties now on the market in Bend. People won’t reduce their asking prices to the market value in order to sell their properties as long as property values are still declining.
