Decreased Foreclosure Filings In Oregon

The Ripple Effect of the Government Shutdown Started to Affect Home Loans

Foreclosure filings in Oregon’s seven biggest counties decrease a whopping 42% from a year ago and 80% from the prior month. Why? Well, the foreclosure filings are likely decreasing due to the requirement of expanded mediation with homeowners prior to filing for foreclosure.

The new law requires lenders to give homeowners 60 days notice before they can file for foreclosure. While there’s not any assurance that this will decrease foreclosure filings in the long run, it has temporarily. The sixty day requirement could take a few months to catch up.

This will maintain our tighter inventory for now which will help keep up prices stable.

More of Portland’s Real Estate updates from the Real Estate Advisor himself, Rick Sadle. Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM.

Foreclosures in Oregon

7-9

Foreclosures in Oregon for May were down sharply, a drop of 38%. But could this be the quiet before the storm?

Here’s a little bit of history. Back when the foreclosure prices started, they were using a system primarily in Oregon called trustee sales or out-of-court foreclosures. When the mortgage electronic registration system scandal started, there were questions that since the transfers and ownership of loans were not necessarily recorded in the county records, the banks did not have the authority to foreclose. The banks then started using the more expensive and lengthy court process of judicial foreclosures. The judge ruled that they can foreclose, so they could. But recently, the Oregon Supreme Court decided that not all transfers and ownership of loans had to recorded in the county records for a trustee sales or out-of-court type of foreclosure to proceed. The banks then should be able to go back to using the less expensive, quicker and easier route to foreclosure.

The good news is that with the prices going up right now, the risks of foreclosure are lessened, because if the owner can make their payments and they have equity, they could sell their home. But this new ruling could somehow affect our prices.

Nearly 30% of foreclosed homes are vacant, due to all the changes in the process and the banks taking so long to foreclose.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to Real Estate advice from Portland’s Real Estate Advisor, Rick Sadle.

Follow Us!
Twitter @Rick_Sadle
Pinterest
Facebook Page

 

Copyright © 2013 Portland's Real Estate Advisory.