Portland Foreclosures are Down, But Not Out
“Underwater” sounds like a nice place to be during this Portland heat wave, but if you’re a mortgage holder, that word is enough to give you the shivers on even the hottest day.
Fortunately, the latest data from RealtyTrac shows that foreclosures are down. In May 2105, the number of properties that received a foreclosure filing in Portland was 42% lower than the previous month and 11% lower than the same time last year.
The Portland foreclosure rate has a cause-and-effect relationship with home values, the economy overall, and the rate of short sales.
As home values go up, home owners are floated above water — the value of their mortgage is no longer higher than the value of their home.
Still, some properties that were purchased at the height of the market may take years to float above water. Because short sales can prevent foreclosures — if the bank is willing — they are often the best route for underwater home owners to take. In a successful short sale, the bank or lender forgives any debt over and above the sale price and the homeowner walks away debt-free.
Although the current foreclosure rate was down to just 1.17 in April 2015 (half a percent lower than this time last year) according to another report by CoreLogic, there are still hundreds of homeowners in the Portland are in a “pre-foreclosure” state. In other words, they are more than 90 days delinquent on the payments and the bank could start the foreclosure process at any time. This number has fallen from last year but still hovers around 3% of all home owners.
That means Portland home buyers still have short sales to choose from should those lenders opt to allow a short sale on the home.
Whether you’re a buyer or seller, having an experienced, Certified Short Sale Agent on your side during the process can make all the difference. Short sales can take months to complete and involve a mountain of paperwork, and can stump even the most determined newbie agent.
Thanks to the hard work of lenders, home owners and Portland real estate agents, successful short sales have contributed to the drop in foreclosures in the Portland area that we’re now seeing. The team I work with has successfully closed over 1,000 short sales, and we can help you with yours. Check out my short sale services and don’t hesitate to call me with any questions you might have about the process!