Monthly Newsletters

Hi everyone!

Well summer sure has reared it’s head in the past few days.  The 100 degree weather makes me think it is mid-July and time for the County Fair instead of the end of June. There must be lots of fires around here today as the sky is very hazy and brown.  I remember those years not too long ago when the Biscuit Fire was burning and the sky was dark brown and the sun was red.  It seemed like I was showing lots of property to out-of-town clients at that time and doing the best I could to paint a picture in their minds of what a beautiful valley this was even though they couldn’t even see the West hills due to the haze.  Hopefully that is not what is in store for us again this year.

It seems that the most common questions that people are asking these days have to do with short sales, foreclosures and REO’s.  Here is some information to help you with the questions.

Short sale:  This is a home that is in the pre-foreclosure status.  It is considered a short sale when a homeowner sells their home for less than what is owed on their loan.  The lender(s) must agree to accept the sales price as payment in full.  The seller will typically take a hit on their credit of approximately 40-60 points.  This can make a big difference in an interest rate that they would qualify for if they chose to buy using credit.  To sell a home in a short sale procedure your agent needs to know how to prepare documentation for a lender that qualifies the home to be sold as a short sale.  We have a big checklist that we go through with you to see if you qualify for this option.

Foreclosure:  This is an actual event more so than a process.  Foreclosure is what happens to a property when it has not sold during the six month time frame (Oregon) that it takes a bank to foreclose on a property.  There is a redemption period that the property can be brought current by making all back payments and paying all the legal fees and late charges.  If the owner can do this they can retain the home and stop the foreclosure process.  If this does not happen the property will be auctioned on the courthouse steps.  If sold there, it will be considered a ‘foreclosure’.  If you are interested in purchasing foreclosures on the courthouse steps we can go through the process with you, tracking the properties with you and being ready at the courthouse steps with what a good price might be for your specific property. 

REO: This stands for Real Estate Owned.  It is a banking term that indicates the bank is no longer lending money on this property; instead they now own it.  This is not the place the bank wants to end up.  This means that the property could not be sold or redeemed by the owner and the bank is now the owner. They will then list the property with an agent to sell.  If a property ends up at this point the owner will have taken a hit on their credit for 100-120 points and it will stay on there for a longer period of time.  Some experts say between 7-10 years.  It will be interesting to see what the lending institutions in do over the next few years with a large population segment who will have significant credit issues and therefore be unable to afford to borrow money from them.  As your agents we know how to navigate through an REO sale.  We know the ins and outs of getting items repaired and what a lending institution might like to see in an offer.

If you could use some help navigating through this market of short sales, foreclosures and REO’s either as a buyer or seller please don’t hesitate to call.  We are glad to guide you and educate you all along the way.  We are creative problem solvers and work through difficult situations with kindness and compassion. 

Thank you for the business!

Ron and Chris Converse, Marsha Skudlerick, Amanda and Steve Miller