Archive for 'Oregon'

The Oregon Senate is deliberating on bills that would offer additional protection to renters of bank foreclosure property.

Renters are the latest unsuspecting victims of the foreclosure crisis. Some delinquent landlords do not bother to inform their tenants that the properties they are renting are under the foreclosure process. And the hapless renters would be left out in the street when served with an eviction notice.

Through these two bills pending before the Senate, the state of Oregon is hoping that these laws would give ample protection to tenants of bank foreclosure property.

The Senate Bill 952 would protect the rights of renters of bank foreclosure property by giving them increased notice, the requirement that only property owners can evict the tenants and minimum notification period.

Under the law, buyers of foreclosed properties are mandated to notify monthly renters at least 30 days before the scheduled eviction and 60 days for fixed lease tenants. Oregon Law Center’s Sybil Hebb said that the bill is necessary because the flood of foreclosures in Oregon remained unabated. She pointed out that currently, no law protects the rights of renters of bank foreclosure property.

Oregon’s foreclosure activity increased by 151 percent in the first quarter of this year which caused alarm on state officials. About 10,547 homeowners in the state received foreclosure filings, a 29 percent rise from the last quarter of 2008 and 151 percent higher from the first quarter 2008 level.

Oregon’s foreclosure filings last March reached 3,388, representing a 6 percent decline from February’s figures but still a whopping 107 percent higher from the March 2008 total.

The foreclosure problem in the state spared no one, including renters whom Hebb described have suffered from the devastating effects despite paying their monthly rent diligently.

Meanwhile, the second legislation, Senate Bill 771 increases the notification period to two months for renters who have lived in a bank foreclosure property for more than a year. The bill, which already passed the House, gives ample time for renters to find an alternative place to live.

Currently, Oregon law provides that landlords of bank foreclosure property should give a month’s no-cause notice to all renters.

Representative Wayne Krieger explained that the bill is a result of negotiations between landlords and tenants.

Despite the depressing news hogging the spotlight in various media sources regarding the current crisis hard hitting the real estate industry, the market continued to remain stable in Clackamas County in Oregon. This is more evident in the city of New Sandy where homeowners have been avoiding foreclosures through the help of realtors.

By working on new financing schemes, agents have helped these homeowners avoid foreclosures. These realtors have helped their clients obtain reliable credit sources to restructure their loans down to affordable levels. Another pathway to avoid foreclosures is to guide clients in pursuing a short sale, although both lenders and homeowners will not profit particularly if the mortgage has no more equity.

Investors and first time home buyers are satisfied with the home deals they obtained in New Sandy, getting quality foreclosed homes at less than half the price from its original appraised value. Realtors are saying that the field has become a buyer’s market with the significantly reduced prices of homes, mostly foreclosed properties that are being unloaded by banks and lenders.

First time homebuyers, or those who have not purchased a house in the last three years, can avail of the $7,500 tax credit which they can enjoy until July next year. Investors and buyers need not buy in a frenzied mode, allowing them more time to choose the right home.

According to some realtors, media have painted a very negative picture regarding the situation. This made potential homebuyers more reluctant to pursue their investments in real estate. On the contrary, realtors say that there are financial options still available in abundance in the market.

In New Sandy, loans are available from the US Department of Agriculture that can cover up to 102 percent of a home’s purchase price. Other available financing can come from Federal Housing Administration loans that require a mere 3 percent down. There are opportunities out there, realtors are saying, and they have gained more wisdom now for new investors and avoid the previous pitfalls leading to foreclosures.

Whenever people talk about investing in real estate properties, what comes to mind is how profitable it can be. If you know the tricks of the trade, you will enjoy advantages that go with knowing how to correctly invest in foreclosure homes. There are several factors to consider when deciding on the purchase of Oregon foreclosure homes.

Buyer’s or Seller’s Market?
Many real estate experts believe that timing is everything, especially in foreclosure investing. When there are more properties in the market compared to the number of buyers, then you are in luck. Market conditions like this favor investors like you. sellers will have to offer competitive asking prices to attract more buyers and you will have your choice of bargain Oregon foreclosure homes.

Home Appreciation Rates
Of course, since you are buying for investment purposes, it is only smart to check home appreciation rates. This way you can calculate how much your potential profit can be. It is not advisable to buy one of these foreclosure homes in Oregon if you found that the value of the properties in that particular area is declining steadily.

Local Foreclosure Situation
As they say, real estate is always local. Even if national foreclosures rate has soared to record levels, not all states reflect the same condition. In Oregon, the number of foreclosure homes may have increased over the past years but compared to states like Nevada and California, it is still doing well.

Considering all these factors will lead you to believe that there is no perfect time to invest in Oregon foreclosure homes but now. Buyers have the upper hand, home appreciation values remain to be positive and local housing situation is good. For more information on where to buy these real estate foreclosures, you can check out Foreclosure Deals.