Bend, Oregon Real Estate Market Summer Stays Strong…

The Duke Warner Market Trends Report for August is out and the upward sales trend has made it through the summer. As one might expect with summer being the busier selling season, the numbers for August rose slightly over the July numbers. The number of properties listed as active dropping slightly. The most active category of homes remains in the under $225,000 range followed closely by the next bracket of $225,000 -$325,000. As reported previously the competition for nice properties that are well priced in these price ranges is stout. Rarely do we submit an offer on a home in the $150,000 range and not have to compete against several other buyers. The upper reaches of the market also continue to see steady sales results which helps balance the market.


As has been the trend for the last several months the distressed property market has been dampened. Once the fuel for our newer listings this segment has now become a trickle. The newly enacted Oregon Senate Bill 1552 has effectively shut down the number of default notices being served which may have slowed down the number of homes falling into this category. The required mediation of the Senate Bill has affected the number of folks moving toward short selling their properties. Most folks in distress are waiting to see what the mediation process will bring before committing to selling their property.

From what I have observed, this segment of the market had already been in decline long before the Senate Bill was enacted. This makes for the likelihood that we are nearing the end for this episode of the housing collapse. I have no doubt that we will continue to see distressed properties on the market but the fantastic opportunities of the last few years have largely been gobbled up and finding new treasures will take more work.

If this is the end of the collapse it may be some time before we see a fully recovered market. Most folks are wary of what the next few months will bring. With the politics of an election year dominating the decision making of business owners, the lawmakers and Wall Street, it could be months before there is any clarity to where the economic markets are heading. This uncertainty continues to dampen the jobs market and saps the strength from folks who want to sell their property and move on with their lives.

Bend is showing its durability and desirability, more than once we have been presumed to be a failing community but every time our spirit shines through. The qualities that have drawn folks to Bend since long before there were saw mills and ski hills remains here today. The beauty of the river, the mountains and the dry climate will always be what endures and draws people to Central Oregon.

Summer is here and so are the June Bratton and Duke Warner Market Trend Reports…

The Bend market trend numbers have remained steady as we go over the past few months. With summer we have seen a slight increase in the number of active listings with the number of sold properties remaining consistent with the previous three months. The number of sold properties has remained fairly level over this period.

What to expect this summer?? One is that the Northwest weather rarely follows the rest of the nation; while the rest of the country swelters we have had a relatively cool summer thus far with only one week of hot weather. What is sweltering in our neck of the woods is the real estate market under $300,000. We continue to see multiple offers for good homes that are reasonably priced. Many of these homes will be tied up within a matter of days of coming onto the market. The continued pressure on the available inventory is leading to slight price increases if not when the property is listed then when a property has multiple offers.

We are also seeing a continued decrease in the number of Bank owned homes that are available. Currently in Bend (not including the outlying areas) there are 18 active listings available and 44 pending sale listings. I think we all know of several properties that are sitting out there vacant with signs in the windows and no owner insight… the dreaded shadow inventory!! So far the banks have shown inclination to move quickly to resolve issues with these properties and bring them to market. I would like to say that this all part of the plan to keep the market stable but my experience with banks/lenders would make me think otherwise. The lenders do not care they move to their own rules at their own pace. Unless they show a willingness to throw more money and manpower at the shadow homes my thoughts are that they will continue to dribble out for the immediate future.

Conversely the availability of properties being short sold remains constant with 50 homes in an active listing status, 58 are in a contingent sale status with back up offers being accepted and 79 in a pending sale status.

It will be interesting to see how Bill 1552, passed last fall by the Oregon house and senate, has an effect on the market. Designed to provide help distressed homeowners in communicating with their lender to arrive at a solution for their dilemma. The key feature of this bill is to bring lenders and homeowners together to mediate a reasonable solution for both parties.

The optimism that we have reached the bottom combined with the low inventory of desirable homes has brought an increase in the number of building permits issued for new homes. While NorthWest Crossing has been at the center of this activity for sometime we are starting to see signs of live in other sectors of town. Group PacWest has revived the eastern portion of the former Palmer Homes Gardenside neighborhood off of SE 27th Street with great vigor. Elsewhere throughout town you will see other signs of building life, nothing like we saw in the mid 2000’s, which is a good thing.

Summer is a great time to explore Central Oregon, get out there and have some fun before it is gone!! If you need a guide for Central Oregon properties do ot hesitate to contact me, I love to show what we have avaiable.

Next up is what some believe to be Central Oregon’s best season fall.

The March Bratton Report for Bend, Oregon…

The March 2012 Bratton Report for the Bend real estate market was released over the weekend. The report confirms much of what was covered in my previous blog detailing the Duke Warner Realty Market Trends Report.


Both reports show a good size jump in the number of properties sold last month, a trend that appears to be continuing into this April. The hot classes are properties priced between $100,000 and $150,000, closely followed by the $150,000 to $200,000 range. With such strong movement in the lower price range look for these trends trickle upward and help the mid range priced homes sell this summer.

Fueling much of the buying is the tight rental market for Bend homes, currently running at 4.2% according to annual rental report release recently by the Central Oregon Rental Association. This is leading to investors returning to the market to snap up good homes that are well priced. Many of these homes are distressed properties either being bank owned or homeowners short selling their properties.

Predictably this competition is drying up the inventory of available homes. As of this writing there are 32 bank owned and 62 short sale homes actively listed. It is expected that the short sale listings will increase as we march closer to the July 1st implementation of Oregon House Bill 1552.

In case you have not followed Oregon HB 1552 it is intended to end the dual tracking policies of the larger lenders. With a three month implementation window from the bills inception there is much that is not known on how this bill will affect homeowners in distress. The bill calls for homeowners and lenders to participate in mediation to arrive at a solution that will allow the homeowner relief through loan modification, short sale, deed-in-lieu and lastly foreclosure.

This bill primarily directed at Oregon’s non-judicial foreclosures. Oregon allows lenders to pursue foreclosure through non-judicial and judicial proceedings. Lenders traditionally have taken the non-judicial procedure because of its simplicity and relatively quick timeline. With the new requirements placed on lenders there is a strong possibility that lenders may now pursue foreclosure through the judicial process. This will allow lenders to retain their rights to pursue any deficiency tied to the debt beyond the foreclosure. Another benefit to the lender in the judicial foreclosure is the short notification timelines, the question will be if the procedure timelines and avoiding the mediation process will be enough to offset the 180 day “Right of Redemption” period required in all judicial foreclosures.

Either way this breaks expect to see an influx of “Notices of Default” filed before the July 1st date, this in turn should create a wave of short sale listings and a bump to our inventory. The question how big will the wave be? And how far will it travel?

February’s Bratton Market Report for Bend, Oregon Now Being Served

February’s Bratton Market Report for Bend, Oregon Now Being Served


The Bratton Report numbers for last month has the median price for a home in Bend moving up from $186,000 in January to $199,000 in February. Moving in concert with the median price is the number of homes sold last month moving up twenty homes to 134, with the price per square foot inching up as well to $111. A reoccurring number for this report is 111, in this case representing the days on the market. This number has flat lined for the time being with the same number being recorded for January. Building permits hit a level not seen since July of 2008 but still remains a weak at 28 permits.

It will be interesting to see if the number of building permits increases seasonally this year. From what I have witnessed most of the building permits have been issued for west side projects in Bend with Northwest Crossing leading the way. The price point for these new homes remains above $300,000. Given the competition we are seeing for homes under $250,000 I would not be surprised to see builders buoyed by this information and be more willing to step to shoulder the risk of building lesser priced spec homes. Some might think this would be crazy but if the opportunity to purchase a new home versus a seasoned home came up I think a good portion of folks will choose the newer product.

With 65 lots under $30,000 that have either sold or have pending sales since last March and 13 lots currently available for sale, could these lots be the basis for builders that brings new homes to the market for under $250,000?

For now the recovery continues, we will need to monitor how the incredible increases in gasoline prices effects the overall economy and the positive gains we are beginning to see. Will we see continued confidence and recovery? Or do we continue to bounce along the bottom, waiting to release the pent up demand to move forward?

Now Serving Duke Warner Realty's February Bend Market Trends Report

Duke Warner Real Estate Trend Report is now available on my web site http://www.shopbendhomes.com/ .  I should have the Bratton Report available in just a few days, once it is released.

February’s report shows that we are continuing to see a decline of available listed home. The decline this month is slight with ten fewer homes actively marketed. We actually had more new listings this February than the previous month but with the market heating up were able to sell more homes.

The competition for good homes under $200,000 is getting pretty stiff, last weekend there was one newly listed home that received 31 offers on the first weekend. Others are not quite so dramatic but still are garnering plenty of attention from potential buyers. It will be interesting to see if this new found competition will lead to an influx of traditional sellers in the spring and summer selling months that are just around the corner.

Another trend to watch that could support the thought that we have reached the bottom of this downturn is if the amount of price reductions each month continues to decrease. This number has continued to fall as sellers are coming to market with a more realistic idea of what their properties are worth in today’s market. This in turn should help sellers get there properties sold in a quicker fashion.

We are still waiting for the much vaunted shadow inventory to hit the market. Many of my colleagues are in agreement that this may not happen in great quantity here in Bend. The recent court battles over robo- signing by the big lenders has been resolved for the most part and lenders have re-filed notices of default with the county but the amount of filings are nothing like we have seen in the past few years. What we will most likely see from these new filings is an increase in the number of homeowners that attempt a short sale and eventually a few more bank owned listings.

As of this writing the current number of homes actively listed as short sales is 46. On the bank owned side our inventory is down to 33 homes stick built homes. The number of homes in the bank owned category over the past couple of years had fluctuated between the high seventies and the low nineties. The blip from homes that are currently receiving their notices of default will hit the court house steps early this summer. As this passes we may see increase in the amount of bank owned homes going into the winter months.

The wild cards to the upcoming spring and summer selling season are the Presidential elections (with all their promises and rhetoric) this fall, the forecasted higher gas prices that should affect the overall economy and the stability of the European economy. With little control over any of these, I think those of us with the means will move forward with their lives and take advantage of the favorable real estate market conditions in Central Oregon property.

If a friend or you would like a personal assistant for your Central Oregon property endeavors I am available and look forward to hearing your goals.

Real Estate Trends Report for October is Ready!!

Many are finding that in Bend it is getting harder to find the house they want at a price they can accept. October has brought the lowest inventory of Bend homes for this year. With the lower inventory we are seeing houses that are well priced with nice amenities and a desirable location being snapped up off the market quickly. We have found that buyers who think that Bend has abundance of great homes at super cheap prices are astounded by how difficult it is to find the home that they want at a price they are willing to pay.


Many of the well priced homes are seeing multiple offers, which is a welcome change for sellers. That trend is especially pronounced in the lower price range of the market with only a 2.8 month supply of homes available under $225,000 and a 3.2 month supply of priced between $225,000 and $325,000. In categories below $625,000 there is currently less than an eight month supply of homes.

The average price for a home sold in Bend for the month was $259,474 down 12% from 2009. Of those homes sold this past month traditional sales made up the bulk of the sales at 44.7%. Bank owned homes fell in behind the traditional sales at 32.1% and short sales brought up the rear 23%.

Short sales remain a headache for all involved in the process. To illustrate how frustrating the short sale process can be there are 133 in a contingent sales status compared to 6 traditional home sales and 1 bank owned. In the contingent sales status most are waiting for approval of the third party lender/investor which can take months. Recently I have been told by certain lenders that they are attempting to complete the short sales transaction in a thirty day window, I have yet to see a lender accomplish that timeline.

The bank owned properties have been the primary recipients of multiple offers with their aggressive pricing; these homes have sold 99.1% of the list price at the time of the sale. Short sales have had the next best results with a ratio of 97.8% and traditional sales seeing the larger concession in prices at 95.1%.

For a different perspective on pricing, homes continue to sell in the mid 80% range of their original list price, this trend has held true since December of 2009. What I see in this last number is that sellers are still adjusting to the realization that their properties will not fetch the price of even just a year ago.

These trends will likely continue through the winter months and into the first part of the spring season. It appears that for the lower range of the market we have stumbled to the bottom of the market. I think we will remain there for the near future and into the next year while we wait for the rest of the market to catch up and the economy continue its recovery.

Click the following link to see this month’s market trends report.

Home Tax Credit Extension Dies (for now) on Senate Floor…

Do you have a transaction that qualified for the home tax credit?


Today’s action by the senate killed a large stimulus bill which included business tax breaks, renewal of the flood insurance program and an extension of unemployment benefits. Also attached to the bill was an extension of the deadline for the home tax credit. Real estate transactions that had been in contract before April 30th have a current deadline of June 30th, the extension would give buyers until September 30th to complete the transaction.

Senate Majority Leader Harry Reid who is one of the bills biggest backers feels that the extension may survive through being attached to another bill that has a better chance of approval. Should the bill not survive as many as 180,000 transactions that have yet to close and are in danger of not qualifying for the rebate. Many of those who will not meet the deadline are tied up in a short sale transaction, which are notorious for their lengthy closings.

The failure of the bill may impact many who were counting on the credit to offset their closing costs or down payment. Those buyers could look to the seller to help offset the lose, though it may be a uphill battle if they are dealing with a large loan servicing company for approval of a short sale.

Stay tuned to see if the bill lives on…

Incentive extended to lure buyers to distressed Fannie Mae properties...

In an effort to reduce their distressed property inventory Fannie Mae announced today that it will be extending its buyer incentive program. The program offers a 3.5% rebate to those who purchase and close on a Fannie Mae owned home by June 30th. The rebate may be used toward the closing costs of the transaction, select Whirlpool appliances or a combination of the two. The program which was launched this past January was designed to help spur the sale of distressed properties reacquired by Fannie Mae. The program is offered to both first time and move up home buyers who will need to be owner occupants to qualify.
In the Bend there are currently 25 homes listed by Fannie Mae for sale, with more to come. Prices on these homes range from $39,900 to $355,000. Many of these homes will also qualify for HomePath mortgage financing or renovation financing. The HomePath mortgage program allows for down payments as low as 3 without having to incur mortgage insurance. You may use gifts, grants, loans from employers, the government or non profits to fund your down payment. Offered with reduced credit guidelines both owner occupied and investors may qualify for the mortgages but only owner occupied homes will qualify for the purchase incentive program. Fixed rate, adjustable rate and interest only loans are available through the mortgage program. Mortgage financing which includes funds for light renovation is available with the same guidelines and benefits to those properties which will be owner occupied.

This is a great opportunity if the program fits your needs and you do not procrastinate on selecting a home.

Wow how the mighty have fallen….Great Deal Near Drake Park....

This home just hit the Bend market it sold in October of 2006 for $1,475,000, today it is bank owned and offered at $600,000. This four bedroom home with 2.5 bathrooms is located near Drake Park and is situated close to all that makes Bend so special. If this is something that piques your interest call me to arrange a showing.

Yikes, since I posted this earlier today there are seven offers on this property. Moral of the story if you find something you like and it is an outstanding value be prepared to step up to the plate and make an offer quickly!

Could this be a step in the right direction….

Bank of America announced a new program that will forgive up to 30% of the principal for those owing more than 120% of the value of their home. The program is slated to start this May is in response to a settlement reached with the commonwealth of Massachusetts regarding the type of loan modifications Bank of America could make on their Countrywide portfolio. And it may be a preemptive move to the Washington State suit that Bank of America is not doing enough to modify underwater loans.


While principal reduction has been practiced sparingly on a case to case basis by other large lenders, the Bank of America program will be more wide spread, yet focused to one group of its client base. Applying to only borrowers who have loans generated by Countrywide Financial will be eligible. Of those borrowers only the riskiest loans will be considered. You know the breed; option adjustable-rate, subprime and prime loans with a low initial fixed rate then annual increases. Bank representatives say there are approximately 45,000 loans in the portfolio that qualify. The average reduction will be in the $62,000 range.

Other qualifications are similar to those for a standard loan modification, you also must have missed at least two consecutive payments and be able to demonstrate that you are in financial hardship. Ones loan must have a balance of 120% of the estimated home value.

Once you qualify the program will reduce the principal balance and place the determined amount in an interest free account. For every five year period that you make your payments the bank will forgive a little more of the principal balance until the balance has reached the 100% loan to value ratio. To protect Bank of Americas interests should the homes price recover in the fourth or fifth year to the loan balance the forgiveness to the interest free account would stop and would have to be paid off when the home is sold or the home is refinanced.

Now before you run out and call your Bank of America representative you should know that it will be Bank of America that will reach out to you should you qualify for this program. While this is not ideal it could be a step in the right direction in providing relief that makes sense.

Help is coming for distressed property owners…

Are you one of the legions who for a myriad of reasons need to sell your home and have found that your equity has evaporated? Has your lender sent a notice letting you know that foreclosure may be in your future? Have you explored your options and determined that a short sale is your best avenue of retreat? Have you dreaded the long drawn out and uncertain process of the short sale? Help could be right around the corner, that is if your loans are backed by Fannie Mae or Freddie Mac and your lender is one of those who have volunteered for the program.


The federal government’s Home Affordable Foreclosure Alternative program (or HAFA) is set to start providing relief to qualifying homeowners starting April 5 running through December 31, 2012. HAFA establishes short sale rules and incentivizes borrowers and lenders to work together to avoid foreclosure. The new guidelines will have the borrowers receiving preapproved short sale terms from their lenders before they put the home on the market. The predefined steps will make the process easier to understand for all involved in the sale.

The first step is to determine your loan is backed by either Fannie or Freddie. This can be done by going to http://loanlookup.fanniemae.com/loanlookup/ or https://ww3.freddiemac.com/corporate/. If you have a loan back by either you can then apply for a home loan modification through the Home Affordable Modification Program (HAMP) http://www.makinghomeaffordable.gov/. If you are backed and you do not qualify for a home loan modification or you have started the loan modification process and have missed a payment during the trial modification period you will qualify for the HAFA program.

A few more stumbling blocks include:

• That you are delinquent or you will be defaulting in the near future,

• You can demonstrate that you have a hardship,

• The home is your principal residence,

• Your mortgage was originated before January 1, 2009,

• Your monthly housing payments exceed 31% of your gross income,

With the new HAFA rules, if you do not qualify for a home loan modification your lenders will have to offer you a short sale within thirty days. You the borrower will then have fourteen days to respond to the lenders short sale agreement.

Once an offer to purchase has been made you and your broker will have three days to submit the offer to the lender along with the buyers’ mortgage pre-approval letter. Should there be any other liens on the property you will need to include the status of negotiations with those lien holders. Once all has been submitted the lender will have ten days to approve or deny the offer.

One of the great benefits of the program is the requirement that the lenders release you from any further obligation to repay the difference between the balance of the loan and the sale amount. The ability of the lenders to pursue deficiency judgments has been a black cloud over many a short sale. Lenders (or the collection agencies that they sell the bad debt to) have the ability to pursue a deficiency judgment for up to ten years and in some cases up to twenty years. They can do this because in a short sale the terms of the loan have been modified and the foreclosure process is avoided. No foreclosure means no protect by state foreclosure statues (a discussion for another time).

To get more lenders on board HAFA provides incentives for second mortgages lien holders, up to $3000. While this may not seem like much when tens of thousands may be owed on a note it is far better than the big goose egg they would have received previously. Not forgetting the role that loan servicers play in moving the short sale process along HAFA offers them up to $1000. HAFA also offers the mortgage investors who agree to share the short sale proceeds with the second lien holder up to $1000. And last but not least HAFA provides up to $1500 to assist the homeowner in relocating.

If sounds like a good fix for you and you would like help in navigating this process, call or email me. I would love to provide you with some relief.

Will your lender be seeking a deficiency judgment against you ….

The other day I was interviewing with a prospective client about their distressed property and the options available to them. After researching their options on the internet they were confused about whether a lender has the right to pursue a deficiency judgment against them if they were to short sell their home. Not wanting to go through the ordeal of selling their home only to have the unresolved debt stall their fresh start they asked for my take on the subject.


The first recommendation was that they seek professional counsel from a qualified real estate attorney and CPA. I then shared some of the research that the Oregon Realtors legal hotline had recently provided its members. The hotline offered that currently in Oregon since the short sale of a property is a voluntary modification of terms of the loan agreement, the new agreement can contain any terms the parties agree to. In a voluntary modification like a short sale the deficiency is the unpaid balance of the note. A note holder can sue in court for the unpaid balance of the note unless the maker of the note bargains for and gets “full satisfaction” of the note. Should the borrower get only the note holders verbal agreement to waive their lien and not foreclose that would leave the borrower exposed for the unpaid balance.

To get “full satisfaction” the borrower needs to ask for it!! Otherwise the lender is allowed to waive their lien on the property, forego foreclosure and continue to hold the note as an unsecured debt. Since the note is no longer secured by the property and has become a personal debt, the lender is no longer bound by the foreclosure laws of Oregon. The lender is now free to pursue a judicial judgment for the unsecured debt. In Oregon the statue of limitations for pursuing a judgment is ten years, with the possibility of an extension for another ten years. Just when you thought you would be rebuilding your credit in the next two to four years this dog could be following you around for the next ten years if you do not ask for and receive in writing “full satisfaction” to your lien.

You like the home but wish it had newer kitchen, larger bedrooms or a newer roof….

You have been searching and have found a property you really like but it needs a little love or maybe the rooms are too small and you want to expand them to make it the home you desire. Since 1978 HUD has provide a program design specifically for the buyer who is has found a home they like but needs some immediate attention. The program is designed to help provide a loan package for you to purchase and rehabilitate a home that has been completed for at least one year. The beauty of the program is that it rolls both the purchase price and renovation costs into one loan with a down payment as low as 3.5%.


There are two versions of this program available 203(k) and the 203(k) streamline. Both offer a loan to value rate maximum of 96.5% on the purchase and 110% on the renovation. The streamline program offers fewer restrictions, in this program there is no minimum renovation expense but it does have a capped at $35,000. All properties must be appraised prior to the loan and a value must be determined for the work to be performed. All work done must start within thirty days of closing and be completed within six months of closing. If you can keep your costs down to $15,000 no inspection of the completed work is required.

There are limits to the scope of work that can performed, slab granite counter tops won’t make the grade but a new roof, new appliances, upgrades to heating/cooling systems, flooring, new windows and much more are acceptable.

Ask your mortgage broker to explain the full benefits of how this program can benefit you! If your broker is unfamiliar with the program contact me and I would be glad refer you to a mortgage specialist who is familiar with all aspects of this great program.

Up Coming Dates to Consider

Larry Wallace over at True North Mortgage sent out an email this morning highlighting some important dates some important dates for homebuyers.

March 31st: The Fed is scheduled to stop subsidizing home loan interest rates.
It is entirely possible that they will extend the subsidy, should they choose not to extend look for higher interest rates and higher monthly payments.

April 30th: Tax credit for purchasing a home. The home has to be “in contract”, (i.e. accept offer to purchase) or lose the credit.

June 31st: Tax credit for home purchase must close escrow or lose the credit.

Spring/Summer: FHA mortgage insurance will become more expensive. The effective date is still pending.

Spring/Summer: FHA to reduce allowed seller paid closing costs from 6% to 3%. This will mean the buyer needs to provide more cash at closing. The effective date is still pending.

Missing these dates will make a home purchase much more expensive, it could even leave priced out of buying a home!!

You can contact Larry at larryw@bendbroadband.com or at his office 541-323-8783

I’ve fallen, can you help me find my way!

Are you like many of my clients where the last few years have not been kind to your finances? Do you owe more on your home than what it would sell for in today’s market? Have you been exploring your options; loan modification, deed-in-lieu, short sale, foreclosure or gutting it out and wait for the market value to return? With such a dizzying array of choices, all with serious repercussions, where should you start?

Seeking the wisdom of professionals well versed in today’s ever changing real estate landscape is your best chance to make the best of an unfortunate situation. Real estate agents/brokers are on frontline in this battle and can help provide direction and insight to current market conditions but few are licensed to practice law or give financial advice. The advice of a real estate attorney and a certified public accountant is essential to mapping out a strategy that could affect your finances for the next twenty years.

While most folks who find themselves in this ever evolving nightmare cannot begin to afford a $275 an hour attorney or accountant, there is alternative help available. Here are a few contacts to start with; Legal Aid Services of Oregon, LASO, 541-385-6944 for the Bend office or visit their web site at http://www.lasoregon.org/. Another option is Free Legal Aid at http://www.usattorneylegalservices.com/; this website will refer you to LASO, but also has a lot of good resources that will help depending on what path you take. The Free Legal Aid site has good examples of a sample hardship letter, debt settlement letter and more. Last but not least there is Neighbor Impact their mission is to help the economically disadvantaged in our area. Neighbor Impact offers mortgage default counseling amongst several other financial counseling programs. They can be reached at 541-548-2380 or visit their website at http://www.neighborimpact.org/.

No matter the path you chose, start your journey by collecting and organizing your financial information. Being prepared to provide the most intimate details of your finances will lessen the stress involved in discussing and planning your exit strategy.

You will need to collect a list of your income, assets and liabilities. Two months is the standard for providing pay stubs, bank, mortgage and other monthly statements. Have complete tax returns for the last two years at the ready. In your packet include all correspondence from your lender(s) pertaining to foreclosure of your property; if you have received a Notice of Default include it too. Rounding out your information packet, draft a letter that describes why you are in financial hardship. To say that your house is no longer of the value it once was will not suffice as a reason for your hardship, though it may be a large contributor to your situation.

Mentally prepare yourself for journey of twist and turns that will take months and possibly years to complete. Be strong as all things do pass and life will get better.

First Time Homeowner Rebate Coundown

Just sixty days left before the $8000 first time homeowners tax rebate expires this November 30th. Are you in position to take advantage of this program? If not it is time to move fast before this fabulous program gone.

The program is designed to bring first time home buyers or those who have not owned a home for three years or more into the market. This program combined with ultra low interest rates and home price that are in full retreat, a new home buyer has never had it better.

"Time is of the Essence" is a common phrase in real estate but never more relevant than now with home sales transactions taking anywhere from thirty to ninety days to close. Since the banking collapse many new laws have inacted to protect consumers. These laws have added more layers to the process of buying and closing a home. Ironically these laws meant to protect may now cost many the opportunity to buy a home.

First time buyers need to have there ducks in a row. First off having pre-approval from your lender is essential. Do the research in selecting a mortgage professional, make sure that they have a history of moving quickly to get all the paperwork processed in a timely fashion.

With pre-approval in hand, time will be short to find the right property, one that meets your physical and financial needs. There are a wide variety of buying situations that may provide the timing and value you need to close quickly.

Bank owned properties offer a tremendous value, they have their quirks but generally have fewer strings attached leading to a quicker closing.

With the short timeline most short sales are out of the picture. Short sales require the seller to get the approval of their lender(s). This is a time comsuming process sometimes taking over 120 days. Once the sale has approval you will need to tack on the lenders time needed to close out the sale. Occasionally there will be short sales available that have already been approved by the lender(s) for a previous buyer who's deal fell through. These properties can provide an opportunity to buy low with out having the unbearable wait.

Probably the least cumbersome is the conventional home sale. No need to deal with the sellers lenders here.

If you are looking to purchase in the Bend market, let me be your guide.


Bill Panton
Broker, Duke Warner Realty
1033 NW Newport Ave.
Bend, Oregon 97701
bpanton@dukewarner.com
cell 541-420-6545
office 541-382-8262
fax 541-385-3272