Portland Real Estate Blog

Lake Oswego Real Estate Statistics

Rick Sadle (Keller Williams Realty Professionals) — Fri, 12 Nov 2010 05:56:14 -0800

Some interesting market stats from the Lake Oswego Real Estate Market for the period ending 11/11/2010 The average home sold for 95% of list price The average sale price in Lake Oswego is $473,349 There is currently about 7.9% months of inventory in Lake Oswego The Pending ratio is 12.7% (this means a little over 1 in 10 homes is selling every 40 or so days. See a complete list of Homes for sale in Lake Oswego. Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Finger Pointing: Investors Suing Banks?

Rick Sadle (Keller Williams Realty Professionals) — Wed, 10 Nov 2010 04:55:45 -0800

My disclaimer: I'm not an attorney or a CPA. I just do a lot of short sales and therefore have formed an opinion. And you know what they say about opinions! It seems that the finger pointing continues. . . Now some of the investors who are taking losses in short sales and foreclosures are suing the banks who originated the loans that they bought. Some investors who allegedly include Freddie Mac are suing the banks for misrepresenting the risks associated with sub prime loans. The banks contend that the investors knew the risks and that's why they were taking the kind of profits that they were. Interesting that nobody wants to pay for the rampant speculation that was going on. The investors were thrilled with the profits, the banks liked the servicing fees etc. My opinion is that money was made that was never really there. Homeowners are having to give it back in the form of their houses. Banks and investors are having to give it back in the form of short sales and foreclosures. That's it. I know everyone wants to pass the buck, but it's got to stop somewhere. Again, just my humble opinion.Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Portland Short Sale

Rick Sadle (Keller Williams Realty Professionals) — Thu, 04 Nov 2010 05:37:55 -0700

Cherry Park short sale! Sprawling daylight basement ranch with updated kitchen, hardwood floors, 2 fireplaces, manicured back yard, and more. Room for everyone! Buyer to verify all info. Full Details http://www.SEARCHINGPORTLANDHOMES.COM/listing/mlsid/210/propertyid/10039164/syndicated/1/cgltguid/6AAA8AF9-F583-4059-A56B-70F784694DE3/?ts=crg Listing Courtesy of Rick Sadle, Keller Williams SunsetCorridorRick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Short Sales and Private Mortgage Insurance Yuck!

Rick Sadle (Keller Williams Realty Professionals) — Tue, 05 Oct 2010 07:10:02 -0700

My disclaimer: I'm not an attorney or a CPA. I just do a lot of short sales and therefore have formed an opinion. And you know what they say about opinions! Private mortgage insurance (PMI for short) can be a really big road block in short sales. Sometimes it's not even obvious that there is pmi on a loan until they step in at the last moment. The problem is that the banks want the pmi coverage, but pmi doesn't have to cover losses until the home is foreclosed on. This causes the banks to ask the pmi company to allow that coverage "early" (before the home is foreclosed on). Since pmi doesn't have to do this, they usually want an incentive. This incentive is typically in the form of a promissory note or cash contribution from the seller. Since we all know that sellers in short sales don't have any money, and in some cases wouldn't owe anything if they let the home go to foreclosure, they sometimes can't or won't sign a promissory note or bring cash to closing. This whole scenario can sometimes cause a perfectly good short sale to end up in foreclosure. Who wins in this case? The bank doesn't win because they generally get 20% less in a foreclosure than a short sale. The buyer doesn't end up with the house they fell in love with. The seller ends up with a foreclosure on their record. Home prices in the area are affected by the foreclosure. The economy suffers. The only one who doesn't have any skin in the game is the pmi company. Depending on the scenario, they end up paying out the same amount either way. Their greed in wanting to get something extra out of someone who is already in distress is causing everybody else to lose. Check out one such case in an article on NPR. If you or somebody you know is in distress, please call us. 503-270-5587Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Short Sale Quick Tip #1

Rick Sadle (Keller Williams Realty Professionals) — Mon, 28 Jun 2010 07:12:08 -0700

My disclaimer: I'm not an attorney or a CPA. I just do a lot of short sales and therefore have formed an opinion. And you know what they say about opinions! Just a quick tip. As negotiations progress with any lien holder, make sure you keep moving the closing date out on the HUD. Even though we usually set our closing date 3-4 months out from mutual acceptance, sometimes negotiations can take longer than that. Approval letters are usually based on an approved HUD (estimate closing statement). If you forget to update the HUD with the new date, you can get an approval letter based on a too short closing date and with figures based on incorrectly prorated tax information etc. This would render your approval letter null and void.Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Laurelhurst homes for sale Portland, OR

Rick Sadle (Keller Williams Realty Professionals) — Wed, 02 Jun 2010 11:06:14 -0700

Laurelhurst homes for sale Portland, OR. Did you say you want vintage? Historic? Individual? In Portland, Oregon that's the Laurelhurst neighborhood. Few places in any city have the personality and stunning beauty that is provided by the hundreds of classic homes that populate Laurelhurst. From Old PDX style to Craftsman to Bungalow, you'll find character in the homes in Laurelhurst. Walking and biking friendly, the Laurelhurst area is minutes from amzing downtown Portland to the west and the shopping excellence of the Lloyd district to the northwest. It also borders Belmont Street and is close to the city's Hawthorne area and their neat little shops and restaurants with unusual cuisine. Wide, shaded streets twist through the area and are lined with huge, old trees and gorgeous flower-packed gardens. And then there's Laurelhurst Park. Even in Portland, Oregon - a city known for its many, many beautiful parks - the 25 acre Laurelhurst Park stands out as one of the city's crown jewels. If you're looking for a great place to live, this could be it.Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Beautiful Forest Heights Home

Rick Sadle (Keller Williams Realty Professionals) — Fri, 28 May 2010 10:26:09 -0700

Amazing home in Forest HeightsRick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

The Short Sale Deficiency Plan.

Rick Sadle (Keller Williams Realty Professionals) — Fri, 28 May 2010 09:59:46 -0700

A couple of years ago most of my short sales would have ended with no deficiency judgments for the home seller. Nowadays that's still my ultimate goal, but it's not quite the foregone conlusion that it used to be. A lot depends on who the lien holder is and the financial condition of the seller. Some lenders will not change the language on their approval letters no matter what you threaten. That being the case, I always ask my clients prior to listing their home for short sale what their plan is regarding deficiency. If the approval letter comes back without any guarantee that there will be no deficiency possibility, what do they intend to do? This helps me better advise them of the chances of success for a short sale. Some people will still likely continue because their credit is so important that they are willing to risk the deficiency possibility. Some people have both a first and 2nd and in some instances the 2nd can still pursue them for a judgment no matter what (at least in my state). This is also a question any buyer's agent should ask a listing agent on a short sale. "What are the sellers plans if there is a deficiency?" This way if you know the seller won't continue with a short sale unless the lender agrees to "no deficiency" and the bank is one that won't guarantee this, then the buyer's agent's client won't likely get the house. They should then go ahead and move on. If you're a homeowner who is in distress and need some advice in the state of Oregon, please Contact us! If you're an agent representing a buyer in Oregon, give us a call. We can help. If your an agent representing a distressed seller in Oregon, give us a call. We can helpRick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

A Fast Bank of America Short Sale?

Rick Sadle (Keller Williams Realty Professionals) — Mon, 10 May 2010 09:47:39 -0700

My disclaimer: I'm not an attorney or a CPA. I just do a lot of short sales and therefore have formed an opinion. And you know what they say about opinions! 3 weeks. That's it. I'm stunned. We have an extremely organized well run team around processing short sales. We have a full time negotiator and a host of other team members to get these things through, but a response from Bank of America in 3 weeks??? That's amazing. It's also our 6th approval from Bank of America in the last 2 weeks. It really seems like they are making a concerted effort to get the process streamlined. Now. . . if someone could just explain to them that due to how our state laws are written, they need to provide assurances to our clients in their approval letters that they won't pursue a deficit judgment. Some of my clients are considering letting their homes go to foreclosure due to BofA's stance on this issue. Don't know what I'm talking about? Give us a call. 503-270-5587Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

March Market Stats

Rick Sadle (Keller Williams Realty Professionals) — Wed, 28 Apr 2010 06:24:12 -0700

According to RMLS of Oregon: Comparing March 2010 with the previous month, February 2010, closed sales drastically increased 77.2% (1,799 v. 1,015) and pending sales grew 29.8% (2,402 v. 1,850). Who says the tax credit isn't impacting our market?Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Short Sales are "AS IS"!

Rick Sadle (Keller Williams Realty Professionals) — Sun, 25 Apr 2010 08:58:53 -0700

My disclaimer: I'm not an attorney or a CPA. I just do a lot of short sales and therefore have formed an opinion. And you know what they say about opinions! Short Sales are "AS IS". If you're an agent listing short sales, you really need to let the buyer's agent know that the bank won't do any repairs and the seller often doesn't have any money for repairs. This is almost an absolute. Are there exceptions? I never say never, but let's say almost never. There's nothing more frustrating than a listing agent who doesn't educate the buyer's agent to this fact. The transaction gets an approval, the buyer proceeds, spends money on inspection & appraisal, and then asks for repairs. This is where the deal can, and sometimes does, die. Maybe the appraisal requires certain repairs or the buyer just can't proceed without them. Now we have a wasted approval, a homeowner that much closer to their foreclosure date, and an upset buyer who has spent money and isn't getting the house that they thought. If you are an agent representing buyers in short sales, education is king. Lien holders won't even allow for repairs to be made and paid for out of closing. If the buyer is getting an FHA loan, they might even have to do the repairs themselves just to get their loan. Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Bankruptcies and Short Sales are not mutually exclusive!!

Rick Sadle (Keller Williams Realty Professionals) — Tue, 13 Apr 2010 07:42:44 -0700

My disclaimer: I'm not an attorney or a CPA. I just do a lot of short sales and therefore have formed an opinion. And you know what they say about opinions! Ok. I've had it with Bankruptcy attorneys who advise their clients to "just file bankruptcy now and then let the home go to foreclosure"! I don't get it. Why not complete a short sale and then file bankruptcy? Then the seller at least doesn't have a foreclosure and a bankruptcy on their credit record. Whenever I ask why the attorney feels this way, the answer is always the same. They feel a short sale isn't necessary if you're going to file. They have no other reasons other than this. Now, I'm not an attorney and maybe I'm missing something; but I've talked to other (non bankruptcy) attorneys and they agree with me. If the client pursues a short sale and then names the lien holder(s) in the BK, then they get the best of all possible worlds. There is no deficit judgment, they don't have a foreclosure on their record, the real estate market didn't suffer as much, and they get to start over. I'm not pointing any fingers, but the advice just seems a little self serving. The attorney gets paid now and they don't have to wait. I've even completed short sales while my client was currently in bankruptcy. I'm just saying . . . If you're in the state of Oregon and have questions about short sales, please visit wwww.PortlandShortSales.net.Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

New State Laws Encouraging Default?

Rick Sadle (Keller Williams Realty Professionals) — Wed, 07 Apr 2010 07:39:35 -0700

My disclaimer: I'm not an attorney or a CPA. I just do a lot of short sales and therefore have formed an opinion. And you know what they say about opinions! Some states are starting to put laws into effect to help protect homeowners facing foreclsoure. One such state is Oregon (my home state). One such law is House Bill 3656. I haven't yet decided whether I think this is a good rule or a bad one. House bill 3656 just signed by our Governor and made law on March 10th, 2010 does something helpful. . . or maybe not. In summary, HB 3656 effectively bars "piggyback" lien holders from pursuing a deficiency judgement in a foreclosure. In English??? . . . If you or someone you know bought a home with a first and second loan at the same time, then if you let it go to foreclosure neither the first lien holder nor the 2nd lien holder can pursue you for a deficiency judgement. One of my concerns is that it doesn't address short sales. Only foreclosure. Is this going to motivate people to "strategically default" instead of short selling their home? The common wisdon seems to be that this was intended to motivate 2nd lien holders in this position to work on loan modification programs or short sales because they know they won't get anything in a foreclosure. That may be true, but it might also give some homeowners who are willing to take the credit hit of a foreclosre as a way out without trying to do the right thing. A short sale is better for your credit, it's better for the housing market, and therefore better for our economy versus a foreclosure. One thing worth noting and stressing is that this only applies to 2nd liens that were created on the same day as the first. If the borrower took out a home equity line of credit after their purchase, then this House Bill doesn't apply. Now, I know that there were good intentions in creating this and other laws like it, but I'm concerned that maybe they need to be thought through completely. If you or someone you know has questions about this or the way that it affects short sales in Portland, please give us a call. If you are an agent who has questions about short sales in Portland Oregon, give us a call. We can help. 503-270-5587.Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net

Buyer's agents in short sales should be specialists too!

Rick Sadle (Keller Williams Realty Professionals) — Wed, 31 Mar 2010 08:52:31 -0700

We get calls on our short sale listings all the time from buyer's agents who are asking the right questions. How many loans are there? Who are the banks? Has a BPO (a broker's price opinion) been done yet ? That's great! They are doing what they should be doing. They are asking the questions to find out how much the listing agent knows about short sales. The problem is (in most cases), that's where their knowledge ends. They know they should ask these questions, because someone told them to. They don't generally know how long a short sale takes or how long a foreclosure takes. They don't generally know enough to ask if these are purchase money loans. In Oregon, that's important because it speaks to whether there would be any deficit judgement possible in a foreclosure. This speaks to how likely the seller is to agree to the terms of the short sale approval offered by the lender. They don't ask what the seller intends to do if there is a deficit judgment possibility in the approval. I could go on and on. All of these things would help them guide their clients as to whether this short sale will eventually close. Most people realize that to list a short sale in today's environment takes somebody with knowledge and experience in the distressed property arena. It seems to me that the same thing applies to somebody helping a client buy a short sale. They should understand the process. How can an agent perform their fiduciary duty and advise their clients about something they know nothing about? We have buyer's specialists on my team that attend the same training that I do to list short sales. They have all of the same knowlege on the subject that I do. They are my "distressed property" buyer's agents. Now I'm not saying that agents should avoid representing a client who is buying short sales unless they're experts. I just think that they should gain the right knowledge before doing so.Rick Sadle -Principal Broker in Oregon 503-270-5587 The Sadle Team www.AllPortlandRealEstate.com www.PortlandShortSales.net