Bank and VA Foreclosures for Sale Drive Home Sales in OR- By: John Cutts
Despite the moratorium imposed by several lenders on the sale of foreclosures in Oregon, most brokers revealed that house selling in the state has not slowed down, with bank, government and VA foreclosures for sale continuing to come into the market. Currently, foreclosed houses in the region are estimated to be at 28,000.
The announcement two weeks ago that major lenders like Bank of America, JPMorgan Chase and GMAC will temporarily suspend the sale of foreclosed dwellings in various areas of the U.S. resulted in market fears, with local realtors worrying that it will take its toll on the sales of foreclosed homes in Portland, OR and in other areas of Oregon.
The fear was justified as state brokers reveal that Oregon foreclosure homes, particularly those properties handled by banks, account for the biggest percentage of residential sales in the area. According to local housing statistics, half of home sales during June-September in Bend were accounted for by bank owned houses and short sales. In Redmond, foreclosures account for almost 77% of total housing sales.
However, most real estate agents reveal that the moratorium has yet to make a significant impact on the home selling market, with bank owned dwellings, VA foreclosures for sale and other types of distressed properties still coming into the market while the sales suspension is on. They stated that the supply of distressed and foreclosed residential properties in the state is so high that the suspension failed to halt selling activities.
They further added that the moratorium has actually benefited realtors since they get some extra time to catch up with backlogs in processing real estate foreclosure homes. As Bank of America and other major lenders pull foreclosure listings out of the market, new listings reportedly come in to replace the ones that are supposedly being reviewed by certain lenders.
Realtors have estimated that only around 10% of residential properties have been taken out of the market as a result of the moratorium. This still left a big number of bank owned homes, VA foreclosures for sale and other distressed homes that need processing and are available to buyers. Market analysts have stated that it will take some time before the true impact of the suspension can be assessed.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.