Effect of Foreclosure Freeze on Oregon Real Estate

Portland, Oregon Real Estate

Effect of Foreclosure Freeze on Oregon Real Estate

As if the housing market in Oregon needed any more problems, along comes what appears to be a major nightmare concerning foreclosures. As revelations about foreclosure "signing mills" have hit the media, authorities and giant lenders are looking into these and other related problems. What does this mean for Oregon's housing market?

Some lenders, Bank of American being the largest, placed a freeze on all foreclosures in October. Within a few weeks, however, BoA released their self-imposed freeze and continued foreclosing. Other lenders held their freeze until systemic problems could be resolved.

Oregon is likely to see home prices stable for the short term. The foreclosure moratorium by lenders will delay sales of homes in the foreclosure pipeline for the time being. But when foreclosures resume, and they will, a large number of homes may come on the market at the same time. Ultimately this is not a good sign for Oregon real estate.

Depending on the length of time required to resolve the most recent foreclosure problem, distressed sales could be pushed well into 2011 or even 2012. This type of action may keep prices stable but it is expected that prices will drop when the large inventories hit the market.

Nationally, distressed sales, which are foreclosures or short sales, account for about 33 percent of the residential market. In Oregon, that number is around 30 percent. The research firm RealtyTrac estimates foreclosures and short sales are lowering home prices by about 26 percent.

With those statistics in mind, RealtyTrac advises that any short-term rise in home sales numbers is likely to be misleading. The overall sales figures, whether in Oregon or nationally, will be driven by foreclosure sales that may have the effect of creating a false positive read on the market.

If you are an Oregon homeowner facing possible foreclosure, or just have questions about your mortgage, help may be available on the state website. Get information and help before it is too late.

More real estate articles

You can talk about... Effect of Foreclosure Freeze on Oregon Real Estate

Tags: • mortgage • questions • realtytrac • distressed • foreclosures • media • authorities • foreclosure • mortgage help • foreclosure sales • home sales • residential market • short sales • distressed sales • housing market •

• <a href="http://article-library.portland-oregon-property.com">Portland, Oregon Real Estate</a>
• <a href="http://article-library.portland-oregon-property.com/foreclosures">Effect of Foreclosure Freeze on Oregon Real Estate (foreclosures); Portland, Oregon Real Estate </a>

Privacy & DMCA Policy -- Sitemap
foreclosures Effect of Foreclosure Freeze on Oregon Real Estate