Sunday, February 16, 2014

Lane county Oregon investor alert! Foreclosure surge predicted

Oregon saw an increase of about 25 percent in foreclosures in January 2014 compared to January 2013.  In Lane County, 43 households received some sort of foreclosure notice last month, with about half of these being bank repossessions, according to RealtyTrac.
State legislation passed in August 2013 temporarily decreased foreclosures by limiting lenders ability to file foreclosures until they and the borrower went through a legislated mediation process. That mediation process was expected to take about 60 days, but in reality is taking six months or more. Many of those properties will still end up in foreclosure, once the mediation process is completed. This is purposed to bring  filings to increase to early 2013 levels.
The market went through a buyer surge as many  who had waited to purchase until they felt safe. This happened in mid Jan 2013 and peaked in mid Aug. After any market surge there will always be a decline.  This decline was  in-line with the seasonal drop in buyer activity that happens roughly mid September to mid January. 
Many distressed  property owners  where either holding out hope or just missed the opportunity to take advantage of the  rising buyer pool window. There where just over  250 notices of default filed in December 2013 in comparison with just under 50 in September 2013. 
see the buyer pool expanding  as my business has encountered a 67% increase in buyer calls from December 15 to march 15. I typically see anywhere from 30-40%. This is setting up a situation where there is typical appreciation with a spike in foreclosures. The foreclosure spike will affect values but this loss will be offset to some degree as investors sell the homes they have remodelled from the increase. 
This will be an excellent opportunity  for investors.   I have stated since 2010 we are in a buy & hold market.  I have been making money on rental investments since 2010 myself but  see an opportunity to  start flipping.
Justin Thayer licensed Real Estate Broker in Oregon
Cell: 541-543-7287
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