Angela Pernisco

I am not going to discount the difficulty of purchasing a Short Sale. However, when you have a good Real Estate Broker working for you it is not your hardship to bear. With a little patience you may find yourself owning a home at rock bottom price.

There are many causes behind the short sales that we are seeing on the market today, however, there is one truth to always keep in mind: Lenders do not want to see the home go into foreclosure. This simple fact is what allows a skilled negotiator to assist you in purchasing the home for a discounted price. However, there are also many misconceptions to keep in mind about short sales that you must be aware of.

•· Every short sale is NOT a good deal: just because the seller is selling the home for less than they owe on it does not mean that you are purchasing the home at a discounted price. It is important that you hire a Real Estate Broker that is looking after your personal needs not their own commission.

•· Many short sales are in poor condition: I have heard over and over that agents tell people to stay away from short sales because there is no warranty and the house is falling down. This is not always the case especially in this market. This may be the case with a foreclosure as they often sit unattended for many months before the bank lists the home, however, short sales have been occupied. Additionally, many of the short sales that we are seeing today are the result of over financed homes and devaluating property values; not neglect.

•· Hard cash talks: surprisingly, cash offers do not make a difference in short sales. The lender is looking at the bottom line and if it does not balance they will not accept the sale. However, lenders may want to see a substantial down payment to prove stability of the buyer.

•· Sellers are not motivated: My experience has been that sellers are extremely motivated in a short sale. Sellers want to be rid of the stress and anxiety caused by the potential of losing their home.

The bottom line of purchasing a short sale is that you must be patient as they often take several months to complete and have a strong Real Estate professional working for YOUR best interests. I would love to be the Broker to work with you through the process!

West Linn was one of the first Oregon cities to submit its application to receive a portion of the Federal Stimulus money for transportation upgrades. Among the list of potential projects is the HWY 43 project and funding for the Willamette Falls Locks.

The City is encouraging residents to contact Senator Merkley, Senator Wyden, and Congressman Schrader to encourage support of these projects.

The City of West Linn is working closely with Oregon's federal delegation in order to take advantage of every opportunity to receive a portion of the federal funds!

If you had purchased $1,000.00 of Delta Air Lines stock one year ago you would have $49.00 left. With Enron, you would have had $16.50 left of the original $1,000.00. WithWorldCom, you would have had less than $5.00 left.

But, if you had purchased $1,000.00 worth of beer one year ago, drank all of the beer, then turned in the cans> for the aluminum recycling REFUND, you would have $214.00 cash.

Based on the above, the best current investment advice is to drink heavily and recycle. - It's
called the 401-Keg.

A recent study found the average American walks about 900 miles a year. Another study found Americans drink, on the average, 22 gallons of alcohol a year. That means, on average, Americans get about 41 miles to the gallon. Makes You Proud To Be An American!

We are hearing about the many foreclosures affecting American homeownership but I have found that many sellers do not fully understand how they affect them individually. They may feel sorry for their neighbors who have lost their homes but they do not realize that their neighbor's loss is theirs as well.

When a home enters into foreclosure the bank prefers to unload it quickly. They do not have the resources to hold onto the home and rent it until the market returns and they have little interest in holding onto it to get the highest possible price. Additionally, many homes that reach the point of foreclosure have been neglected due to the homeowner's lack of resources to make necessary repairs. Some homeowners are simply frustrated and angry and take as much as they can before leaving the home which sometimes includes fixtures such as toilets and water heaters. As a result, the home is sold for significantly less than "market value".

Let's say that you have three neighbors who have recently lost their home in foreclosure. You have seen the effects of the market but you still have some equity in your home and you have maintained it well so you anticipate that your values are going to be much higher than the recent foreclosure sales. After having it listed for awhile you locate a buyer who is willing to purchase your home for the price that you have set because the buyer also sees the value of your home. This is where things can become sticky. The buyer, who has a solid 20% down payment on your home, orders the appraisal and it comes in $10K less than the accepted offer because the most recent comparable properties in your area include the foreclosures. As an agent, I am seeing this happen over and over in our market. Some banks are requiring multiple appraisals before they will finance your home while others are leaning heavily on the side of caution and using appraisers who will appraise on the lower end of the price spectrum.

What can you do to help the economy and devastating effects of foreclosure? Encourage anyone that you may know to pursue a short sale rather than allowing their home to go into foreclosure. Most banks would prefer to sell the home for less than what is owed if they see imminent risk of foreclosure. This allows the homeowner to sell their home for much closer to market value while also saving them from the long term repercussions of a foreclosure. Call me to discuss your situation or have your friends call to speak in more detail about what can be done to avoid foreclosure.