Today Buyers and Sellers of Central Oregon homes are hearing these terms more and more which bring more questions than answers most of the time. There are many misunderstandings of what these terms mean and what the process is or can be. The current real estate market is one that even veterans of 40 plus years have never seen before. Let's explore what these mean here locally and have a glimpse of what they may mean in other areas.

The Short Sale - A seller is attempting to sell their home for less than they owe the bank. That is the simple answer to what a short sale is. As we tread on you will see that the answer is not all that simple. How can the seller do this is one of the most common questions followed by how can I buy this home for less. The seller of a short sale is usually behind at least one payment and can not keep up with the current mortgage. The banks do not want to have to take the home (Foreclosure). Some of the reasons are, banks are not in business to be home owners and the average cost to the bank for a foreclosure is in excess of $30,000 according to some experts.
Ashley Drake Gephart, Associate Broker, REALTOR® a good friend in Albuquerque explains in more detail what a short sale is

A short sale of a residential property is still owned by the owner, but the owner is usually behind in their payments and the price listed is short of what is needed to pay off the mortgage and closing costs. There is no guarantee that the bank will accept a short sale even if the owner offers the full list price, and the response time from a bank on an offer can take up to six months.

A Short Sale is always subject to the lender approval this process is far more complicated that it sounds. Some homes currently listed as a short sale have a first and a second mortgage. In these cases approval by both lenders is necessary. Most short sales will be sold as is, with few if any warranties. Everything about the contract depends on the bank agreeing to it. A short sale can take weeks to months to get bank approval.

Joshua Jarvis REALTOR® in Georgia also explains short sales;

Pre-Foreclosures are also called Short Sales in some cases. Most of these will be listed as well. Short sales can be a great deal and opportunity but do require patience and a easy living arrangement in case the deal falls through. Not all pre-foreclosures are short sales, but most will be.

The process is not as simple as it sounds. There are specific documents the seller will need to provide sometimes multiple times, the listing agent will need to have extensive communication with multiple parties to keep the ball rolling and be familiar with the process and the specific situation.
As a buyer you can have the best agent out there and if the listing agent is un-aware of the process your offer can be a total waste of time. Sellers if you are working with an agent and trying to short sale your home, make sure your agent knows the process. More than one buyer can tell you that they had an offer with a short sale only to find that it went to foreclosure anyway. Reasons for this can vary from the bank would not accept the offer to the listing agent did not ask for the sale date to be delayed while the offer was negotiated.

Complete Article of Central Oregon Bank Owned vs Short Sale

We are seeing a slow down on Bank Owned and Short Sale properties in Southern Deschutes County. In previous months I have broken the active listings down in price range. Today we have each area with 2 lists - one for bank owned and one for short sales. There are some great deals out there, I think my favorite is the listing in La Pine on Day Rd. This home is in good shape has a nice open floor plan, double attached and triple detached garages, fully fenced and access from Day Rd and Snowberry - for $135,000.

Remember when buying a bank owned home or a short sale you deserve to have your own agent. I would be honored to assist you with the purchase of your new home.

La Pine Bank Owned Homes Jan 09

La Pine Short Sale Homes Jan 09

Three Rivers South Bank Owned Homes Jan 09

Three Rivers South Short Sale Homes Jan 09

Sunriver is not showing any bank owned homes at this time - there are 3 short sales, please email, or call for this list of properties.

Many buyers today think that the bank owned home is different than other listings. That is true to some aspects but not the most important one. As a buyer you deserve to have your own agent represent your needs in the transaction. Bank owned homes are no different. You do not have to use the listing agent, the listing agent is working for the bank and not you.

There are a lot of factors you as a buyer should take into consideration when buying a bank owned home. Make sure you are represented and have your own agent. Because of the misnuderstanding from many buyers - I have become a "Bank Owned Buyer's Represnentive."

So, you want to buy an REO (bank owned home)? Many of the homes selling in Central Oregon are bank owned homes. Agents across the nation are specializing in these homes, and I am no exception. I am working with the Buyers wanting to buy bank owned homes.

As a buyer in Central Oregon having an agent that represents you and your needs is important. Short Sales, Bank Owned Properties are no exception to a buyer needing their own representation.

Central Oregon has different issues in different areas - having an agent that knows the area and puts your needs first should be your first choice in buying a bank owned property or a short sale.

Let me help you walk down the road to home ownership whether you choose a bank owned home, a short sale or a reasonably price home.

There are a lot of great loan options for many of these properties. Many times in today's market you can purchase a home for very little down, and payments very close to what you are paying in rent. Investors, this is the perfect time to purchase rental properties or vacation homes. It has been a long time since you could buy a rental home that actually penciled out without a loss, there are a homes out there that can and will rent for the payment amount or more. Central Oregon is having a great buyer's market - the best in 20 years.

The Scam

We are seeing a scary scam in Central Oregon and if has not hit your area it could be any time. People posing as asset managers claim they need to winterize a home that is vacant and listed as a short sale. They call the seller or the listing agent and claim to be with an asset management company needing to winterize a vacant home.

The Method

Upon calling these folks are very persistent and make it seem that they are looking out for the seller and the bank as well. They explain that they know the home is vacant and that to save the seller the expense of loosing a home with weather related issues. They claim that if the home is not winterized when the bank takes possession that the seller will be billed for the repairs. They claim they have spoken to seller and that the seller understands the need.

The Result

Upon gaining access to the home these folks strip it. They take everything they can – the light fixtures, appliances, heaters, hot water tanks and anything else they can get away with. They have not only taken these items but sometimes done even more damage by removing plumbing fixtures without turning off the water.

What Can You Do?

As a listing agent of a short sale home you need to realize that you represent the seller – and that unless the seller has given you permission to let the folks in they have no authority. A bank owned home will not allow early occupancy – this is no different than the bank trying to take early occupancy (if it were the bank). Seller’s if you are called directly – get the name of the company and contact your lender – check it out. Do not assume you are being told the truth.

Central Oregon Short Sale Sellers if you have moved out of your home, you might want to protect the home from winter weather by having it winterized. If you do not know how please call me I can connect you with someone that can do it for you. If you have moved out you might want to make it obvious you have not abandoned your home. Agents, protect your seller and make sure you are serving them properly – click here for my story of this Central Oregon short sale scam.