Okay..I’ve had some request for foreclosure data specifically regarding our local areas. As I was crunching this data today and working on the charts, I was checking the MLS for new homes for buyers. As I pulled 14 listings for a buyer today, 3 were designated as short sale attempts.
I can say that is not surprising. While, we are not having foreclosure problems like Florida and Nevada, we do have issues here. I didn’t start tracking foreclosure data until March of 2007 so this chart does not show Jan and Feb. From March 2007-December of 2007 there were 479 foreclosure notices served for Salem homeowners. From March 2008-December 2008, there were 586 notices recorded. This is a 22.3% increase in one year.
I know you are all reading this post for the pretty graph, but here is some 2008 foreclosure trivia for Salem for you.
- The shortest time from purchase to default…111 days. Considering that the first mortgage payment is paid at close. This buyer purchased a house and then never made one payment. That is wrong on so many levels…
- The average mortgage amount owed on these foreclosures for 2008 was $160,002.
- It took on average 2017 days (5.5 years) from purchase to foreclosure notice.
- Only 15% of the NOD’s served (Notice of Default) were then served with a Notice of Trustee’s Sale. That means people were able to get their homes sold, modify the loans, give the house back to the bank or create another arrangement prior to a foreclosure auction. This is pretty consistent with my experience that there aren’t a lot of foreclosures on our market, compared to other parts of the country.
- The top three years that homes were purchased and then went into foreclosure…drum roll…2004 (77 served), 2005 (131 served), and 2006 (167 served).
Now…as some of you may have read…Oregon is expected to have a $2 billion dollar budget shortfall. The state economist is expecting Oregon’s economy to reach its worst in the second half of this year. What this means is that we are going to see more job losses which will increase our foreclosures. I would expect 2009 to see another jump in foreclosure notices. This will help to push down prices as buyers are continually asking me about purchasing a foreclosed property or a short sale.
I encourage all buyers and sellers that are interested in a short sale to make sure that your agent has knowledge about them. Short sales are more complicated transactions and they are not easy. That is for another post though…