“Mortgage turbulence on its way”
screams the front page of our local Statesman Journal newspaper.
Subprime loans while common in other parts of the country, were much less common here in Oregon. After the first quarter of 2007, Salem had the lowest level of foreclosed properties according to the article. Sounds good…
until you read the rest of the article…
As predicted by some other articles, 2008 is going to be the worst year for those ARMs and Salem is no exception. The article referred to the coming “tsunami” that will occur here in Oregon. They expect that 1/5 of the subprime loans taken out here in Salem, OR will end up in foreclosure.
As an agent, I have seen an increase in the NOD’s that get sent to me every week, and this includes a multitude of higher ends homes, not typically seen. While I know that the subprime issues are going to rear their ugly head here locally in the next 12 months, I also see a chunk of 100% financing deals that are facing the same fate.
I encourage agents and sellers to look closely at marketing strategies, and make sure that the house is in perfect selling condition. Buyers are at a minimum, and in the next 12-18 months, it appears inventory could be increasing. Getting serious about selling is the only option, and agents need to help their clients get where they need to go.