Considering a Short Sale?

A short sale is when a Lender agrees to accept a mortgage payoff amount for less than what is owed. In a short sale, the homeowner generally cannot continue to make their mortgage payment.

Although short sales can be appealing because they are usually priced below market value, there could be some drawbacks. Consider the following when deciding whether or not to put an offer on a short sale.

Does Your Agent Have Short Sale Experience?

If your agent has no experience with short sales, hire a new agent that does. Agents with short sale experience know how to expedite the transaction while protecting your interests. Agents with short sale experience also know how to deal with the Lender once an offer has been made. The Agent should send your loan preapproval letter, a copy of your earnest money deposit, and a list of comparable sales that support your offer on the home to the Lender.

Do You Have Time?

Short sale transactions aren't speedy and require time for the Lender's approval. Some short sales can take a year or longer to close. Some Lenders submit short sales to a committee, but most can make a decision within two to three months. Get a name and phone number for the appropriate contact at the Lender. Don't send an offer blindly to a department. Consider giving the Lender a timeline to respond.Even once an agreement is struck, there is still no guarantee the short sale will go through.

Are You Willing to Negotiate?

In many cases, the Lender will reject your initial offer and come back with a counteroffer. Determine beforehand what your absolute highest limit is, and don't be afraid to walk away if the Lender won't meet your figure. Homes that are priced below market value will receive multiple offers. You want to make an offer that will beat the competition yet still be below market.

Did You Check the Public Records?

Make sure the Lender has already approved the short sale. If the seller has not actually gone into default yet, the bank may not be interested in a short sale. The bank may also not be interested in a short sale if it can get more money by foreclosing. Also, ask the seller or his agent what liens are on the property and which Lender is the primary lien holder. Your agent can also find out who is on title, whether a foreclosure notice has been filed, and how much the Lender is owed. This is important because it will help you to determine how much to offer. If there is more than one mortgage loan on the property, it could be problematic, and at the least, much more time consuming.

Have you Weighed the Pros and Cons?

If you are considering putting an offer on a short-sale, proceed with both caution and patience. Some short sales are priced below market value, creating a great opportunity for buyers to purchase a home when they otherwise might not be able to afford one. On the other hand, many banks have little interest in selling homes below market value. The listing price could merely be the amount the listing agent thinks the bank might accept, rather than what the bank has agreed to. If the home is priced far below market value, the seller may be trying to generate a bidding war, which could just be a waste of time.

Because it can take the Lender so long to reply to your offer, it's in your best interest to keep looking at other houses while you wait. Don't be afraid to proceed with purchasing another home if it's in your price range and is a simpler purchase. Make sure your agent writes a short sale purchase agreement to allow you to retain flexibility. However, short sales can be a great deal for some buyers and do occasionally close successfully.

Troy Batson ~ Broker

Duke Warner Realty

1033 NW Newport Ave

Bend, Oregon 97701

541.678.3725 or 541.382.8262

troybatson@dukewarner.com

troybatson.com

The Value of Long-Term Homeownership

Despite the decline in home prices over the past few years, the National Association of Realtors (NAR) recently released a survey concluding that moving into a new home, particularly over the long-term, is a good investment.

The typical seller is experiencing positive returns, and the vast majority of homeowners see their property as a good investment, according to the latest consumer survey of home buyers and sellers.

Although typical sellers had been in their previous home for eight years, up from seven years in a 2009 study, first-time buyers plan to stay for an average of 10 years. Repeat buyers plan to hold their property for 15 years.

NAR 2010 President Vicki Cox Golder said the pattern of home buyers purchasing with a long-term intent has solidified over the past few years. "This underscores two simple facts - homeownership encourages stability, and the longer you own, the better your investment. . . Despite swings in the housing market in recent years, the fact is most long-term owners see healthy gains in the value of their property."

According to the NAR, even with several years of price declines, the typical seller who purchased a home eight years ago experienced a median equity gain of $33,000, a 24 percent increase, while sellers who were in their homes for 11 to 15 years saw a median gain of 40 percent.

Paul Bishop, NAR vice president of research, said "Eighty-five percent of recent home buyers see their home as a good investment, and nearly half think that investment is better than stocks," he said. "Even with the turmoil created by the housing boom and bust, this indicates the long-term view of homeownership as a fundamental goal and value remains sound. In fact, the single biggest reason most people buy a home is the simple desire to own a home of their own, cited by 31 percent of respondents, including 53 percent of first-time buyers.

"Clearly the agenda here is sustainable homeownership," said Ron Phipps, incoming president of the NAR. "We know homeownership matters. Long-term, it is very, very important. But we want to make sure that people who are buying homes are able to enjoy them and support them over the longer haul. . . There are people who need to rent, and that is fine. . . The market should accommodate that. But the majority of families are better off with homeownership for the long term.

"I think it will be interesting to watch," said Phipps. "The market will be very creative in what it encourages. I like the entrepreneurial nature of developers and Realtors in figuring out what that future is. Right now, I am much more focused on the near future. The long-term market is strong."

Other benefits of long-term homeownership include:

• Social cohesion and stronger communities. Long-term homeowners move less than renters, and therefore, they stay in the same community longer.


• Educational achievement. Studies show that the decision to stay in school is more frequent for those raised by parents who are homeowners compared to those whose parents are renters. Also, changing schools frequently due to moving can negatively impact a child's educational outcome.


• Civic participation. The longer a homeowner is part of a community, the more likely he is to be politically active and vote in local elections. Long-term homeowners have a higher membership in voluntary organizations.


• Lower crime rate. It is easier for homeowners to recognize perpetrators in stable neighborhoods.


• Better quality of home. Long-term homeowners spend more time and money maintaining their property. Neighbors can also influence other homeowners to improve their property, resulting in a better overall quality of the community.

Troy Batson ~ Broker


Duke Warner Realty


1033 NW Newport Ave


Bend, Oregon 97701


541.678.3725 or 541.382.8262


troybatson@dukewarner.com


troybatson.com

Bend, Oregon Foreclosure and Short Sale Report ~ September '10

Active Residential Listing Report ~ September 7, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1469	670	245	311
Active Short Sales:	414 (28%)	200 (30%)	23 (9%)	56 (18%)
Bank Owned Listings:	173 (12%)	114 (17%)	16 (7%)	51 (16%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 40% and 47% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend Oregon Foreclosures and Short Sales Report ~ August '10

Active Residential Listing Report ~ August 2, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1493	654	238	298
Active Short Sales:	442 (30%)	203 (31%)	18 (7%)	58 (19%)
Bank Owned Listings:	164 (11%)	92 (14%)	17 (7%)	46 (15%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 41% and 45% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foreclosure and Short Sale Report ~ June '10

Active Residential Listing Report ~ June 2, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1441	660	223	291
Active Short Sales:	473 (33%)	216 (33%)	21 (9%)	69 (24%)
Bank Owned Listings:	132 (9%)	74 (11%)	11 (5%)	39 (13%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 42% and 44% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foreclosure and Short Sale Report ~ May '10

Active Residential Listing Report ~ May 5, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1465	676	202	301
Active Short Sales:	468 (32%)	227 (34%)	21 (10%)	72 (24%)
Bank Owned Listings:	155 (11%)	88 (13%)	9 (4%)	46 (15%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 43% and 47% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Bend, Oregon Foresclosure and Short Sale Report ~ April 2, 2010

Active Residential Listing Report ~ April 2, 2010

City:	Bend	Redmond	Sisters	Prineville
Active Res. Listings:	1283	587	182	269
Active Short Sales:	438 (34%)	208 (35%)	17 (9%)	72 (27%)
Bank Owned Listings:	127 (10%)	71 (12%)	9 (5%)	33 (12%)

I will be compiling this list of foreclosures and short sales in hopes of determining the bottom of our Central Oregon real estate market. With Bend and Redmond dropping to 44% and 47% combined distressed listings I would say we have leveled off and are starting to decrease. Combine this with the number of homes being sold and the decreasing supply things are starting to change for the positive. Distressed listings are making up 50% of all home sales in the past several months.

For a list of Bend Oregon Foreclosures or Bend Oregon Short Sales follow the links. You can also request other Central Oregon cities by following the above links as well.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262