Short Sale in Bend Oregon

If you are looking to buy real estate in Bend Oregon I would recommend you avoid Short Sales.  Short sales are not a bargain in today's real estate market.  At the time of this article there had been 30 short sales closed in the last 60 days.  This is compared to 55 bank foreclosures that had closed escrow.

The average sales price of the sold short sales was $126.65 per square foot as compared to $115.08 per square foot for the bank owned properties that sold.  The bank foreclosures were on the market for an average of 89 days.  The short sales were averaged 273 days on the market.  Days on the market starts the day the property is listed for sale until the day it closes in escrow.  Regular sales averaged $150 per square foot.

 

Another major problem with short sales is that have to wait months before you even know if your offer is approved by the bank.  The bank has to approve a short sale because the seller owes the bank more than the sales price of the property.  The bank takes the loss in a short sale.
 

I am currently working on a short sale that is my listing.  The lender is Washington Mutual which was bought out by Chase during my marketing of this particular property.  The first offer that was accepted by my clients and awaiting bank approval was on December 17, 2008.  There were two back up offers.  This party withdrew their offer 40 days later without hearing from the lender.

Then another back up offer was submitted to the bank.  During this period 2 other offers came in.  Both offers were substantially higher that the previous offers.  The best offer was then submitted to the lender on February 25, 2009.  One month and 6 days later the lender sent an e-mail to me stating that the offer was approved by them and that I should receive an approval letter within 7 business days.  I am not holding my breath on that one!

My son and partner Matt Johnson made an offer on behalf of one of his clients.  At the time there were a total of five offers.  A few of these were good offers.  The buyers and brokers waited about 6 weeks to find out that the lender did not approve any of them and proceeded to foreclose on the property.

There are only a small percentage of short sales that eventually close.  One reason is that the seller must prove there is a "hardship" and they don't have the ability to make the payments.  Most lenders won't even consider a short sale until the owner is behind in their payments.  Just because the owner owes more than the property is worth doesn't mean the bank will approve a short sale.

If the owner has the income or other assets the bank will not allow a short sale.  That's not an absolute however.  If the owner falls behind in the payments and notifies the bank that they are going to let the property go into foreclosure the lender will sometimes allow the short sale.

Even though some short sales eventually close they are not that great of a bargain.  I recently closed a bank foreclosure sale currently have 2 bank foreclosures in escrow.  The sale that closed countered our offer in 2 days and we put the sale together in 4 days.  It closed in 30 days and my client is extremely happy.

 

The two sales that are in escrow went together as easily and will close soon.  All three of these bank foreclosures sales will have been put on the market, sold and closed before the previously mentioned short sale will close.  Bank foreclosures are better buys and you know you have purchased a home when the bank signs the offer.  They want to sell their foreclosures.  In fact they have to sell them.  

 

 

My advice is to avoid short sales all together.  They may look like a good deal but they are not.  Bank foreclosures are the way to go.  In fact there are some realistic owners that are willing to sell their properties at very affordable prices.  Avoid the short sales!

 

If you’re serious about buying Bend Oregon real estate you should sign up for Jim’s free New Listing Notification Service or call or e-mail Jim today.  Jim Johnson is a Certified Residential Specialist and has been selling quality homes in Bend Oregon since 1981. Call 541-389-4511 or see his web site to search the MLS - Bend Oregon Real Estate.  Jim is licensed by the State of Oregon as the Principal Broker for Bend Oregon Real Estate Expert.  E-MAIL