According to a recent WSJ article, most mortgage modifications don’t work. Less than 2% of the projected allotment of $75 billion for the HAMP program has actually been spent to help homeowners avoid foreclosure.
Nationwide, 6.7 million homes were lost to foreclosure or short sale in the decade ending in 2010. Half again as many are projected to meet the same fate in the next 3 years. If projections are accurate, that should keep it a buyer’s market through 2013.
The number of distressed properties in Eugene and Springfield isn’t exactly known—but they are common and I do a lot of them. Rejection from the HAMP program was about 3 of every 4 participants in the western states, including Oregon. If mortgage modification doesn’t work, a short sale may be a good option for you.