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.
As it turns out, most borrowers who have modified their mortgages through the government sponsored Home Affordable Modification Program are likely to default. In fact, somewhere between 65% and 75% will default within the first year. Many borrowers find modifying their mortgage did little to solve their other debt problems, and still end up in either foreclosure or short sale. This comes as little surprise, as borrowers who have modified their loans spend, on average, 64% of their monthly income paying off debt. Should any small emergency arise they are often unable to pay the monthly minimums on their debts. It would be nice if there were a better plan.