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.
Most mortgage modificatins don't work.
1 in 4 homeowners with mortgages now owe more than their homes are worth nationwide, said CNN in a recent story. In hard hit states like Nevada, the number climbs to 2 in 3. The number in Oregon isn’t known (at least by me) but it wouldn’t surprise me if we’re similar to the national average.
I speak to homeowners every day, and it’s common for their mortgage amount to play a big factor in their plans. It’s still possible to sell when you’re underwater or upside down through a short sale. It’s a little more work, but it can be a good solution.
It's better to be above water.
I’m basking in my 15 minutes of fame. Our local CBS station, KVAL, interviewed me for their piece on foreclosures and short sales in Eugene. Guess I’m working on the big fish in the small pond theory 🙂