Do you know someone going through a foreclosure? Are you faced with a pending foreclosure? There is some important information you need to know!
The Portland/Vancouver area has been listed as having a very high concentration of zombie foreclosures on the scene through research done by the well known company, Realty Trac. Zombie foreclosures are homes which have been abandoned by their owners either before, or during the foreclosure process. Doesn't sound outlandish, right? We all know people who have been fleeing their troubled abodes all over the country… in fact there is an abandoned house just down the block from my home: so what?
Technicalities; that's what.
NO COMPLETION on a foreclosure by the bank, means NO TRANSFER OF TITLE. Which leaves a lot of troubled home owners with even more credit problems than they thought they had before. You'd assume that when the home is in foreclosure, the bank should then be responsible for the home, right? But with all the scandals, and all the paperwork, and all the debt that banks have been faced with over the extent of the housing crisis and beyond, somehow the inability (for whatever reason) to 'close the deal' is causing a lot of problems. The homes are sitting vacant, without a completed foreclosure, which means the title of that home still belongs to the owner who has already moved out. Think about it:
*Those property taxes that haven't been paid for over a year? The owner's responsibility.
*The HOA fees that haven't been paid? The owners responsibility.
*That bill for the overgrown grass and graffiti that the city had to clean up? The owners responsibility.
*And what if that house burnt down while unoccupied? If the home insurance premium had already been paid for the time the accident happened, the owner of the home would want to report that and pick up a check.
If someone left their home before the foreclosure process was complete, It could be years down the road before they are contacted with outstanding debts in their name. All the while believing the problem was taken care of. A lot of the headache can be avoided if we realize one important thing: you may not be required to leave your home until officially notified to do so. It's crucial to speak with an Attorney about your specific situation. Make sure to carefully weigh the variables of your personal situation before leaving your home for good.
And one final note: We have all heard it takes two years to get a foreclosure off your record. The detail here, that most people are unaware of, is that the 2 years starts when the home is actually SOLD to another buyer. Notice that the 2 years does NOT start once once you've left the home. If the bank never takes possession of the home, and so, never sells it to another buyer, that dent will be on your credit for a lot longer than anticipated.
Seeking a short sale may be your best bet for avoiding a foreclosure in the end. Even if you have already started the foreclosure process, banks will gladly entertain a short sale situation. You win twice in this situation: you get out of your home loan, and may not be responsible for the difference. Myself, and our exceptional experts at the Front Door Realty office are ready to help you transition to a short sale procedure. Let us do the negotiating for you.
Don't beat yourself up about your situation… instead: know your options and what to expect. And don't forget to contact me about seeking a short sale for your home, even if the foreclosure process has begun: Myself, and my team, can help.
Oregon.gov has a great deal of information on the topic here and here. Realty Trac has compiled a collection of foreclosure laws pertaing to Oregon & Washington. To read the report conducted by Realty Trac on the local Metro area click here, Oregon specifics by county here, Washington specs here, & on a National Scale of this issue, click here.
Front Door Realty is a locally owned brokerage that specializes in buyer brokerage services, lot and land sales, luxury properties, HUD homes, corporate relocation, and more. Give us a call today so we can match you with the perfect team member!
The National Association of Realtors’ most recent Existing Home Sal
"William listened to our needs and was responsive to our requests. Other realtors we have had interactions with expected us to follow their advice instead of allowing us to take the lead. He was professional and prompt to all appointments and he sold our house quickly for above the appraised value of the home"