Central Oregon Real Estate

USDA Loan – 100% Financing is Possible

If you are thinking about buying a home anywhere in Deschutes County except in the Bend urban growth boundary, you should be aware of the USDA Rural Guaranteed Home Loan Program. USDA Rural Home Loans offer many advantages over either FHA Mortgage Loans or Conventional Home Loans.  Here is a brief summary of advantages of the USDA Rural Home Loan.

• No Down Payment - Truly a 100% home loan
• No Expensive Mortgage Insurance - Keeps your monthly payment low
• No Cash Reserve Requirement
• No Minimum Credit History Requirement
• USDA 100% Financing is a top choice among First Time Home Buyers
• No Limitation to the purchase price
• May finance up to 102% of the appraised value
• Down Payment Assistance from non profits is acceptable
• No limits to the concessions the seller can make - seller paid closing costs
• Rates are typically similar to FHA Home Loans or Conventional Mortgages

USDA Rural Home Loans provides competitive rates, the lowest down payment and the lowest monthly payment of any loan available. There are qualifications for the program. For instance, your household income for a family of up to 4 cannot exceed $73,600 and a family of up to 8 can have a household income of up to $97,150. Additionally, you cannot finance an existing manufactured home with this program. 

Call Fred Chamberlin today at 541-342-7576/541-221-3455 Cell for a current quote.  You’ll be glad you did!

Article Submitted by Fred Chamberlin – of Alpine Mortgage Planning

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138639 Nob Hill, Gilchrist Oregon

Looking for a great home that backs up to Forest Land? Then look no further this great home has been completely restored, updated. Feels new yet still has the greatness those older homes have.  Originally built in 1939 for a supervisor of the Old Gilchrist Mill.

Spacious, warm and hidden storage in almost every room this home will meet the wish list from everyone! A huge RV shop, additional garage out back and multiple other out buildings.

The living room features a cozy fireplace, bay window and is large enough for seating for everyone! Formal Dining has beautiful built-ins you expect to find in a home of this era. The French doors lead to a covered patio for all your outdoor dining and entertaining.  The patio even has a wonderful water feature.

Kitchen is fully updated with all the modern conveniences we love in a newer home, appliances flooring and tons of cabinets with great use of space. A breakfast nook is the perfect place to have your morning coffee while watching the wild life right out the back.  Current owners enjoy feeding the birds and have several species that keep them entertained for hours.

Master suite is just that a full suite you step down into your own world.  With a gas stove that looks like an old fashioned wood stove in the corner with room for seating then step into the master bath that features great counter space and windows that open to the back of the property looking out to miles upon miles of nature. The walk in closet has a built in drop down ironing board and room for the most organized person.

The den or office is towards the front of the home just off the entry allowing you to work in quiet yet be close to everyone!  The den has a great old world feel and a large window brings in the Central Oregon sunshine.

Heading upstairs –the staircase reminds us of days gone by but so sturdy and beautiful.  The two guest rooms upstairs and guest bath are all spacious.  the bigger of the two bedrooms has 3 count them 3 closets and built ins in each closet.  The “smaller” bedroom (although not really very small) features a built in desk too.  This home even has a basement.  In the basement you will find the newer heater, 2 hot water heaters, a shower, the laundry area and a fully finished room to store all those extras without ever leaving the house.

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Bank Owned Homes For Sale – Central Oregon June 2009

The good news for sellers is that the bank owned homes do not seem to be increasing too quickly on the market.  Below you can click on each area and a list of current bank owned homes will download.

In the Month of May there was a total 71 bank owned homes that closed escrow in Bend, La Pine, Three Rivers South and Sunriver (actually sold). The report of sold properties is also included below, one of the best things a buyer can know is what other properties have been closing escrow for, this will give you a much better idea as to what the bank might take for the home you are looking at.

Another tid bit of good news is that in the same Bend, La Pine, Sunriver and Three Rivers South area there are currently 96 homes in escrow (have an offer on them).  With the properties coming off the market quickly the sellers that are competing with these homes will not have as many bank owned homes to compete with.

Again this month there are too many Bend bank owned properties to have the report load in a timely manner so this list is for bank owned homes in Bend under $200,000 - if you would like a more specialized list please click on the Listings By Email and complete the form.

Sold Report For La Pine, Bend, Sunriver and Three Rivers South

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Can’t Sell For What You Owe? Short Sale or Foreclosure?

Now that we have all been and seen this market for a little while (ok it feels like forever for some) the questions are coming from buyers and sellers alike about short sales and foreclosures.  There have been guidelines written, changed and re-written, we have seen modification promises and a confusing statements that make us think the banks HAVE to work with us only to find that is not the case.

So bottom line is you are trying to save yourself a foreclosure on your record.  We all fear that word and fear the process, but for some it may be the best solution unfortunately.  First of all I am not an attorney or a tax professional and before making any financial decision like this the advice of at least one is advised.

Short Sales can be complicated, long and have some hidden consequences.  First of all let’s talk about what happens to the difference of the sales price and the amount you owe.  You will most likely be issued a 1099 for the difference.  Now, wait – don’t panic.  If this is your primary residence or if you have been renting it to a family member there are currently guidelines that will help you not have to actually call this income.  HOWEVER, if the property is an investment property you will have a pretty stiff number added to your yearly income.  This is why talking to an attorney and / or a tax professional is vitally important.  I keep seeing agents list homes for short sale and I wonder if that investor can handle an additional $100,000 income.  I don’t think you can file bankruptcy on taxes, another thing to talk to the tax professional about.

Do not let an agent tell you, “you will not have to pay taxes on the difference.” This is different under different circumstances.  YOU ultimately are responsible to know what will be the final outcome.  I am not trying to scare you out of selling as a short sale, but you really need to understand the outcome.

This is a true story;  Seller finds an agent that says – oh you can short sale your duplex – the property is listed.  The seller said he wanted to short sale – and so the agent did what he/she was told.  The property gets an offer for $125,000 less than is owed.  The seller will be issued a 1099 for $132,000 the difference of what the bank received and the amount owed.  This happens in 4 different cities that the seller owned property – all exceeding $50,000 loss to the bank so now the seller will receive at least $200,000 in 1099s.  When he called me to list one of his local properties and I did the math for that property – and explained that before he listed the property he really needed to talk to an attorney and or a tax expert he did so but felt it was un-necessary.  Then he called back in tears.  He would have lost the properties, his credit would have been ruined for a period of time but everyone of these properties would have gone to a foreclosure sale not a judicial foreclosure.  We will talk about the difference of judicial and non-judicial next week.

In Oregon most foreclosures are done through a sale.  A Notice of Default and Intent to Sell is served.  When the lender / bank takes the property they have cleared the debt.  So, if the seller above had allowed all of these properties to be foreclosed on he would owe nothing on them and not had a tax issue he is not capable of resolving easily… this is why talking to a real estate professional, an attorney and a tax professional is so important.

I know the photos do not go with this post…. but we get our wildflowers in Central Oregon so late in the spring I had to share what I found last week.

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The Questions That A Short Sale Bring

From looking at some of the search strings (what you type into Google and other search engines) to find my blog I have come up with a list of great questions by you the buyer in Central Oregon.

1. I found a short sale but discovered there are past due bills – who is responsible? Several homes that are bank owned or short sale have past due Home Owner Association dues, water and /or sewer bills and so on.  The answer is not as simple as you would think.  It depends on how you write your offer and how much research you and or your agent do.
2. How long does it take to close a short sale? Many times a short sale is a long process and other times it can move along more quickly.  A couple things to keep in mind is that the lender of the property make the decisions, and if there are multiple lenders this can be a little trickier.  A buyer of a short sale should expect it to take anywhere from 6 weeks to 6 months.  Do not give notice where you are living until you have the keys as everything is subject to the bank’s approval and things can change quickly.  Give yourself lots of time and be patient.
3. What is the average response time from a bank for a short sale? This depends on more than just you the buyer – it depends on the bank, the amount of files they are processing, the property and the status of the seller’s loan.  There are a lot of factors that will increase or decrease the response time from the bank.
4. Can we occupy the home before closing? Most likely NO and why would you want to?  If the bank makes changes to the contract that are not acceptable to you and you have moved in you may be moving again.  The seller is in possession of the home for a short sale.  Remember that if a lender tries to give the seller a 1099 or asks for them to pay the difference the seller can cancel the contract.  These are items you may not know until the end of all your waiting.
5. Which is better a short sale or a bank owned property – a short sale may be a great option but there is a lot of waiting.  A bank owned property is just that already owned by the bank and can be purchased just like any other listing on the market without the wait.  Closing on a bank owned home is generally the amount of time your lender will take to close the loan.
6. Can I ask for repairs? Most short sales you will not receive any repairs although they can always be asked for the worse that can happen is the seller and or the bank say no.  On a bank owned home many times repairs can be and are approved by the asset manager or the bank.  It never hurts to ask.

Please ask more questions below by leaving a comment – I will do my best to answer you through email and on this post (if you provide your email).

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