Banks Unload More Than 1000 Homes In Portland in '09
Of the roughly 7,500 homes that sold in within Portland’s city limits in 2009, more than a thousand were bank-owned. Single-family homes represented the bulk of the foreclosure inventory, roughly 150 bank-owned homes sold in the last year were condos.
The vast majority of bank-owned homes sold in ’09 were in the sub 300k category and located on Portland’s east-side. For the most part Foreclosures remain concentrated in the areas highlighted (green) below:
2009 Foreclosure “Heat-Map”
Here are the # of sales for some of Portland’s zip codes with the most bank-owned sales for the year:
97236: 125 , 97266: 103, 97206: 95, 97220: 65, 97203: 55
Bank-owned sales remained a rarity in close-in neighborhoods. Only a dozen bank-owned homes sold in zip codes such as 97215, 97214, 97212 (each). Nonetheless, as noted previously, foreclosures are increasingly affecting the luxury segment.
Fannie/Freddie’s Foreclosure Prevention Programs Likely To Impact Inventory
The federal government’s initial attempts at curbing foreclosures seemed to have little impact on the housing market. However, recent initiatives have proven more successful and will likely impact bank-owned inventory going forward. This past summer in July 2009, Fannie Mae revised its Home Affordable Refinance Program to permit existing borrowers to refinance with loan to value ratios up to 125 percent from 105 percent. The program is meant to assist borrowers in good standing to refinance their mortgages despite the steep drop in property values in 2008 and 2009.
In November 2009, Fannie Mae launched its Deed for Lease program targeted toward owners faced with foreclosure who do not qualify for mortgage modifications. The program allows the borrower to deed the property over to Fannie Mae and then lease back the property for up to 12 months at a market rental rate. When the properties are sold, the new buyer is required to adhere to the terms of the Deed for Lease terms.
In December, Fannie Mae suspended foreclosure evictions between Dec. 19 and Jan. 3 for the holiday season.
Notable Year-End Opportunities
As the year draws to an end, there are about 250 bank-owned properties for sale in the city of Portland. Here are some of the highlights:
-Forrest Summit, 3500 SF, 3 bedrm, half acre lot, listed in the mid 400s, 50k less than what the bank took it back for and roughly 150k below the city estimator’s Real Market Value (RMV).
-Pearl/NW condo, 3 bed/bath, listed in the mid 500s, 100k below RMV
-Multnomah Village, mid-century classic Dayranch on 0.3 acre lot, 3500 SF, 3 beds/bath. Listed in the mid 300s, 75k below what previous owner paid + put into it in late ’06.
