Lane County On A Foreclosure Fast Track But Steady Real Estate Market

October 9th, 2007 | Tags: Real Estate Market

Lane county foreclosure rates are faster than the rest of the state. During the first half of this year the number nearly doubled from what it was during the same period last year. As hundreds stumble in making mortgage repayments their lenders are filing default notices – the first ominous step towards foreclosures. As yet Lane County is low when compared to national figures but pace is fast picking up. It has gone up by 92.3% in July and August in comparison to the previous year. Across the country the rise was by 52%.

According to Berri Lesli, the manager of the mortgage department of the state’s Division of Finance Corporate Securities, the root of the problem lies in the strength of Lane County – its high property values. From 2002 to 2007 property prices boomed inviting risky buyers from the sub-prime market. Todd Williams of Portland’s of Evergreen Ohana Group who is also chairperson of Oregon Association of Mortgage Prefessionals echoes these views. The average income of the area is inadequate to sustain the median-priced houses. This invited trouble from the sub-prime category of mortgage with zero equity and floating interest. The initial teaser rates however soon bared its fangs and became deadly within couple of years.

However all agree that the real estate market is still sound. New residents are coming and the mortgage interest rate is still dominantly reasonable. But all are nevertheless apprehensive with the alarming trend across the country foreclosures are increasing while property rates are falling. The pressure is increasing. The mortgage lenders are beginning to tighten their belts.

The chairperson of the Oregon Association of Mortgage Professions, Williams is of the view that the real estate position is still stable because of population growth. It is after all the people that count. The urban growth has been restrictive with limited supply of houses in areas like Portland and Eugene. The urban factor is very important in these instances.

With real estate values being stronger than any other place in the country and likely to remain so, houses will not be difficult to be sold if required. People will thus be able to scramble out of their debts with honour and dignity. That does not mean one should sit back. Lenders must be contacted directly and immediately at the very onset of danger blinkers.

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