Short Sales

The sale of a property where at least one of the underlying lien holders will be requested to accept a compromised payoff in exchange for the release of their Trust Deed / Mortgage.

Check your Preliminary Title Report for the Recording of a Notice of Default.

This means the subject property is in foreclosure and will provide a date that the property is scheduled for sale at the courthouse. A property does not necessarily need to be in foreclosure for you to complete a short sale. A property is in default at the point the owner is behind in payments.

Each Lender will have a Loss Mitigation Unit that will handle the negotiation of their short payoff. You will need to provide them with the customers name, the loan number for the subject account, social security number and written authorization from your seller. This will allow the lender to work with you as the representative for the seller.

At a minimum, the Lender will require the following:

• Copy of the Sales Agreement
• Preliminary Title report
• Estimated Seller's Cost Statement
• Proof of Value
• Additional items may also be requested

Once you have forwarded the required information to the underlying lender, pass their contact name and number on to your escrow officer. Your Escrow Officer will be a secondary source to the lender, for any questions pertaining to the statement and Preliminary Title Report.

However, since your Escrow Officer is a neutral third party, Escrow will be unable to participate in the negotiation with the subject lender.

The lender will forward a demand letter to Escrow providing their requirements for time restrictions and payoff.

Oregon Legislature Funds "The Big Look Task Force"

The Big Look Task Force on Oregon Land Use Planning recently received funding to continue with their findings. In 2007 The Take Force's charge was to develop long-term, permanent recommendations for updating the state land use program for consideration in the 2009 Legislature.

The mission of the Big Look Task Force is to make recommendations to ensure that the state's land use system sustains the quality of our environment and the beauty of our landscape while building an economy that assures the prosperity of Oregon's citizens and communities. The Task Force believes these outcomes will be achieved by investing in future as well as present generations and by insisting upon timely, adaptable and reasonable programs and policies that recognize regional differences and emphasize partnerships between our people and businesses and state, regional and local governments to provide the best public service.

In their July, 2007 report the Big Look Task Force developed the following preliminary conclusions:

Conclusion 1: Oregon's land use system has protected agricultural and forest lands.

Conclusion 2: Oregon has contained urban sprawl and managed growth better than most other states.

Conclusion 3: Oregonians generally support land use planning to accommodate future growth, but they also believe strongly in private property rights.

Conclusion 4: Oregon's land use program is more often viewed as a regulatory program than as a resource for jurisdictions trying to comply with state mandates. Many of the requirements of the land use program are fixed, and the program itself is not outcome oriented.

Finally, there is a lack of coordination and strategic alignment between Oregon's land use agency (LCDC), and state agencies and local governments.

Conclusion 5: The land use program has become a complex mix of statue, case law, amendments, administrative rules and specific exceptions. The system does not have the flexibility needed to respond to a changing Oregon. The perceived "one size fits all" approach to the land use program does not adequately recognise our state's diverse landscapes, economies and values.

Conclusion 6: Most future population and employment growth is forecast to occur in a few major high growth regions of the state. Growth in other regions - encompassing about three- fourths of the actual land area within UGBs- is not expected to place significant burdens on resource lands. Our land system should adapt to distinct differences between the high growth and low growth areas of the state.

Conclusion 7: Approximately one-quarter to one-third of Oregon's land outside UGBs has been designated exclusive farm use (EFU), and can only be amended by an act of the state legislature.

Conclusion 8: Oregon will be challenged t finance and maintain the infrastructure-and the corresponding services of transportation, water supply, and preservation of critical environmental resources-that will accommodate the growth of 2 million more Oregonians projected by the year 2035.

Conclusion 9: There are lessons to be learned from land use planning approaches in other states and countries. Oregon should be a leader in adopting best practices such as providing more incentives, more flexibility, and higher recognition of the role that market forces play in shaping development patterns.

Conclusion 10: The State of Oregon does not have a strategic method for understanding the values of Oregonians, particularly as those values shift or change over time.

Conclusion 11: Most Oregonians share a few basic goals that, when properly balanced inn the state planning system, will help create a sustainable Oregon (e.g., a healthy environment, a prosperous economy, a high quality life, and equity and fairness). Many of the state's existing 19 goals are tools or techniques, and there are many inconsistencies among the goals that need to be resolved.

The Task Force firmly believes that Oregon should undergo a thorough review of it's land use planning system if our way of life-and our very livability-are to continue and thrive. Whether that system changes in ways that are large or small, it really is up to the people of Oregon to make these key decisions. Without a through and systematic review as the Task Force recommends, the system will continue to be threatened by single-issue, temporary solutions that create unnecessary complexity and foster inequity.

I applaud the Legislature for appropriating funds to continue this study and urge my fellow Oregonians to pay attention to this important issue and get involved.

Kickbacks, Fee-Splitting, Unearned Fees

Section 9 of RESPA prohibits anyone from giving or accepting a fee, kickback or anything of value in exchange for referrals of settlement service business involving a federally related mortgage loan. In addition, RESPA prohibits fee splitting and receiving unearned fees for services not actually performed.

Also, RESPA prohibits the Seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.

Violations of RESPA’s anti-kickback, referral fees and unearned fees provisions are subject to criminal and civil penalties. If brokers or agents are to receive fees from lenders or other service providers involving the settlement process, legal counsel should be engaged to determine whether the fee arrangement meets the requirements of RESPA.

Handicapped Friendly

The meaning of “handicapped friendly” in the Residential Housing Input Sheet is misunderstood by most agents. It doesn’t mean just a ramp for accessibility. It means things like 36 inch doorways, properly placed handrails, roll-in showers with levers instead of knobs, windows with cranks at 32 inches, minimum 48 inch hallways, light switches at 32 inches, proper flooring, doors with levers instead of knobs, roll under sinks and lower cabinets. These are just a few of the things that make a handicapped friendly home. And for the buyer, it really depends on their disability.

Affluent Californians being driven out!

California exodus turns to stampede High taxes drive jobs, people from one state to another
Posted: February 20, 20088:00 pm Eastern© 2008 WorldNetDaily
WASHINGTON – California, which once lured Americans from near and far, is now driving out millions of the most productive residents – including high percentages of the most affluent.
"When California faced a Mount Everest-sized $14 billion deficit in 2003, one of the major causes for the red ink was the stampede of millionaire households from the state," says a report called "Rich States, Poor States" by economists Arthur Laffer and Stephen Moore. "Out of the 25,000 or so seven-figure-income families, more than 5,000 left in the early 2000s, and the loss of their tax payments accounted for about half the budget hole."
And it's not just the rich leaving.
Based on data from moving companies, California had the second-highest domestic population out-flow of any state in 2005, according to the report, "despite the beautiful weather, beaches, and mountains."
The bad news for California is that it faces a $14 billion deficit this year, despite boasting one of the highest tax burdens in the nation.
The report, published by the American Legislative Exchange Council shows jobs are not just leaving the country – they are moving from state to state, with the population following.
"States are in direct competition with each other for human capital and business investment. State governments that think they can attract jobs and people, and grow their economies, by taxing their citizens at a higher rate than their neighbors are sadly mistaken," said Democratic Arkansas state Sen. Steve Faris, ALEC's 2008 national chairman. "Legislators should take a close look at where their state ranks in this book and use it as a tool to help them improve.
Moore told the Heartland Institute he is discouraged that government officials at all levels apparently have failed to recognize the benefits of tax cuts, spending controls, and open markets.
"We've gone from $25 trillion to $56 trillion of asset value in 25 years," said Moore. "Policies that were enacted in the 1980s to bring this about are being reversed."
Laffer's "Laffer Curve" analysis of tax rates, economic growth, and government revenues shaped the tax-cutting policies of the Reagan administration in the 1980s. Laffer served as a member of President Ronald Reagan's Economic Policy Advisory Board for both of Reagan's terms as president. Moore is founder of the Club for Growth and senior economics writer and editorial board member at the Wall Street Journal.
The report provides economic competitiveness rankings for all 50 states based on 16 policy variables with a proven effect on the migration of people and investment capital in and out of states. States with the lowest tax, spending, and regulatory burdens win the competitiveness contest. These are primarily in the South and Southwest regions of the nation.
According to the findings, a record 8 million Americans moved from one state to another in 2006, revealing which states have the most dynamic and desirable economies and which are "has-been" states, according to Laffer and Moore.

Contractors License

HB 2498 requires that homeowners hire a general contractor if a building permit is required to meet the building codes. However, the bill also exempts an owner from having a contractors license if repairing, modifying, or reconstructing up to three houses in a calendar year if the work is performed by licensed contractors.

Oregon Real Estate Pre-License Information

OnlineEd has introduced a new program called Passport to Education. This program is designed to assist an individual in preparing for the Oregon State exam quickly and provides many incentives to the student. The program includes reimbursement of the examination fee, a first time pass guarantee, personal instructor, personal referral rewards program, free exam preparation materials, online coaching and marketing tools and a discount for first time renewals. The current market allows time for new agents to gain the education they need to become a professional so now is an excellent time for those who would like a career in real estate.

City of Grants Pass Ponders "Public Safety Fee"

The City of Grants Pass is currently working on developing a fee for public safety. It would be added to the utility bills. This would be in lieu of going out for a Public Safety levy. The amount for residential being discussed is between $15 and $20 per month per residence. They are working on a different rate for commercial and industrial. Once they have solidified the proposal they will be meeting with various organizations in the community to go over the draft and get thier support. The city council meetings are now televised at 7pm on the first and third Wednesday of each month.

Jackson County "Rural Use Ordinance"

Jackson County Commissioners passed the 2nd reading of the Rural Use Ordinance. The ordinance will go into effect 90 days from the date of adoption, which was 1/30/08. The Commissioners are working on an ordinance to deal with "vested rights" which is related to Measure 49. The Commissioners are taking an active role in the Navigability Study of the Rogue and are preparing for the hearing that is set for March 19th in Medford.

Find a "Short Sale Expert"

Using a professional that has experience in handling the short sale process is crucial for the successful completion of a short sale transaction. It is just as important for that professional to have a firm understanding of the foreclosure process from beginning to end. Short Sale transactions can be very complicated in that the standards of practice in the real estate industry are still in the development stages. Finding a company and or broker that has the expertise to lead you through the Short Sale transaction weather you are a buyer or seller will the difference between having a smooth experience or a nightmare. Make sure the broker you choose can provide you with a resume of past experience having handled Short Sale and Foreclosure transactions.

Economic Stimulus Act of 2008

President Bush Signs the Economic Stimulus Act of 2008
On Febuary 13th, President Bush signed the Economic Stimulus package into law. Last week, Congress gave overwhelming final approval to the Economic Stimulus Package supported by NAR and REALTORS® across the country. As a result, the government will be sending payments to most American households and grant tax incentives for business investment.
The legislation includes the requested GSE and FHA limit increases strongly backed and lobbied by NAR. The increased GSE loan limits means borrowers will see immediate relief with new liquidity in the mortgage market and the nation will see an additional 300,000 home sales. The increased FHA loan limits means an additional 138,000 Americans will purchase homes, and with the needed FHA reforms means 200,000 families can refinance their homes safely and affordably.

The OREF Short Sale Addendum & Brief Summary

The Short Sale Addendum & Brief Summary Disclosure are the 2 new Oregon forms created for the purpose of dealing with the dilemmas Short Sale transactions present. There seems to be just as many new questions as there are solutions. Many states have created Short Sale Addendums in the past several months in efforts to come up with there own solutions. I believe we will see changes in the current forms before they become the standard of practice for Short Sale transactions. One issue with the Short Sale Addendum is that both Buyer and Seller cannot terminate of the contract unilaterally. Both Buyer and Seller signatures are required for terminating the contract. (to be continued)