Tag: Oregon Real Estate

  • FHA Loan Gravy Train Derailing?


    After a week of travel to Motown on business, and seeing the housing bust at ground zero, I have to ask you all some questions regarding housing and our government’s role in the quagmire.

    Fannie and Freddie dominated the easy loan space to back all borrowers with a pulse from 2000-2007, and now they occupy a toxic waste dumping ground for many a bank’s bad mortgages while trading as penny stocks with all but explicit taxpayer backing.

    The new game in town when it comes to financing mortgages circa 2008-2010 is the truly explicit government backed FHA. That federal agency is THE mortgage market, without which no private bank/investor in their right mind would loan money to anyone to buy real estate at today’s prices. Private loan origination to purchase real estate has all but disappeared.

    Is the FHA spigot beginning to twist toward the “off” position?

    “The Federal Housing Administration’s Mortgagee Review Board (MRB) published a notice today to announce dozens of administrative actions against FHA-approved lenders who failed to meet its requirements. The total amount of originators that used to write FHA-backed mortgages, the report shows, but are restricted from doing so today, has surpassed the 900 mark.”

    “The rate of seriously delinquent mortgages backed by the Federal Housing Administration (FHA) declined slightly from May to June, but the gross number of mortgages that are either 90 or more days past due or in foreclosure increased 35% year-over-year.”

    “The total value of unpaid FHA mortgages was $865.5bn in June, up 30.3% from $663.8bn one year ago and up 3.3% from $837.8bn in May.”

    So we’re on the hook as taxpayers for Fannie and Freddie, and now the FHA is approaching the $1Tillion mark. Delinquencies are skyrocketing, yet the federal government keeps propping up housing prices despite the reality of stagnant wages. Why? How long can this last? When does cold hard cash flow via wages show up in the equation? Perhaps sooner than we all think…

    “A total of 168,915 FHA loan applications were received last month, down 6.9 percent from May and 29.4 percent lower than levels seen a year ago, according to the FHA Outlook report.”

    How much of an income and/or VAT-sales tax increase is Portland and Oregon willing to pay in order to prop up housing prices via government intervention and real estate bailouts? What business does the government have in financing our privately owned assets?

    The sooner the government gets out of housing finance, the sooner most Americans will be able to truly afford a home based upon local wages. Why do we vote for and pay our elected officials to artificially prop up housing and real estate prices?

    This post is just a few thoughts from the road, after seeing real estate up close in the Detriot and Southern Michigan area at truly rock bottom prices. Based upon what I saw during my travels, wage based reality bites…

    Portland Housing Blog
    http://portlandhousing.blogspot.com/2010/07/fha-loan-gravy-train-derailing.html

  • Demystifying Income Documentation, By Jason Hillard, Fireside Lending Group


    Having discussed the importance of the home loan pre-interview, I would like to dedicate a little time to income documentation. There is a lot of confusion about this subject, and thanks to an atrociously lazy mainstream media, and some irresponsible “new media”, disagreements on the issue are still coming up in day to day business operations.

    This is a list of the items your mortgage professional NEEDS from you, REGARDLESS of what type of home loan you want or what type of borrower you are.

    –most recent 30 days of paystubs
    –most recent statement for any depository account, ALL PAGES
    –most recent statement for any other liquid assets or retirement plan
    –most recent 2 years federal tax returns with ALL PAGES/SCHEDULES
    –any divorce/alimony/child support documentation
    –any bankruptcy discharge documentation from the last 10 years

    The reality is that most loans now are what is referred to as “full doc”, which is to say that you will be subject to a financial rectal exam. There are some stated income programs coming back, but bank on your next home loan funding as a result of a full fledged inquest into your personal finances. We’re talking mortgage court-marshal, so you need to be prepared.

    It may sound funny, but you really should frame your thinking around this analogy. Your mortgage professional is really taking up your case, not just packaging a home loan. The underwriter is the judge, jury, and executioner. That is why you need someone who vigorously represents you, like us. (We are not above plugging our outstanding services.)

    So I am now going to explain the thinking behind each of these items, from an underwriter’s perspective. You know you are a good person who will pay back what is owed, and so do we. Let’s delve into the mind of the cagey underwriter though, and see where it leads.

    30 days of paystubs
    This is pretty simple, obviously. But it does go a little beyond “does this person have a job that pays legal tender?”

    What the elusive underwriter is searching for is your year-to-date (YTD) numbers. Does this person work an average of 40 hours? Is there overtime pay that is consistent? What about commisions and bonuses? And is this borrower’s income consistent with the tax returns provided?

    Now, some check stub formats provide a lot of information, and others leave something to be desired. However, it is estimated that 30 days worth of paystubs will provide an accurate representation of monthly income calculated on a yearly basis. “In plain english”, you say? Your YTD pay divided by the number of months so far this year minus one month equals your monthly income.

    Most Recent Depository Statements
    This is usually your most recent bank statement, for all accounts you have. This helps to verify liquid assets. It is very important when running your situation through the automated underwriting software to have this information accurate. This verifies the number of months of cash reserves you have and/or whether you actually have your down-payment available.

    Why do we emphasize ALL PAGES? We know…your balance is on the first page. However, when an underwriter sees “page 1 of 7″ on your bank statement, they immediately want to know, and quite honestly NEED to know what the other 6 pages say. Are there car loans, lines of credit, etc. that aren’t shown on the 1st page? The underwriter needs to assume the worst at all times in order to protect their mortgage company from exposure to loan buybacks.

    Other Asset & Retirement Statements
    More “liquifiable” assets. Stocks, bonds, 401ks, IRAs, etc. What resources do you have that you can sell to make your payments in the event that your income disappears? That’s why we need proof of these items. Important note: for most loan programs, the value of 401ks and IRAs will be decreased by 3o per cent. The reason for this is that if you lose your job, and have to dip into these funds to make your payments, there will be about 30% in penalties and taxes you will have to pay for early withdrawal.

    Last Two Years Federal Tax Returns (All Pages)
    These aren’t always needed. However, we always ask for them. More and more, the automated underwriting systems are requiring them. And even if the underwriter doesn’t need them, it’s a good idea to show them to your mortgage professional. Why? Because, you will be signing a disclosure (4506T) stating that the lender has the right to request transcripts of your last 2 federal tax returns. This right will be exercised. Having a competent mortgage professional look over them upfront assures a smaller chance of “issues” coming up later. You may have what are called “2106” expenses, which reduce your income in the eyes of the underwriter. If you are riding the fence with your debt-to-income ratio, this can implode your home loan.

    As for the self-employed, we will always need 2 years of federal tax returns. There’s no way around it right now.

    Divorce Decrees & Child Support
    Divorce is a nasty thing, and it can rear its ugly head AGAIN the next time you apply for a mortgage. Is there an alimony agreement? Alimony reduces your income. How long will it continue? Is there child support involved? Again, how long will you be obligated to pay it? Is either amount scheduled to increase? The bank has to look at the big picture when it comes to your overall liabilities, and these can play a huge role in determining your debt-to-income ratio.

    Bankruptcy
    Chapter 7 or Chapter 13? When was it discharged? What was included? What was excluded? The details and date of your bankruptcy discharge is a crucial piece of information. The lender must document what liabilities remain, which are cleared, and that the requisite amount of time, as prescribed by the mortgage product you are applying for, has transpired since the discharge.

    Other Circumstances
    You may have a pension that you are looking forward to in the future. Unfortunately, it doesn’t have any cash value now, so it cannot be considered as an asset right now. And you’re not receiving any income from it right now, so it doesn’t offset your debt-to-income ratio.

    Maybe you just started your own business last year, and things are going great. Unfortunately, current underwriting guidelines do not allow us to consider self-employed income unless you have been in business for two years, as evidenced by 2 years of federal tax returns.

    There are all kinds of unique situations, and we are always happy to help you determine where you stand.

    Please understand that in order to truly apply for a home loan, you need to have these items prepared. We don’t ask for them just to make your life miserable. Your mortgage professional is your advocate, not your enemy. You have to present them with ALL of the information so that they can properly represent you in front of the judge. I mean underwriter.

    If you have any questions about income documentation or mortgages in general, please feel free to shoot us an email! Jason Hillard, Fireside Lending Group jasonh@firesidelendinggroup.com

  • MultnomahForeclosures.com Update: New Notice of Default Lists Posted


    Multnomahforeclosures.com was updated today with the largest list of Notice Defaults to date. With Notice of Default records dating back over 2 years. Multnomahforeclosures.com documents the fall of the great real estate bust of the 21st centry. The lists are of the raw data taken from county records.

    It is not a bad idea for investors and people that are seeking a home of their own to keep an eye on the Notice of Default lists. Many of the homes listed are on the market or will be.

    All listings are in PDF and Excel Spread Sheet format.

    Multnomah County Foreclosures

    http://multnomahforeclosures.com

  • Multnomah County Foreclosures


    It has been nearly 5 months since Multnomahforeclosures.com (http://www.multnomahforeclosures.com/) has been updated. As of July 6th, 2010 the site will be updated weekly again. Each week the Notice of Default lists for several counties in Oregon and Clark County will be posted. This information is public information and is provided to make it easier for real estate buyers and the professionals that serve them to develop opportunities in the Oregon market.

    Visit Multnomah Foreclosures, download the Notice of Default reports for free and help the Oregon Market grow!

  • Northwest Residential Apprasial LLC. A Company I will not work with again


    I had an appraiser from Northwest Residential Appraisal LLC (http://www.nwresidentialappraisal.net/) inform me that most people that pay cash for real estate pay more than people that obtain loans. He also asserted that sellers do not consider cash buyers more favorably than they do buyers that obtain loans. In my opinion this Apprasier is either dishonest, ignorant of historical real estate trends when it comes to cash buyers over buyers that seek financing or is covering for some other prejudice he hold against this property. Regardless, I do not want this company around my business again.

    This is the type of professionals we have to deal with in Oregon. Everywhere else on the planet a cash buyer is always considered a better option and a buyer that has to obtain a loan as more risky. That is unless you are working with Northwest Appraisal Services LLC.

    I will never allow a client of mine to become a victim of this company again.

    Fred Stewart
    Stewart Group Realty Inc.

  • FHA CHANGES ARE COMING!


    Mortgage Insurance Premiums increased from 1.75 to 2.25% – Effective April 1st
    · Seller Contribution decreased from 6% to 3% – TBA early Spring

    · Increased Monthly MI – Effective date TBA

    Increased down payment for borrowers with lower credit scores TBA

    TAX CREDIT: Buyer must have a binding purchase contract by April 30th to qualify for tax credit.

    WHAT DOES ALL OF THIS MEAN?

    A 200k purchase price after April 30th may have up to a 15k impact on the borrower.
    (Assuming current rates stay the same. Well…we all know what happens when we assume J)

    ACTION REQUIRED:

    Convert any “shoppers” into BUYERS between NOW and April 30th!

    Don’t hesitate to call or e-mail with any questions you may have concerning how this will affect your clients.

    Melissa Stashin

    Sr. Mortgage Banker/ Branch Manager
    NMLS #40033

    Pacific Residential Mortgage, LLC

    2 CenterPointe Dr. STE 500

    Lake Oswego, OR 97035

    (503) 670-0525 x113

    (971) 221-5656 Cell

    (503) 670-0674 Fax

    (800) 318-4571 Toll Free

    http://www.TeamStashin.com

  • Oregon’s rich getting richer and all others falling behind, wage study shows By Jeff Manning, The Oregonian


    A new analysis of state wages shows that the gulf between Oregon’s wealthy and everyone else continues to widen.

    Oregon’s wealthiest are not only earning more, but the rate at which their incomes are growing far outstrips the middle class and the poor.

    Meanwhile, the middle class continued to encounter stagnant wages this past decade — even during the vaunted economic boom that preceded the bust — and saw its compensation fall back to 2001 levels in the recession-racked year of 2008, according to a draft analysis of wage trends by the Oregon Employment Department.

    Inflation-adjusted annual wages for Oregon’s top 2 percent of earners hit $153,480 on average in 2008, a 29.5 percent increase from 1990.

    Workers at the 50 percentile, meanwhile, earned $32,659 in 2008, an increase of just 2.4 percent over 1990 after adjusting for inflation.

    “Wage inequality in Oregon rose steadily between 1990 and 2000, declined slightly in 2001 and 2002, and continued to increase to its peak in 2007,” the study said.

    The analysis considers only wages. The disparity would be far greater if the numbers included investment income.

    The growing income gap takes on a new significance as Oregonians consider Measure 66, which would increase by 1.8 percentage points the marginal tax rate on personal income above $250,000 for couples, $125,000 for an individual.

    Long after Measure 66 is a distant memory, however, the wage gap will pose a daunting challenge, threatening America’s view of itself as a land of equal opportunity, some economists argue.

    The free-market fervor that has gripped the country since the Ronald Reagan administration has allowed the country, for the most part, to remain competitive in a globalized economy. But some contend that the trickle-down economy has sent just that — a trickle — to the masses, while steering a torrent of riches to the wealthy.

    “There’s something going on at the very top, an explosion of the ‘uber-rich,’” said Bryce Ward, a senior economist with Portland-based consulting firm ECONorthwest. “There’s been no growth in a decade for the middle.”

    Fiscal conservatives generally have dismissed concerns about income inequality as “class warfare.” They argue that economic growth benefits rich and poor alike.

    But recently, there has been some recognition from the right that a struggling middle class and a dysfunctional underclass poses a threat to all.

    In a controversial and much-cited article that ran this winter in the quarterly National Affairs, conservative writer and entrepreneur Jim Manzi argues that the growing income disparity poses a dilemma for which there is no obvious answer.

    “If we reverse the market-based reforms that have allowed us to prosper,” Manzi wrote, “we will cede global economic share; but if we let inequality and its underlying causes grow unchecked, we will hollow out the middle class — threatening social cohesion, and eventually surrendering our international position anyway.”

    It wasn’t always this way.

    Liberal-leaning economists point to the decades after World War II as a golden era when the economy enjoyed sustained, vigorous growth, despite high taxes, and the benefits of that growth were evenly spread across the socio-economic spectrum.

    Those growth years helped create the middle class as we now know it, a huge group that enjoyed low unemployment and big wage gains and even some degree of retirement security.

    The golden era began to wane in the 1970s.

    The economy struggled, inflation ate up people’s buying power, as did double-digit interest rates. And for the first time in decades, wages no longer grew in lockstep with gains in economic productivity, said Heidi Shierholz, a labor economist with the liberal Economic Policy Institute.

    A laundry list of powerful forces contributed to the stagnating wages: The decline of organized labor, the erosion of the minimum wage, the shift from a manufacturing-based to service-based economy, and, perhaps most of all, the globalization of the economy, Shierholz said.

    Manzi adds immigration to that list. While globalization forced American employers to compete with low-wage foreign operations, immigration provided a stream of low-skilled workers across our borders willing to accept less.

    American political leaders turned to free-market policies to see them through the uncertain new era. The Reagan administration deregulated industries and cut taxes. George W. Bush followed up with further tax reductions in the name of spurring the economy.

    The free-market policies helped America pull out of the economic doldrums. But Manzi and many other economists contend the rising tide did not lift all boats.

    “Rising inequality would have been easier to swallow had it been merely a statistical artifact of rapid growth in prosperity that substantially benefited the middle class and maintained social mobility,” Manzi wrote. “But this was not the case. Over the same period in which inequality has grown, wages have been stagnating for large swaths of the middle class, and income mobility has been declining.”

    It’s this decline in social mobility — the ability of Americans to rise beyond their socio-economic origins — that worries Ward. The rags-to-riches story that has long been a bulwark of the American Dream still happens. But it’s becoming more rare, he argues.

    “My concern is just with opportunity,” Ward said. “There should be no correlation between your parents’ earnings and yours.”

    In a 2007 article he co-wrote about wage inequality, Ward pointed out that in 1965 the typical CEO earned 24 times what the typical worker earned; in 2005, 262 times.

    Along with stagnant wages has come what sociologist Jacob Hacker calls “the great risk shift.” In a trend that has only picked up steam in the recession, employers have slashed health care and retirement benefits, leaving workers to shoulder more of that burden.

    Jared Bernstein, an economic advisor in the Obama administration, describes the new paradigm as the “yo-yo” economy, for “You’re on Your Own.”

    At least one prominent economist argues that income inequality has already taken a devastating toll.

    University of Chicago economist Raghuram Rajan, former director of research at the International Monetary Fund, posits that stagnant wages for the bulk of Americans contributed to the economic crash. Millions of Americans wracked up unprecedented debt earlier this decade because their compensation failed to keep up with the cost of living, Rajan theorizes.

    The nation’s financial sector enabled the debt bubble and then sliced and diced bad loans into bad mortgage-backed securities.

    It all blew up in 2007 and 2008.

    The recession’s impact is reflected in the Employment Department wage numbers.

    The study compares wages for four-quarter employees (those who worked all four quarters but not necessarily full-time) from 1990-2008 for four different income groups.

    Oregonians earning at the 50th percentile saw their inflation-adjusted wages grow 4.5 percent from $31,866 in 1990 to peak of $33,318 in 2004. The group’s income has fallen every year since then, finishing 2008 at $32,659, the lowest level since 2001.

    In contrast, those at the top 98th percentile of earners saw their inflation-adjusted wages climb 31 percent in the same 18 years from $118,453 in 1990 to a peak of $155,496 in 2007.

    The downturn took its toll on the high earners as well. Their income dipped to $153,480 in 2008.

    Wage numbers are not yet available for 2009. But given the state of the economy, they likely won’t improve for any income group.

  • Oregon ended 2009 11th in nation for foreclosure, Portland Business Journal


    Lenders foreclosed on 34,121 Oregon homes in 2009, three times more than in 2007 and well ahead of national trends.

    According to year-end figures released late Wednesday by Irvine, Calif.-based RealtyTrac Inc., there were 90 percent more foreclosure actions involving Oregon residences in 2009 than in 2008 and a whopping 303 percent more than in 2007, when the meltdown began.

    The picture wasn’t any better nationwide, with nearly 4 million foreclosure filings against 2.8 million U.S. properties, 21 percent more than 2008 and 120 percent more than 2007.

    The report showed that 2.2 percent of all U.S. homes or one in every 45 residences received at lease one foreclosure filing during the year.

    “As bad as the 2009 numbers are, they probably would have been worse if not for legislative and industry-related delays in processing delinquent loans,” said James Saccacio CEO of RealtyTrac. “After peaking in July with over 3621,000 homes receiving a foreclosure notice, we saw four straight monthly decreases driven primarily by short-term factors: trial loan modifications, state legislation extending the foreclosure process and an overwhelming volume of inventory clogging the foreclosure pipeline.”

    Nevada, Arizona and Florida had the nation’s highest foreclosure rates while California, Florida, Arizona and Illinois together accounted for half of all activity.

    Oregon ranked 11th, with 2 percent of all homes affected, or one in 47.

    Clackamas, Columbia, Deschutes, Jackson, Jefferson, Josephine and Yamhill counties had Oregon’s highest foreclosure ratings.

    Washington state ranked 24th, with 35,268 foreclosure actions, 132 percent more than in 2007.

    http://portland.bizjournals.com/portland/stories/2010/01/11/daily33.html

  • Colonial’s failure could make mortgages more scarce, CNN Money


    The collapse of Colonial BancGroup poses another hazard to the still-shaky housing market: Mortgages could become even harder to get.

    The Southern regional bank, based in Montgomery, Ala., was the largest remaining player in warehouse lending, which provides short-term financing to independent mortgage bankers. At one time, these mortgage bankers originated half of all U.S. home loans using these funds.

    Today, the warehouse lending market is decimated. In 2007 it was worth an estimated $200 billion; now there is just $25 billion available — 25% of which belongs to Colonial. With Colonial’s failure, those funds could become even more scarce.

    “It’s like if they shut down half the concession stands at the baseball game,” said Scott Stern, CEO of the Lenders One mortgage bankers group in St. Louis. “It means the guy who’s last in line is going to have to wait a lot longer to get a hot dog, and in this market who knows what the price is going to be when he gets there?”

    The money began drying up when investors started shunning mortgages not guaranteed by government-backed agencies such as Fannie Mae. These loans, made by the independent mortgage bankers, had become closely associated with the worst excesses of the housing bubble.

    Among the biggest players in the market were Countrywide, rescued last year by Bank of America, and Washington Mutual, which collapsed last September. This year, two other prominent lenders had to unwind their warehouse business: National City, the troubled Cleveland bank acquired last fall by PNC; and Guaranty Bank, the Texas thrift that warned last month that it expects to be taken over by regulators.

    To be sure, everyone isn’t fleeing the market. ResCap, a troubled home lender owned by the government-supported GMAC finance company, said earlier this year that it would expand its warehouse lending business. Citi said this month it expects to put $2 billion into warehouse lines this year.

    But with small banks failing and pulling back and many larger players, such as JPMorgan Chase and Wells Fargo, not aggressively pursuing new business, few expect the new entries to reopen the market.

    Thus the industry is lobbying Washington to give government-backed Fannie Mae, Freddie Mac and Ginnie Mae a bigger role in warehouse lending.

    But with those entities already backing some 90% of current U.S. mortgage originations — and taxpayers on the hook for potentially hundreds of billions of dollars of losses at Fannie and Freddie — that idea is proving a hard sell.

    Still, mortgage bankers are hoping the latest tremors in the banking industry will make Washington more receptive.

    “We’re trying to show people how important this is, but I’m not sure the urgency is there,” said Glen Corso, a longtime mortgage industry executive who now heads the Warehouse Lending Project that’s advocating an expanded federal role. “We’d like to see a private solution, obviously, but failing that we need to get something in place to keep financing flowing.”

  • New Web Site: OregonRealEstateWanted.com


    I am excited to let you know that I have created and released a new web site. OregonRealEstateWanted.com (http://www.oregonrealestatewanted.com/) The ORW web site will be advertising the buyers I am working with to the public much like Stewart Group would advertise a real estate listing. My hope is to develop the most opportunities possible for my buyers.

    If you have friends or family looking for real estate and they want their needs exposed to the widest audience possible….let them know about the OregonRealEstateWanted.com web site. Brokers, feel free to use the site as one of your many tools. Review the site from time to time and see if any of the buyers listed there are looking for YOUR listing.

    Buyers, that seek to have their ads placed on the OregonRealEstateWanted.com web site should contact Fred Stewart, Broker Stewart Group Realty Inc.

    Fred Stewart
    President/Broker
    Stewart Group Realty Inc.
    503-289-4970 Cell
    503-296-2336 Fax
    info@sgrealty.us
    http://www.sgrealty.us

  • Important New Regulations Affecting Closing Dates!


    From the Desk of Phil Querin, Partner, Davis Wright Tremaine, LLC, PMAR/OREF Legal Counsel

    Although the initial annual percentage rate (APR) on a residential loan is disclosed in the Good Faith Estimate early in the purchase transaction, it can change before closing. Under the new rules enacted in the Truth in Lending Act, effective on July 30, 2009 (last Thursday), if the actual (i.e. the final) APR varies from that initially disclosed on the Good Faith Estimate by at least .125%, then there is a mandatory additional three (3) business day waiting period before the transaction can close. So if the final APR isn’t disclosed until late in the transaction, it could potentially force the three (3) business day period to extend beyond the closing date set forth in the Sale Agreement.

    As you know, the Oregon Real Estate Forms (OREF) closing date is written in stone – there are no automatic extensions – so if it appears that the APR could be held up or there is any indication that the APR will change at closing, brokers would be well-advised to get seller and buyer to agree in advance to a written extension as a contingency if the final APR causes the three (3) business day period to extend beyond the scheduled closing date. OREF will be meeting shortly to consider some additional language for the new sale agreement form, although it won’t actually get printed and distributed until early next year. In the meantime, I have recommended to my clients that they may wish to consider adding an addendum to their sale agreements with language such as the following: ” In the event that Buyer’s final Annual Percentage Rate (“APR”) differs from the APR initially disclosed to the Buyer in the Good Faith Estimate by .125% or more, the Closing Deadline defined in the Real Estate Sale Agreement shall automatically be extended for three (3) additional business days in accordance with Regulation Z of the Truth in Lending Act ,as amended on July 30, 2008.”

    This, of course, is subject to the review of the companies’ principal broker and legal counsel.

  • Amateur historian Alan Silver unofficial archivest of Portland’s MLK Jr. Bouldevaby Anna Griffin, The Oregonian


    Amateur historian Alan Silver unofficial archivest of Portland’s MLK Jr. Bouldevard
    by Anna Griffin, The Oregonian
    Saturday June 06, 2009, 6:30 AM

    Michael Lloyd, The Oregonian
    On his blog, MLK in Motion, Alan Silver tracks changes up and down the boulevard. His interest may come from the similarities between his adopted home and the place he grew up in, southern New Jersey. Philadelphia and Trenton, N.J., have suffered their own urban decay and struggled with their own racial tensions.
    Northeast Martin Luther King Jr. Boulevard is the kind of place most people speed past, foot on the accelerator, eyes straight ahead. It’s four lanes of concrete and faded dreams, nondescript in spots, downright ugly in others, seemingly architecturally designed to be ignored.

    But when Alan Silver leads the way, each block tells a story.

    Way up north, near where King meets Rosa Parks, Silver points out a little green house that once was an underground music club and weekend brunch spot, operated without any permits. Farther south, at Fremont, a pretty, new, publicly funded building with plenty of vacancies marks the spot where neighbors, angry over issues of traffic, trash and the treatment of restaurant workers, once forced McDonald’s to give up its MLK beachhead. A few blocks down from that, a squat little building that does nothing to draw the eye just happens to be on the National Registry of Historic Places.

    Today, it’s home to Bardy Trophy. But 75 years ago, Van De Kamp’s Holland Dutch Bakery sold coffee cakes and other pastries from the shop, and a big Dutch windmill churned on the roof.

    “Wouldn’t that have been a cool thing to see every day?” asks Silver, a rumpled guy with a bike messenger bag on his back and a head full of obscure local lore. “Can’t you just see the morning rush? All those immigrants who worked down at the rail yards going in for coffee and pastries on their way down the hill to work?

    “This place used to be so vibrant. Most people have no idea.”

    Silver, a 38-year-old blogger and amateur historian, is perhaps the least likely tour guide for what used to be the heart of first immigrant and then black Portland. He’s a burly, sweet-natured white guy from Southern New Jersey with no background in planning or research, just an instinct for storytelling and an unusual interest in his adopted hometown’s backstory.

    “I tell people it’s my hobby,” he says. “Really, if I’m honest, I’m kind of in love with the place.”

    The street that began as Margaretta, went a century as Union and finally was renamed to honor King has been one of Portland’s main north-south arteries since the late 1800s. It’s also always been a sort of city-within-a-city for the City of Roses’ forgotten classes.

    In the late 1800s and early 1900s European immigrants made the boulevard their Main Street. They studded it with shops, saloons and small bungalows, all an easy commute by foot, horse or ferry to new and bustling rail- and shipyards along the Willamette River. African Americans were driven to the neighborhoods around the avenue by the Vanport floods in the 1940s, the construction of Memorial Coliseum in the 1950s and redlining by real-estate agents.

    For most of its life, the street was a commercial hub, prosperous if segregated. That changed in the late 1960s. The opening of Interstate 5 — a faster route north — drove some business owners to the suburbs. Race riots scared away many more.

    For much of the past three decades, the boulevard has suffered rising crime, dropping property values and the highest storefront vacancy rates in town. Hail Mary planning decisions — adding medians and removing on-street parking in 1980; rezoning large swaths of MLK for higher-density homes and shops in the early ’90s — added to the general sense of desolation.

    “What is Union Avenue?” planners asked in an early 1970s Model Cities application. “A voice, a place left alone too long.”

    That document is among several thousand pages that crowd Silver’s apartment.

    “Maybe I’m fascinated with this part of Portland because it reminds me of home,” he says. “Maybe I feel at home in an area that has fallen into misuse.”

    Silver grew up just outside Philadelphia, in a part of the world dominated by highways, urban decay and tight living. “A treeless cement wonder” is how he describes it. He migrated west almost two decades ago on a whim.

    “I was 21 years old and had no idea what I wanted to do, but I knew if I stayed there I was going to get in some kind of trouble,” he said. “Every place I could think of moving was too hot, too cold, too Southern, too big. But I didn’t know a thing about Portland — nobody did back then — so that decided it.”

    The Greyhound trip out here took three days, but proved worth it when a fellow passenger offered to let Silver and a buddy crash on his floor for a while. The past has always fascinated him — he earned a bachelor’s degree in sociology at Portland State studying the role of women in the workplace during the Great Depression — but graduate school turned out to be more of a grind than he wanted.

    “I never really wanted to work very much,” he says. “So I didn’t.”

    He jokingly describes himself as a dilettante, although he’s definitely not a silver spoon sort. Rather, he’s one of those Portland types who holds a job — these days, he’s a part-time church bookkeeper — to support his hobbies: reading, hanging out with friends, hosting a pirate radio show, taking pictures.

    Silver lives a couple blocks east of MLK and bikes or walks everywhere. A few years ago, he was strolling through the neighborhood when he came upon a box of free stuff someone left on a corner. Inside, he found a weathered book detailing Seattle’s African American history and a pristine copy of the Oregon Mirror, a long-defunct black newspaper.

    Those finds got him thinking.

    He knew the neighborhood where he lived once was part of Albina, an independent city sucked up by Portland in 1891 and since divided into 10 separate neighborhoods. He already had a habit of taking pictures of things he saw on his daily travels along MLK. Gradually, casual interest turned into a serious pastime. He began using his days off to read old newspaper clippings at the library, then branched out into planning documents and historic maps. He grew braver about popping his head into offices and stores to ask questions: How long have you been here? What was here before? Does the building have a story?

    Last year, he started a blog, “MLK in Motion”, mostly just to have a place to collect his photos. It’s evolved to include updates on construction projects such as the new Planned Parenthood building, plugs or pans of the boulevard’s increasing roster of restaurants, funny asides and miniature history lessons. It barely scratches the surface of his interest, or his research.

    ***
    There aren’t a lot of people left, for example, who can tell you about the time Portland State professor and antiwar activist Frank Giese firebombed a military recruiting station at the northeast corner of MLK and Shaver, now a church.
    Less than a block away, no plaque marks the spot where, in 1981, two off-duty cops tossed dead possums in front of the old Burger Barn. Nor does anything indicate the outrage among many African Americans when an investigator described the incident as an “ill-advised prank” rather than racial harassment.

    Few of the more than 25,000 people who drive MLK each day have ever looked closely enough to see the scars on the sides of the few remaining pre-1920s buildings, the marks left when business owners simply lopped off the fronts in response to a city street-widening.

    Silver has both the curiosity and the time to investigate such things. Like the time he couldn’t stand the intrigue anymore and opened an overdue water bill that had been sticking out of an abandoned auto shop’s front fence for weeks.

    “They owed $24,000,” he says. “So I’m guessing they didn’t move voluntarily.”

    Silver points out the former home of Fernando’s Auto Shop as an example of what MLK looked like in between its heyday as a business hub and the current redevelopment. “Garage after garage,” he says. “Functional, not pretty.”

    Similarly, when asked to point out his least favorite stretch of MLK, he heads to the intersection with Ainsworth Street. A Walgreens, a Safeway and a Starbucks sit on three of the four corners, ugly examples of urban renewal done wrong. In addition to being decidedly mundane and unfriendly architecturally — urban renewal that satisfies the wallet but not the eye — each business sports a sign out front welcoming guests to a different neighborhood. “King? Woodlawn? Piedmont? Where are we exactly?” he says, holding up his hands in mock befuddlement.

    He’s thinking about writing a book but doesn’t know where to begin. There’s a definite need: In most city reports, the street’s history starts in the 1980s. He’s certainly got the attention span. Silver once spent a year reading everything he could find about ancient Greek drama. Even if he never finds the will to put his Albina research down for posterity, at least this obsession gets him out of the house and talking to other people.

    “The blog is more about posing questions than finding answers,” he says. “How did this place get this way? Why was it so ignored for so long? What did it look like before we all just sort of gave up?”

    ***
    His travels turn up mysteries: He knows the taggers who use the boulevard as their personal, oversized canvasses by name — “Paulrus,” are you out there? — but rarely by face. He wonders who has been slapping stickers showing sepia-toned photographs of Native Americans on telephone poles, and what message they’re trying to send.
    He also finds humor in the oddest places: the smiley face someone crafted in a vacant lot out of dirt and flowers, gone a day after it appeared. Or the corner lot — now vacant, of course — that at various points in history housed both a church and a porn shop. The guy hosting a yard sale one weekend who explained that he calls the boulevard “MLK-TV” because he can sit out on his front porch and always find something entertaining to watch on the street.

    Some of Silver’s work is amateurish. Much is incomplete. But his blog and collection of old papers and planning reports represent one of the most comprehensive efforts undertaken to document this important area’s past. Silver is practicing citizen journalism and, beyond that, even citizen anthropology. He’s filling in the gaps and pulling in closer than any professional journalist or scholar would likely ever have the time, patience or interest in doing.

    “Most people out here want to talk about what they’re doing. They’re excited,” Silver says. “They may look at me a little oddly, but they answer my questions.”

    That’s because these days good things are happening on MLK. Although the recession has slowed the change, taxpayers are finally seeing some payback for the tens of millions in public money pumped into MLK, with new stores, new restaurants, a plethora of affordable housing and even a few offices. Private development is slowly following, although the street is still a long way from attracting a national chain or offering residents all the basic services they need.

    Police statistics say crime has dropped dramatically from the gang warfare days of the 1980s and early ’90s. Silver’s own experience — he sees more people out at night and receives fewer solicitations from prostitutes — confirm that.

    Many old-time residents of the neighborhoods around MLK are dying off or being driven from their homes by gentrification, so the history is disappearing. Few of the area’s new homeowners and investors have the time or inclination to think about how the street became a place to ignore. They’re too busy working to make it more vibrant and make their investments pay off.

    “Maybe it’s something about Portland that people don’t want to figure out this stuff, they don’t want to talk about the past,” Silver says. “It’s certainly different from a lot of places that celebrate their histories or learn from them or — what’s the word I’m looking for? — at least acknowledge them.”

    Anna Griffin: 503-412-7053; annagriffin@news.oregonian.com

  • Short Sale vs Foreclosure – EFFECT ON CREDIT, By Paul Dean, Evergreen Ohana Group


    I thought this information would be beneficial to know, when you are dealing with sellers on a Short Sale basis. Many consumer don’t realize the impact of a short sale on their credit. Read the attached article and commentary from our credit agency below. There are a couple KEY pieces:

    1. Foreclosure – lenders won’t do another loan for 4 yrs. (Bankruptcy is now 4yrs also)

    2. Short sale – if they keep payments current and their credit is relatively intact, and they do due diligence with the lender to determine how they will report the Short sale on their credit report (ie. “settled” is the best, Deed in Lieu is the same effect as a “foreclosure”) this will result is the least amount of damage to their credit rating. That also goes for a Notice of Default (NOD), even though a foreclosure process was started and the seller is able to sell the home prior to it actually going to foreclosure sale, this will be reported as “foreclosure in process” on their credit, which is treated as a “foreclosure” for credit scoring purposes.

    3. Oregon is not a deficiency State. Meaning that Oregon does not pursue the seller for any deficiency. The banks just take the loss, the seller’s credit is damaged, and that’s the end of it.

    4. The biggest advantage to sellers in a Short Sale is keeping payments as current as possible and getting the lender to reflect the account as “settled”. That will allow this borrower to secure another home loan sooner (maybe 2yrs), rather than if a foreclosure or NOD (4yrs) is reported on their credit.

    I think this is valuable information to share with your sellers.

    To Your Success,

    Paul Dean
    Principal
    Evergreen Ohana Group
    5331 SW Macadam Ave, Suite 287
    Portland, OR 97239

    Office: (503) 892-2800 Ext.11
    Fax: (503) 892-2803
    Email: pauld@evergreenohana.com
    Website: http://www.evergreenohana.com
    OR ML-21,WA 510-LO-33391, WA:520-CL-50385

  • Foreclosure leaders focused on 4 states in new metro list, Catherine Clifford, CNNMoney.com staff writer


    The 26 cities with the highest foreclosure rate in the nation are all located in four hard-hit states, with Las Vegas topping the list, according to a report released Wednesday.

    Metro areas in California, Florida, Nevada and Arizona topped the foreclosure filing list for the first quarter of 2009 in a report from RealtyTrac, an online marketer of foreclosed properties. A foreclosure filing includes default papers, auction sale notices and repossessions.

    Las Vegas had the highest rate of foreclosures of any city, with one in every 22 homes subject to a foreclosure filing in the first three months of the year. The rate of foreclosure filings was 4.5%, seven times the national average.

    Merced, Calif., had the second highest rate, with Cape Coral-Fort Myers, Fla., Stockton, Calif., and Riverside-San Bernardino-Ontario, Calif., rounding out the top five.

    “The metro areas with the highest levels of foreclosure activity in the first quarter of 2009 paint a picture of concentrated problems in a relatively small number of hard-hit areas,” said James J. Saccacio, chief executive officer of RealtyTrac, in a written statement.

    Foreclosure rates have been very high in the 4 key states throughout the bursting of the housing bubble, and so it was to be expected that cities from those states would pepper the top of the list.

    However, it was a surprise to see the list so top heavy, according to Rick Sharga, senior vice president at RealtyTrac.

    “The concentration of troubled metro areas within the hardest-hit states, candidly, was even more severe than we expected it to be,” Sharga said. “The degree to which those four states dominated the rankings surprised even us.”

    New problem cities: Meanwhile, some metropolitan areas had a surge in foreclosures. Boise City-Nampa, Idaho, in 27th place, Provo-Orem, Utah, in 37th, and Charleston-North Charleston, S.C., in 51st were examples Sharga gave of areas that had particular strong gains in filings.

    Sharga said the rise of foreclosures in additional regions indicates new factors influencing the housing market as the recession drags on.

    “What we believe we are seeing is some of the areas with unemployment problems,” said Sharga. “These are people living paycheck to paycheck and, when the paycheck is gone, suddenly they can’t afford to make their mortgage payments.”

    The data for RealtyTrak’s metro area foreclosure report is collected from 2,200 counties across the nation, and those counties represent more than 90% of the U.S. population. Some 203 areas are covered by the report.

    Across the nation, foreclosure activity in the first quarter hit a record high, according to another RealtyTrac report issued last week. Total foreclosure filings reached 803,489 in the first three months of the year, the highest monthly and quarterly totals since RealtyTrac began reporting in January 2005.

    The national report also found that the worst of the foreclosures were centralized in a handful of worst-hit states. California, Florida, Arizona, Nevada and Illinois accounted for nearly 60% of the total foreclosure activity in the first quarter, with 479,516 properties received foreclosure filings in those states.

    http://finance.yahoo.com/news/Foreclosure-leaders-focused-cnnm-14996946.html

  • Multnomah County Foreclosure site updated


    New foreclosure reports listed on the multnomah county foreclosure web site. This week a new addition is the bank owned property lists (REO List) for the month of February 2009. This list consists of properties that were forcloused or deeded back to the lender in lew of foreclosure. Some of these homes are on the market but most are not. These lists will have the name and contact information (address) of the owners (lenders) of the property. Contacting the owners for status might allow an opportunity for you to purchase any of these properties in post foreclosure.

    Mulnomah County Foreclosures
    http://multnomahforeclosures.com/

    Fred Stewart
    President
    Stewart Group Realty Inc.
    fred@sgrealtyinc.com
    http://www.sgrealty.us/
    503-289-4970 (Phone)
    503-296-2336 (Fax)

  • Minimum Credit Score


    It seems my industry (mortgage) continues to see changes weekly, if not daily. I received this message from one the lenders we do business with (Suntrust Mortgage).

    IMPORTANT UPDATE REGARDING REVISED MINIMUM CREDIT SCORE REQUIREMENT FOR ALL LOAN PRODUCTS – Effective for Locks and/or Credit Packages Received on or After Monday, March 23, 2009

    Effective for locks and/or credit packages received on or after Monday, March 23, 2009, a minimum credit score of 660 will be required for ALL borrowers on ALL loan products (traditionally underwritten and AUS processed), regardless of the AUS approval.

    This is concerning conventional loans (less than $417K) fannie & freddie. FHA still allows a min. credit score of 620.

    Now, while this is only one lender, it is likely other lenders will follow suit. Just another sign of the times, that the credit markets continue to “tighten” and credit scores are becoming more important when buying a home.

    Have a good weekend.
    Thank you for the opportunity to serve you,

    Paul Dean
    Principal
    Evergreen Ohana Group
    5331 SW Macadam Ave, Suite 287
    Portland, OR 97239

    Toll Free: (800) 387-7355
    Office: (503) 892-2800 Ext.11
    Fax: (503) 892-2803

    Website: http://www.evergreenohana.com
    Email: pauld@evergreenohana.com

    OR ML-21, WA510-LO-33391, WA WA:520-CL-50385

    PS. Your business and loyalty are truly valued. I strive to provide all my clients with the very best professional service possible. If a friend or family member would appreciate this level of service, please don’t keep me a secret!