OREGON REAL ESTATE ROUND TABLE

Tag: Real Estate Financing

  • Montavilla Craftsman Bungalow $399,500 w/Contract Terms


    Outstanding early Portland Bungalow with all of the old world charm a person could ask for. Hardwood floors, large kitchen, finished basement, fenced back yard with large deck.

    Located in one of Portlands best neighborhoods and near Providence Hospital. Just a short walk away from Laurelhurst Park, Bus and MAX lines, and freeways. There are many restuants and shops in the area and even during rush hour you are minutes from downtown Portland or a good ride if you bike.

    Owner will consider selling home on Terms (Land Sales Contract) with 5% downpayment. Call Fred Stewart for more details.

    4928 NE Flanders
    Portland, Oregon

    Fred Stewart
    Stewart Group Realty Inc.
    info@sgrealty.us
    503-289-4970

  • Multnomah Foreclosures Web Site Updated: http://multnomahforeclosures.com/


    Multnomah County Forclosures (http://multnomahforeclosures.com) has been updated with the largest foreclosure list to date. There is also a new Mortgage Broker of the week listed. Brian Collins of Sound Mortgage.

    The foreclosure list for 10 other Oregon counties are also listed on the site this week.

    Multnomah County Foreclosures
    http://multnomahforeclosures.com

  • 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!

  • Banking Crisis for Dummies


    The financial crisis explained in simple terms ………………………..

    Heidi is the proprietor of a bar in Berlin. In order to increase sales, she decides to allow her loyal customers – most of whom are unemployed alcoholics – to drink now but pay later. She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).

    Word gets around and as a result increasing numbers of customers flood into Heidi’s bar.

    Taking advantage of her customers’ freedom from immediate payment constraints, Heidi increases her prices for wine and beer, the most-consumed beverages. Her sales volume increases massively.

    A young and dynamic customer service consultant at the local bank recognizes these customer debts as valuable future assets and increases Heidi’s borrowing limit.

    He sees no reason for undue concern since he has the debts of the alcoholics as collateral.

    At the bank’s corporate headquarters, expert bankers transform these customer assets into DRINKBONDS, ALKBONDS and PUKEBONDS. These securities are then traded on markets worldwide. No one really understands what these abbreviations mean and how the securities are guaranteed. Nevertheless, as their prices continuously climb, the securities become top-selling items.

    One day, although the prices are still climbing, a risk manager of the bank (subsequently of course fired due to his negativity), decides that slowly the time has come to demand payment of the debts incurred by the drinkers at Heidi’s bar.

    However they cannot pay back the debts.

    Heidi cannot fulfill her loan obligations and claims bankruptcy.

    DRINKBOND and ALKBOND drop in price by 95 %. PUKEBOND performs better, stabilizing in price after dropping by 80 %.

    The suppliers of Heidi’s bar, having granted her generous payment due dates and having invested in the securities are faced with a new situation. Her wine supplier claims bankruptcy; her beer supplier is taken over by a competitor.

    The bank is saved by the Government following dramatic round-the-clock consultations by leaders from the governing political parties.

    The funds required for this purpose are obtained by a tax levied on the non-drinkers.

    Finally, an explanation I understand.

    This should clear up any / all questions… Enjoy! J

    Melissa Stashin

    Sr. Loan Officer / Branch Manager

    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

  • Five Ways to Avoid Mortgage Foreclosure, Tips from Expertforeclosurehelper.com


    If you fail to make your mortgage payments on time or if you default on your payments, you are in danger of foreclosure. This happens more and more frequently in today’s economic climate. But it is possible to avoid mortgage foreclosure if you know what to do.

    Here are a few of the options that are available to you. These are only going to be open to you if you can get the cooperation of your lender.

    – See if your lender would be willing to re-arrange your payments based on your current financial situation. This may be referred to as a special forbearance and you may qualify for it if your financial situation has changed. To qualify for this you will probably have to provide information to your mortgage holder to prove that you will be able to meet the payments of the new plan.

    – Another option may be a modification of your actual mortgage. This would involve refinancing the amount owed and/or extending the term of the mortgage. The goal is to reduce monthly mortgage payments so they are more affordable for you.

    – You may qualify for an interest free loan from HUD to bring your mortgage up to date if you meet certain conditions. This is referred to as a partial claim and your lender can help you with the application process and explain the conditions of this type of loan. You can also contact your local HUD office for more details.

    – Another way to avoid mortgage foreclosure is to consider a pre foreclosure sale. The purpose is to sell your home and clear up your debts to avoid foreclosure and damage to your credit. If you know that you will be unable to make mortgage payments even if they are lowered, this may be something to consider. You will have to see if your lender will agree to give you some extra time to sell before foreclosing.

    – A final option which should be considered only as a last resort is a deed-in-lieu of foreclosure. In this case you are basically turning your house over to your mortgage institution instead of paying off the mortgage.

    Even though you will lose your home this may be a better option than losing it to foreclosure. That’s because your chances of obtaining another mortgage loan at some point in the future are better than if your home is lost due to foreclosure.

    These are the main alternatives that you have as you try to avoid mortgage foreclosure. Be sure to contact your lender at the first sign of financial difficulty so they can help you find the option that will be best for you.

    Learn about 6 practical steps you can take to avoid foreclosure.

    If it’s too late for that, find out how to stop a foreclosure by going to getforeclosurefacts.com

    Expert Foreclosure Helper
    expertforeclosurehelper.com

  • First Look at February Numbers – Bank-Owned & Short Sales Almost 30% of the Market, By Bob Broad


    I pulled preliminary numbers for February real estate activity in Portland, and want to report the following highlights: Pending sales volume is up from January, despite the short month. After all the month-end sales get reported we could end up with a ”nice” month. Preliminary numbers have us down to about 11 months of inventory. Since selling has been heaviest at lower price-points and especially with first time home buyers who are taking advantage of more affordable housing and tax credits, we’re not surprised to see healthier sales inventories in the east-side regions of Portland.

    Bank-Owned and Short Sales are Selling in Portland
    Over 25% of all the transactions in February were with bank-owned properties and properties requiring third party approval (short sales and relo’s). 18% of the active listings today are either bank owned or require third party approval. Over 1/3 of the closed sales in Beaverton and Tigard areas were on these “distressed” properties. Similarly deal hunters were active in Lake Oswego last month. Half of the current listings are vacant. This is down slightly, which is good. Nonetheless, we have noticed that many of today’s vacant listings become tomorrow’s short sale and/or bank-owned property.

    We stand ready to help you understand how to maximize your proceeds if you want or need to sell. Call us for a free consultation, and we’ll show you how we can court our extensive buyer traffic to get your pricing strategy right and connect you with your target audience. If you’re ready to purchase, we can help you find the right home and negotiate great terms.

    Sign up here for our Investor Notification for Portland Bank Owned, Short Sales, Fixers & Foreclosures

    Portland Real Estate Cafe
    http://www.portlandrealestatecafe.com

  • Market Update: $1,000,000 Houses in Portland, Betty Jung, All About Portland Blog


    The other day in a post, I said the low end and the extreme high ends homes are selling. This Million $ market segment is doing better overall than some of the other price ranges have been doing in Portland’s metro areas. Although total market time for areas such as Lake Oswego (268 days), West Portland (169 days), and Tigard (180 days) are high, this $1,000,000 price range has had shorter market times per RMLS™. These stats do not include condominium, attached or townhouses, they only include single-family residential properties.

    Below are the stats from RMLS™ at the Million $ price point and higher in areas 147 Lake Oswego (zip codes 97034, 97035), 148 SW Portland, and 151 Tigard (zip codes 97223, and 97224):

    MILLION DOLLAR HOUSES 147-Lake Oswego
    148-SW Portland
    151-Tigard
    2008-2009 Y.T.D.

    # Houses for Sale 131 98 7
    # Houses Pending 5 2 0
    # Houses Sold 47 57 2
    High List Price $19,500,000 $4,988,850 $3,999,000
    Low List Price $1,049,950 $1,080,000 $1,200,000
    Average List Price $1,956,593 $1,783,814 $2,423,800
    $ Sq. Ft. List Price $418 $331
    Average Sq. Ft. Listed 4679 5383 4751
    High Sold Price $3,150,000 $4,300,000 $3,749,000
    Low Sold Price $1,030,000 $1,000,000 $1,200,000
    Average Sold Price $1,496,919 $1,447,144 $2,474,500
    $ Sq. Ft. Sold Price $337 $280 $454
    Average Sq Ft. Sold 4646 5319 4951
    Average Days On The Market 85 122 121
    % Of Sold to Original List Price 89.93% 77.86% 88.9%
    2007-2008 Y.T.D.

    # Houses Sold 118 122 1
    High Sold Price $5,250,000 $4,000,000 $1,100,000
    Low Sold Price $1,000,000 $1,010,000 N/A
    Average Sold Price $1,467,497 $1,441,579 N/A
    $ Sq. Ft. Sold Price $332 $296 $394
    Average Sq Ft. Sold 4426 4866 2792
    Average Days On The Market 110 85 11
    % Of Sold to Original List Price 91.52% 91.92% 79.14%
    Source: RMLS™

    Use of this article, photos and images without permission is a violation of federal copyright laws. (Copyright applies fully and automatically to any work — a photograph, a song, a web page, an article, pretty much any form of expression — the moment it is created. This means that if you want to copy and re-use a creative work in another format, that you find online, you have to ask the author’s permission to re-use their information.)

    (For more national and local real estate information, go to my website at http://www.bettyjung.com)

  • Home Purchase Tax Credit, By Paul Dean of Evergreen Ohana Group


    As you may know, I have been advertising and promoting the $7500 First Time Home buyer Tax Credit (which is really an interest free loan for 15yrs) expires on July 1, 2009. And there has been very little interest by the general public & buyers.

    THIS IS A NEWS FLASH: The new stimulus package may increase that credit to $15K for ANY purchase of a primary home, and IT DOESN’T NEED TO BE RE-PAID!!! This hasn’t been passed yet. But as soon as it is signed into law, I’ll let you know. This is the news from RIS Media today:

    “The enhanced $15,000 tax credit offers a powerful incentive for home buyers to get off the sidelines and represents the best opportunity for economic recovery,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “Congress must make sure that the full $15,000 tax credit remains in the final stimulus plan.”

    The bipartisan amendment to the stimulus package, offered by Sens. Johnny Isakson (R-Ga.) and Joe Lieberman (D-Conn.) and approved by unanimous voice vote, would create a $15,000 home buyer tax credit available to all purchasers of a principle residence for one year after its date of enactment. The tax credit would not have to be repaid and buyers could claim it against their 2008 and/or 2009 tax returns.

    This could be HUGE for our industry. Stay Tuned.
    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!

  • Point of Order by Matt Stashin, Pacific Residential Mortgage Company


    We’ve all heard the news: the dark storm clouds of the financial meltdown will cost the taxpayer hundreds of billions of dollars, if not several trillion by the time it is all said and done. Unemployment numbers are set to skyrocket. The U.S. automakers need a bailout, following suit after so many others. Retail sales were down substantially during the holiday shopping season. People are keenly aware of the possibility of layoffs. Are we done yet? Probably not.

    But amidst the ominous storm clouds lingering on the horizon, if one looks very closely, a platinum lining is visible amongst those clouds. One first reaction might be, “are you kidding?”. However, after a bit of reflection, one can begin to see the sun reflecting off that platinum lining.

    Regardless of an individual’s opinion of the bailout, the soon-to-be former administration and the role of the government in residential housing, the opportunities available in the market place today are unprecedented. We all recognize home values have dropped substantially in almost every neighborhood. And if this is coupled with extremely low interest rates (did someone say rivaling the lowest in 40 years?), the buying power of the consumer has not been more keen.

    One doesn’t have to look far to find a bargain. And with these interest rates, all factors have aligned in favor of the buyer. Sounds pretty good, huh? Well, it is for those who have put themselves in a good position to purchase a home. History will show them to have been very savvy. It pays to buy low, at the incredible interest rates, and watch one’s equity build substantial wealth over time.

    In today’s marketplace, 20% down isn’t the only option. There still exist a limited number of financing options with little to no down payment. In order to better prepare one’s self, a quick check of your credit scores are in order. Freecreditreport.com is a way to find out how your credit history will be analyzed by lenders; credit scores in excess of 740 give access to the best programs and pricing on interest rates. At least 2 years on the job, showing steady income will help on the employment front. Assets are nice to have, but not necessary to have in abundance for all programs. One will want to make sure that checking account statements (2 month’s worth) show no overdrafts. In today’s marketplace, lenders are more cautious than ever when it comes to loaning money to buy a home, but obtaining mortgage financing is still relatively painless when one chooses to work with a seasoned professional mortgage broker.

    With a mini refinance boom going on due to these record low interest rates, one issue the mortgage industry will have to face is the potential for a scarcity of funds. Today, due to the federal government’s conservatorship of Fannie and Freddie along with the strategy to have the Federal Reserve purchase mortgages, many fears have been eased regarding the availability of mortgage money. But a new problem may be just ahead. Wall Street, which capitalized about 60% of the mortgage market, has all but disappeared. Banks are publicly being told to lend money, while their regulators are telling them to maintain adequate reserves, which translates into holding onto their cash. Couple this with the mass exodus of foreign investment into the U.S. mortgage market, and one can imagine a market in which there is more demand to borrow than there is money to loan.

    Consider this: the Treasury department is issuing T-bills with very low yields that may not be attractive to buyers and the Federal Reserve will, at some point, rely on the funding created by the sale of T-bills to have enough capital to continue to purchase mortgages through Fannie and Freddie. If the appetite for low-yield T-bills drops off substantially, which may be a very real possibility, a liquidity crisis in the mortgage market could manifest itself.

    How does this apply to someone today who is considering purchasing a primary residence, a second home or an investment property? My point is this: don’t wait. A scarcity of funds will cause interest rates to skyrocket, overnight. Jumbo funds seem to be disappearing already, although conventional financing to loan amount limits of $417,000 is readily available. Banks don’t seem to be interested in tying up their liquidity in large loan amounts. To me, this is a sign. Not a “doom & gloom” sign, but a warning sign nevertheless. My interpretation here is now is the time to act. The banking system is sound, but mortgage financing is not the banking system. And when capital is being used at the current rate due to the refinance boom, it sets me to wondering how this will impact the availability of funds for mortgage lending throughout the course of this year.

    The federal government has a very tenuous road ahead of it this year. The conservatorship of Fannie and Freddie was meant to be a temporary situation and, as it is currently in place, will terminate at the end of 2009. Between now and then, the best and brightest minds in our country will have to reinvent the mortgage market. With many banks still teetering on the edge, one must think these low interest rates will take a toll on the availability of funds. Who will be interested, long term, in 4.5% paper? As the stock market starts to rebound, investors will be looking for higher returns on their money and interest in current mortgage paper yields will wane thereby creating a scarcity of funding for new lending.

    Thought the storm clouds continue to linger, and they may even get a bit darker in the near future, It is my opinion that today is perhaps the best opportunity to invest in real estate that has existed in decades. For the money, this seasoned mortgage professional thinks now is the time to get mortgage financing before it becomes a scarce resource. Those that buy houses now will likely look like a genius down the road.

    Am I saying this is a sure thing? NO; any investment carries risk and should be carefully evaluated. But I am saying when one peers into the storm clouds above and sees the shiny reflection of the sun off the platinum lining, one should strongly consider that the combination of low home prices and low interest rates is a sign to buy before the clouds all break up and disappear. And everyone knows the opportunity has slipped away once the storm has passed. And so I say, keep wear a raincoat and keep an umbrella handy while shopping for a home out under the storm clouds.

    Matt Stashin
    President/CEO

    Pacific Residential Mortgage, LLC
    2 CenterPointe Dr. STE 500
    Lake Oswego, OR 97035
    (503) 619-0482 Direct
    (503) 670-0674 Fax
    (800) 318-4571 Toll Free
    http://www.pacresmortgage.com


  • ‘Liar Loans’ Earn Their Nickname, Michael Corkery, Wall Street Journal


    The failure of Hope for Homeowners to prevent foreclosures is sparking a blame game in Washington. The Department of Housing and Urban Development, which runs the voluntary program, says Congress made it too restrictive and expensive for homeowners.

    Congressional leaders say the program’s failure — only 357 people have signed up since Oct. 1 — shows that lenders aren’t willing to modify loans voluntarily and they need to be forced to do so.

    But HUD officials say other problems are hampering the program’s success. In order to refinance through Hope for Homeowners, applicants must certify they did not supply false or misleading information on a previous loan application. The HUD program also requires homeowners to supply two years of financial records.

    HUD officials believe that people who used “stated income” mortgages which required no documentation of income, are having a hard time qualifying for Hope for Homeowners because of incorrect information on their previous loans. It might not all be the borrowers fault. In many cases, mortgage brokers and lenders fudged loan applications.

    Either way, it appears that stated income mortgages, which are known as “liar loans,” are earning their nickname.

    Here’s a list of the government sponsored and voluntary lender foreclosure prevention programs and how they are faring so far.

    http://blogs.wsj.com/developments/2009/01/02/liar-loans-earn-their-nickname/

  • Portland Development Commission Announces Home Buyer Workshops


    The Portland Development Commission announced 11 home buyer workshops in 2009. They’ll cover below market rate loans, home buyer tax credit programs and down payment assistance loans. They targeting moderate income buyers who need help reducing the cash they need to close the purchase or lower their payment. For more information, call 503-823-3400. Here’s a list of the workshops. All sessions start at 6 p.m.

    Jan. 13, 2009 – Kenton Firehouse, 8105 N Brandon
    Feb. 5, 2009 – Lents Baptist Church, 5921 SE 88th
    March 5, 2009 – Portland Development Commission, 222 NW 5th
    April 9, 2009 – Kaiser Town Hall, 3704 N Interstate
    May 14, 2009 – Lents Baptist Church, 5921 SE 88th
    June 11, 2009 – Portland Development Commission, 222 NW 5th
    July 9, 2009 – Kaiser Town Hall, 3704 N Interstate
    August 13, 2009 – Lents Baptist Church, 5921 SE 88th
    Sept. 10, 2009 – Portland Development Commission, 222 NW 5th
    Oct. 8, 2009 – Kaiser Town Hall, 3704 N Interstate
    Nov. 12, 2009 – Lents Baptist Church, 5921 SE 88th

    For More Information Portland Development Commission Neighborhood Housing Program
    http://www.pdc.us/housing_services/home_buyer/default.asp

  • Portland home price decline hits double digits, Ryan Frank, Front Porch Blog


    Posted by Ryan Frank, The Oregonian December 30, 2008

    Portland-area home values continued to reach new depths in October when prices dropped 10.1 percent compared to the same month in 2007, according to an index published today.

    The Standard & Poor’s Case-Shiller index, one of the most closely watched housing measures, reported the first such double-digit decline in Portland since prices began to fall in the summer of 2007. Prices have now fallen back to their January 2006 levels.

    Portland, along with Seattle and Charlotte, ranked among the top three markets in the index early in 2008. But their position has fallen as the housing crisis that began in the Sun Belt and Rust Belt states rolls through the Northwest. Portland and Seattle now rank No. 7 and No. 8, respectively, for the smallest year-over-year declines. Seattle and Atlanta also dipped to double-digit declines for the first time in October. (Check out Portland’s index since 1987 and an October 2008 ranking by city.)

    “While not yet experiencing as severe a contraction as in the Sun Belt, it seems the Pacific Northwest and Mid-Atlantic South is not immune to the overall demise in the housing market,” David M. Blitzer, chairman of the Standard & Poor’s index committee said in a statement.

    Beyond the northwest, the worst of the pain continued to be concentrated in California, Arizona, Nevada and Florida where speculators, growth and loose lending combined to drive prices far beyond sustainable limits. Phoenix, Las Vegas and San Francisco all fell more than 30 percent in October compared to a year earlier. The 10-city and 20-city composites also hit new lows at 19.1 percent and 18 percent, respectively.

    The New York Times’ home page, for now, has a very cool chart for that shows each of the 20 markets rise and fall in the housing boom and bust.

    http://blog.oregonlive.com/frontporch/

  • Make more on the sale of your home


    Stephanie Stricklen, for KGW.com

     

    It’s a buyer’s market! When it comes to the housing market — how many times have we heard that lately?

    Well, sellers, this morning’s stretching your dollar is for you. In part two of our series on stretching that home dollar– we have tips for sellers from smartmoney.com.

     

    At #5: picking the wrong buyer. Watch out for people with preapproval letters that are more than 4 to 6 weeks old and people who want to attach all kinds of caveats on buying your house– for example– selling theirs first.

     

    #4: paying for a home stager; someone you pay to ready your place for tours. Smartmoney.com says unless you live in a million dollar mansion, save your cash and use common sense instead.

     

    “You want to make sure that when people have four houses that are similar that they’re going into that yours is going to look the best,” says Mary Low with Iron Gate Realty Group.

     

    Your yard should look healthy and weed free. The inside of your home should be clean, bright, and free of clutter, extra furniture, and knick knacks.

     

    Mistake #3: failing to respond to all offers. If someone lowballs you– see if they’re willing to negotiate rather than rejecting them outright.

     

    “If you’re not motivated to really sell, this is not a market to put your house on,” says Mary.

     

    On a similar vein mistake #2 is: questioning the first offer. Smartmoney.com says too many sellers reject thier first offer thinking if they hold out more money will come– a strategy that rarely works.

     

    And the number one mistake home sellers make? Asking too much.

     

    “You really have to price your home at the competition or a little under in order to really be competitive,” says Mary.

     

    Look around at what’s currently selling in your neighborhood– that’ll tell you if you’re way off the mark.

     

    For additional information:

  • Land Sales Contract


    20 years ago when I first entered real estate money was tight…especially for people that wanted to buy homes in Inner North and Northeast Portland.  No reason to rehash why as what is more important right now is to visit how people adapted and moved forward. 

    Land Sales Contracts are agreements between the buyer and the seller that allow the transfer of equity interest in real property.  This tool allows greater flexibility in the terms used to carry properties.  Selling price, down payment or payments, payment schedules and other terms can fit the uniquness of the transaction. 

    You might be thinking why a seller would consider contract terms over cash out terms?  There are several reasons why a seller would consider this avenue.  Some are motivated by nessity and others have more calculted reasons.   I hope to discuss those easons on this blog over the coming weeks.  I will leave you with one interesting situation why someone would consider using a land sales contract to sell property. 

    One of the first clients I had when I entered real estate was a school teacher.  He and his wife were planning on retiring and over the years they had aquired several rental properties and their family home.  Their plan was to sell all of the properties on land sales contract at an interest rate of at least 10%.   The payments they would recive from the contracts in addition to their other investments would mean they would have a comfortable retirement.  With the exception of the home they lived in which was in Alemeda, all of their properties were located in close in Northeast Portland/Albina.  The buyers put down downpayments that ranged in 10-15% and the interest rates ranged between 10% and 12% .  Non of the buyers could have obtained a loan at the time.  Either because they or the home they purchased would have conformed to lending standards of the time. 

    Looking back, I can see the benifits to the buyer, the seller and the community at large.  Contract sales allow the market to move at a time when lending resources were limited.  It allowed families and invidvidulas to invest in the community they lived in and take ownership of their lifestyle.  Bottom line, it was a win, win, win situation for most.  

    The challanging times we live in is a good reminder that cash is not always king.  That there is always another way to obtain our goals.   For some selling or buying property on a land sales contract is the right opprotunity and for some the only one.