Homeowners distressed by the housing sector meltdown in the Southern Oregon real estate market can look forward to help from the U.S. Treasury Department in the upcoming months. Last week the Treasury Department unveiled new rules for homeowners nationwide who need to sell but are “underwater” and unable to get a price for their home that would cover the amount owed to their lender. The Treasury Department plan has been created to help those who either don’t have enough income or whose debt levels are too high to allow them to qualify for a loan modification under the multi-billion dollar program known as Making Home Affordable.

When a home in the Southern Oregon real estate market is listed for a price below what is owed to the lender, it falls into the category of a Short Sale, but make no mistakes about it, there is nothing short about it, except for the funds necessary to pay off the loan. However, there are advantages to a short sale; in addition to saving the seller’s credit, short sales save the banks the expense of foreclosure. Short sales also help to solidify neighborhood property valuations because a short sale price is most likely a higher price than what the house will sell for through foreclosure. It is estimated that in 2009, one out of every ten home sales was a short sale, and in some distressed areas like Las Vegas and Sacrament, the ratio is much higher.

Following are the guidelines for qualification for the new Treasury Department assistance: Continue reading Treasury Department Assistance for Short Sales in the Southern Oregon Real Estate Market