Posted: Fri, August 3 2012 at 7:03 PM, Updated: Fri, August 3 2012 at 7:27 PM
A new refinancing option may be a last resort for local home owners on the verge of losing their homes.
A new opportunity.
"We have more short sales than ever," says Realtor Alice Lema.
When the housing market crashed, property values plummeted, for instance: In 2004 this home sold for 138k now its listed at only 72,500.
For those facing foreclosure Alice Lema of John L. Scott realty says the Loan Refinance Assistance Pilot Project offers people a way to stay in their home.
"Further Development would buy the home, than the company would sell it back to you."
Further Development, a private, for profit organization in Portland created the program with financial help from the state...
"It serves everyone's purpose," states the organizations President, Erik Sten. "The bank gets more than it would cost them to foreclose, the home owner gets a fresh start, and the tax payer gets 100% of their money back."
It's only being offered in Jackson and Deschutes counties where the foreclosure crisis hit hardest.
There's also a catch for many who may consider the project.
"You can't have a loan backed by Freddie Mac or Fannie Mae."
According to Sten, not all banks will participate in the program,
"For instance Bank of America won't participate, so it doesn't always work."
Plus, the state is only
opening 50 spots on the first day of the month for applications.
Still, Lema says it's an important new option for those struggling...and worth at least checking out...
"Because you get to stay in your own house."
Staying in your home, being the key for many who've found all other doors locked in keeping their house.
For more information you can go to the Further Development website. At this page they include a link for applying. http://www.furtherdev.com/projects.html