Foreclosures in Central Oregon continued to drop last month. Now a Eugene-based company that buys foreclosed homes at auction seems prepared to call it a trend.
Gorilla Capital doesn’t track foreclosures in the Portland metro market. But it does in 17 Oregon Counties.
CEO John Helmick says 14 of those saw a decrease or no change in month-to-month notices of default. That's the filing that starts the foreclosure process. In Benton, Jefferson and Klamath counties notices of default dropped 62 percent or more. Moreover says Helmick, year over year filings have dropped in every county Gorilla operates in. Helmick believes the market is beginning to run out of the no-money-down, loosey-goosey mortgages that fed the housing boom.
"The bad loans were made in 2005, 2006, 2007 and a little bit in 2008. And those are the loans that are ones that are being foreclosed on," Helmick said.
Hemlick says while the market is improving, he thinks a full recovery might remain elusive as long as unemployment remains high.