September 17, 2021

MP Now News

Mortgage News

More than 400 HUD, VA homes to see foreclosure in Clallam

Patti Morris, a Port Angeles real estate agent for JACE Real Estate, said 434 Clallam County homes were awaiting foreclosure by the U.S. Departments of Housing and Urban Development (HUD) and Veterans Affairs (VA) last Friday.

Morris, who holds the exclusive real estate brokerage contract with HUD and the VA, shared the number at the Zoom Coffee with Colleen meeting on Aug. 11 through the Clallam County Economic Development Council.

“I would say once the foreclosures start we will see houses come out,” said Morris. “All federal agencies want these to be 30-day quick closings.”

Details about the house types, the city and the homeowners are all different, she said in a telephone interview.

Homes range from prefabricated houses to single-family homes to larger, more expensive homes, she said.

“In my experience there are a number of people living in the houses, and often they are reverse mortgage houses where one of the owner’s heirs or squatters is in the house, and not necessarily someone who is in trouble with their mortgage is. “Said Morris.

It has been pursuing foreclosures since the federal moratorium on evictions came into force in March 2020.

“The houses may be occupied, but I don’t think there will be a mass dump of houses in the market,” she said.

The Washington State eviction moratorium is due to end on September 30, and the Supreme Court ruling on August 26 is expected to lift the Biden administration and the Center for Disease Prevention’s eviction moratorium.

However, Morris said she wasn’t sure how quickly these homes could hit the market.

“The eviction process can take a few months,” she said.

She said other homes not subject to foreclosure through the HUD and the VA would go through banks and other real estate agents and / or auction houses

As for helping Clallam’s low housing stock, she said it might help, but “it just depends on how quickly they get foreclosed.”

EDC executive director Colleen McAleer asked if homeowners of foreclosed properties could get in touch with potential buyers, but Morris said the foreclosure process for those homes had already started and had been halted by state and state moratoriums.

For options for veterans to avoid foreclosures, call 877-827-3702, and for those who have Federal Housing Administration (FHA) loans through HUD, call 800-225-5342.