Experts at Eugene-based Gorilla Capital see a spike in notices of default with the passage of foreclosure legislation
Note to Editors and Reporters: The following news release contains statewide foreclosure numbers for the Oregon counties where Gorilla Capital operates. News releases with county-specific data are forthcoming. Reporters on deadline may request immediate county-specific figures by calling (541) 344-7867. Gorilla Capital has expanded into four additional Oregon counties, which is reflected in the following release. Please reference statistical explanations preceding company boilerplate.
EUGENE, Ore.—Oregon home foreclosures in May were up by 19 percent from the previous month, according to officials with Eugene-based Gorilla Capital. In 19 Oregon counties where Gorilla operates, there were a total of 1,350 notices of default recorded last month – up from 1,134 in April. A notice of default is the official beginning of the foreclosure process.
With the passage of Oregon SB-1552 in April, Gorilla Capital CEO John Helmick anticipated that a short-term spike in foreclosures would occur at the beginning of May. The new bill will require lenders to meet in mediation sessions with homeowners who are facing foreclosure. Most of the provisions of the bill will take effect on July 12, 2012.
“As we predicted, the recent legislative action means more foreclosures in Oregon counties in the coming months,” Helmick said. “The recent change in Oregon foreclosure law will likely prevent the market from stabilizing in the short term, but we’ve seen significant improvement and recent declines when comparing this year’s numbers with those of one year ago.”
Some notable May 2012 foreclosure statistics include the following:
• Sixteen of 19 Oregon counties where Gorilla Capital operates saw month-to-month increases in notices of default.*1
• Benton, Curry and Deschutes counties saw month-to-month decreases of 31, 21 and 7 percent, respectively.
• Year-to-date, notices of default declined by 42 percent in 15 Oregon counties where Gorilla Capital operates, compared to the same five-month period in 2011.*2
Despite monthly numbers, Oregon foreclosure numbers continue to trend downward as the housing market stabilizes. For example, Oregon notices of default decreased by 26 percent from May 2011 to May 2012 in the counties where Gorilla Capital operates.*3
*1: Gorilla Capital operates in 19 Oregon counties, including: Benton, Clackamas, Coos, Crook, Curry, Deschutes, Douglas, Jackson, Jefferson, Josephine, Klamath, Lane, Lincoln, Linn, Marion, Polk, Tillamook, Washington and Yamhill.
*2: Figure excludes Tillamook, Yamhill, Clackamas and Washington counties. Gorilla expanded into the Tillamook and Yamhill markets in April 2011, followed by expansion into Clackamas and Washington counties in September 2011 and January 2012, respectively.
*3: Figure reflects May 2011 data from 17 Oregon counties where Gorilla operates compared to May 2012 data from 19 Oregon counties with the company’s expansion into Clackamas and Washington counties in September 2011 and January 2012, respectively.