Overview: I have been tracking and researching homes for over five years. Because of my research, I knew that we were in a housing bubble. And so I stayed out of the market, on the side lines, waiting. Below, is a very common research technique that I use, to learn more about homes that interest me.
Full Disclosure: I own no real estate, I don’t, nor have I ever worked for a Real Estate Agent, a Bank, or a Mortgage broker. I am just a nerd. 
1) Find a house using the MLS, Zillow, or whatever site gives you the best access to the homes you like. Important! The house must have a posted address. In this first screen shot, I am using the site www.centraloregonrealtors.com, and I found a house that I have watched for a while. It’s current MLS # (though it has had many) is 2903276.
2) You can see that on the bottom of the ad, there is a address. So I hightlight the area, right click, and copy the address to my clipboard.
3) I then head over to the Deschutes county web application known as D.I.A.L (click the link).
4) We are mainly interested in this area right here.
5) Click the ‘Check All’ button, then select the ‘Street Address’ radio button, and finally paste the address that you found from a Real Estate site and click submit.
6) In this case you are presented with the following screen.
NOTE: There is a lot of data here, so I am going to break it down for you.
a) This is the Deschutes county liability section. For the most part, you can ignore this.
DISCLAIMER AND LIMITATION OF LIABILITY
Information on the Deschutes County Computer is not guaranteed to be
accurate and may contain errors and omissions. Deschutes County provides NO
WARRANTY AS TO THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE FOR
ANY INFORMATION. Original records may differ from computer entries. If
reliance upon computer record is intended, verification of information on
source documents is required. User expressly acknowledges and agrees that
the use of any information appearing on the Deschutes County Computer is at
User's sole risk. Deschutes County shall not be liable for any direct,
indirect, incidental, or consequential damages caused by mistakes, omissions,
deletions, errors, defects, in any information, or any failure or delays in
receiving information. The following property tax assessment data is updated
nightly.
b) This next section starts to get interesting. The three primary things you will see, is the current owners names, the loan originator, and the address.
Account: 184388 Map/TL: R 1-001 171230 DB 04900
* * * CURRENT Ownership Information ONLY
SILVER,MATT J
BLUE,CATHERINE C
2332 NW CANDLELIGHT PL
BEND OR 97701-5450
THRU: Bank of America Commercial Loan Service
AGENT: BAC (P)
Site Address: 2332 NW CANDLELIGHT PL BEND 97701
Assessor Property Description
CITY VIEW PHASE II Lot: 24
Prop Cls:101 MA:5 VA:26 NH 013 Vol-Page: 2006-12233
Asmt Zone:RS CDD Zone:BEND (CITY OF BEND)
*** Land Values ***
Asmt type R.M.V.
URBAN LOT 180,900
LA 4,500
SD 3,000
*Total 188,400
*** Improvement Values ***
FB $ R.M.V. BLT %GD
153 289,850 2005
c) And here is the property description and the attributes on record of said property. It also has a summary of the property’s sales, but I usually head farther down the document, for the more descriptive sales information.
*** Land Values ***
Asmt type R.M.V.
URBAN LOT 180,900
LA 4,500
SD 3,000
*Total 188,400
*** Improvement Values ***
FB $ R.M.V. BLT %GD
153 289,850 2005
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
Room Grid for 153 Total SqFt: 2521
- - - - - - - R O O M S - - - - - - -
LR K DR FAM BD BATH OTH FP UTL
Sq Ft: 1541 1st Fl 1 1 1 1 1\1 1 1
980 2nd Fl 1 3 1
1010 Garage
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
***** Values shown below are as of the Assessment Date, January 1 of each year *****
*** --------2009-------- --------2008-------- ---------2007--------
Total Taxable Total Taxable Total Taxable
RMV A.V. RMV A.V. RMV A.V.
LND: 188,400 220,320 233,900
IMP: 289,850 341,000 344,440
TOT: 478,250 237,490 561,320 230,580 578,340 223,870
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
SALES: --- 1 --- --- 2 --- --- 3 --- --- 4 ---
Date 02-17-06 09-30-04 02-02-95 12-27-93
Sale $ 639800 96000 41705 37900
Cndtn 30 33 30 30
Class 101 100 100 100
Inst # 2006-12233 2004-61118 1995-36429821993-3242218
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
d) And here is the very detailed sales information. The thing to note, is that the SELLER is on the LEFT and the BUYER is on the RIGHT. If you are paying close attention, you will also notice that the current owner looks to have paid $639,800 in February of 2006, but up in our MLS ad, the owner is asking $299,900. We can deduce that the most likely scenario in our current economic environment is a SHORT SALE.
Sales Detail Information
-------------------------------------------------------------------------------
Vol Page 2006-12233 Sales Date 02/17/06 Adjusted Sales Price $639,800
Sales Code 30 UNCONFIRMED SALE
Grantor: Grantee:
ROGERS, SCOTT M & ALLISON M SILVER, MATT J & BLUE, CATHERINE C
1612 NW KINGSTON
BEND OR 97709 BEND OR 97701
***
Site Address: 2332 NW CANDLELIGHT PL BEND 97701
Assessor Property Description
CITY VIEW PHASE II Lot: 24
Acct 184388 Map/TL: R 1-001 171230 DB 04900
MA: 5 VA: 26 Class: 101
-------------------------------------------------------------------------------
Vol Page 2004-61118 Sales Date 09/30/04 Adjusted Sales Price $96,000
Sales Code 33 CONFIRMED SALE
Grantor: Grantee:
SHEASGREEN,ALAN ROGERS, SCOTT M & ALLISON M
8309 SE LIESER POINT DR
VANCOUVER WA 98664 BEND OR 97709
***
Site Address: 2332 NW CANDLELIGHT PL BEND 97701
Assessor Property Description
CITY VIEW PHASE II Lot: 24
Acct 184388 Map/TL: R 1-001 171230 DB 04900
MA: 5 VA: 26 Class: 100
-------------------------------------------------------------------------------
Vol Page 1995-3642982 Sales Date 02/02/95 Adjusted Sales Price $41,705
Sales Code 30 UNCONFIRMED SALE
Grantor: Grantee:
LEWIS,JAMES R SHEASGREEN,ALAN
2518 NW GOODWILLIE CT 8309 SE LIESER POINT DR
BEND OR 97701 VANCOUVER WA 98664
***
Site Address: 2332 NW CANDLELIGHT PL BEND 97701
Assessor Property Description
CITY VIEW PHASE II Lot: 24
Acct 184388 Map/TL: R 1-001 171230 DB 04900
MA: 5 VA: 26 Class: 100
-------------------------------------------------------------------------------
Vol Page 1993-3242218 Sales Date 12/27/93 Adjusted Sales Price $37,900
Sales Code 30 UNCONFIRMED SALE
Grantor: Grantee:
CITY HEIGHTS INC LEWIS,JAMES R
1070 NW BOND STE 203 2321 NW TORSWAY ST
BEND OR 97701 BEND OR 97701
***
Site Address: 2332 NW CANDLELIGHT PL BEND 97701
Assessor Property Description
CITY VIEW PHASE II Lot: 24
Acct 184388 Map/TL: R 1-001 171230 DB 04900
MA: 5 VA: 26 Class: 100
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
d) Further down, there is tax and other information, but this is not really needed for our tutorial so I will skip the description.
7) Highlight the primary owner’s name, right click, and copy it to your clipboard.
8 ) Now, head over to the Deschutes County clerk site by clicking the link. The first screen you will see will be a disclaimer. Go ahead and click ‘I Accept’ after reading.
9) The next page will be the search page, go ahead and copy in the name of the current owner on the property that we are researching.
10) After clicking ‘Search’, you should see the following screen (or fairly close to it)
11) Now, the thing that jumps out at me is the second document. The Doc Type: is Notice of Default & Election to Sell which means that this record is going to be foreclosed on. Let click on the link title 2009-036611 and see what information we get. Our goal here is to track down the relevant documents pertaining to the property we are researching. You should get the following screen.
12) Do you see that link at the bottom of the screen? The one that says 2006-078298? Do you also see the words Deed of Trust / Mortgage? Well, that is the original mortgage document. Go ahead and click on the 2006-078298 link.
13) At this point, I would click on the link that says View Document Image and a .pdf of the actual mortgage will open. You can see a lot of useful information. After you are done taking a gander, head back a page to the Notice of Default record.
14) Click on the View Document Image and you will again download a .pdf, but I will point out several pieces of information. The first is that you can see the address and the second is that you will find the date the home will potentially be sold on the county steps.
Date of sale and location of sale.
Conclusion: This home is going to be auctioned on the first day of 2010. So I can’t see how it is possible that a sale will go through. For what its worth, this is what will most likely happen with this property.
- It will go up for auction
- The bank will ask too much for it so it won’t sell
- The bank will then place the home on the market for close to the original loan amount
- The home will sit empty for the next several years, falling into disrepair
At least that is what I have been seeing…
Anyway, I hope this will help you get started in making an educated buying decision. And something else that I always ask myself.
Who is making money off of me?
In this case…
- Your Real Estate Agent
- The Seller’s Real Estate Agent
- The Seller
- The Mortgage Broker
- The Bank
And I have found it very helpful not to trust the opinions of those who will make money off of me. Their motivations are different than mine. I guess what I am saying, is that ultimately you need to make a sound decision based on your own research, and not the sales techniques or encouragement of others. The list of professions above, and the people who work in them, have screwed a lot of people, in the past five years especially. So don’t get hosed.
If readers find this information helpful, let me know. I have other food for thought things to share concerning RE.
-later
Your tutorial was a fantastic read. Well done!
A few things to consider
“This home is going to be auctioned on the first day of 2010. So I can’t see how it is possible that a sale will go through.”
If an offer were placed on the property at or near current market value, there is a possibility the auction date will be postponed. It could be postponed for many other reasons also.,
“3.The bank will then place the home on the market for close to the original loan amount”
Most banks want to know what the property is worth in today’s market and go to great pains and expense to find out. They hire Real Estate agents and appraisers to give them estimates. These estimates can vary wildly sometimes. Nonetheless most REO hits the market at or near market value and oftentimes well below. Most REO properties sell within 90 days and many are now selling in less than 30. Bidding wars occur frequently and REO sales represent a signicant percentage of all sales.
“4.The home will sit empty for the next several years, falling into disrepair”
Most of the time this occurs prior to hitting the market. You might want to switch them around Several years sitting empty sometimes but not usually and they seem to be sitting for shorter lengths of time to me.
You’ve provided an excellent tool for those wanting to do research and advise folks use it as it will provide them with a wealth of information.
Thanks for the input Robert and for giving everyone something else to think about.
Jared,
Great article. Thank you for the very useful info on how to research real estate here in Bend. My wife and I have been waiting on the sidelines for prices to stabilize before we start seriously looking. Many individuals (mostly from the list you mentioned above) have been saying now is that once in a lifetime chance to get into a home with prices having come down as far as they have and the first time home buyer tax credit having been extended till April. I am very interested on what other “food for thought” on RE you have to share.
Thank you again,
Chris
Hey Chris, it was my pleasure. People can get over whelmed, so hopefully this helps de-mystify the process.
I also wrote some other thoughts in another post. And I’ll probably add some more posts down the line.
-later
jared
Jared,
First, terrific article. Second, when I read your “overview”, I was pleased to see that somebody else made the same conclusions about the bubble as I did.
Back in 2006 my wife and I were looking to buy a home in Seattle. We had looked a couple years earlier, and we were surprised at the price increases from 2001 to 2006. I kept saying “There’s going to be a correction.”
My wife in 2006 was reading a lot about NINJA loans, and was telling me about it. I actually got angry at her because I said “you read it wrong. If what you are saying is true [about NINJA loans], then in a couple of years we would be looking at the biggest depression since the 30’s”
Okay, she was right, and, unfortunately, I was right. I recall many friends telling us to buy because “real estate has nowhere to go but up”. I said, I don’t think so. There is a major correction coming.
The simple truth is that it did not require an advanced degree in economics to “see it.” All it took was looking at the simple facts, and interpreting the data. You did it. I did it. Many other did too.
Thank you for this article. I’ve been using DIAL since April, when we began to become interested in buying property in Bend. By the way, do you know of anybody with personal experience who purchased a home at auction in Bend?
Hi Ken, glad you liked it and I am hopeful when I hear that other people exist who saw the warning signs and had the patience to wait.
You are right about the advanced degree, it was not needed or wanted. I actually think it would have hurt to have one because the school of thought concerning economics was such, that a “Depression” was said to not be possible. Yet here it is.
To answer your question as to buying a foreclosure in Central Oregon. I know quite a few doing it now. But I disagree with most anyone who makes a purchase. Especially those who leverage themselves. I personally feel that the bottom is still 2-3 years off.
-take care
jared