Portland Foreclosures
While on the look out for foreclosures in Portland.. I came across this 4 bedroom in a pretty desirable area. Buying a foreclosure is kind of different than a normal home so I thought I would talk about this in my blog. Foreclosures usually take little bit longer to close because most of the time it will be a short sale. Short Sales usually take about three to six months to close. Although it can be a lengthy process it may be worth it when you get the home under Fair Market Value or FMV.
This SE Portland home is in the desirable Eastmoreland Heights neighborhood. Eastmoreland is considered "close in" and also located by the trendy Sellwood area. I would definitely drive through if you're ever in the area. Trees, parks, shopping, transit, and restaurants are just minutes away.
FREE FORECLOSURE LIST
CLICK ON THE IMAGE to the left to sign up for AUCTION ALERT. This will send you a notification every time a foreclosure comes on the market and it's free. Foreclosures are always a good place to start. If you don't find a home that meets any of your requirements then continue your search of retail homes.
What to look out for while buying a foreclosure
- Repairs: Roof, appliances,Air Conditioner,termites,mold,and structural damage need to be carefully inspected. Banks sell these homes in “AS IS” condition.
- Back Taxes: Check with the county in regards to back taxes owed.
- Special Contracts: Majority of Banks insist you use their contract “To Purchase”,
- High closing costs: Negotiate for the Bank to pay for Buyers Closing Costs.
- Repair Costs: Have someone who can give you a “Dollar Amount” on what it costs to repair the home you. Add that to the budget.
Thank You for taking the time to read my blog and I hope you found it useful. PortlandHomeAuction.com is a great place to start your search. Not only for foreclosures but for all homes on the market. Please let me know if you have any questions. I would love to help. I have been in Real Estate since 2003 and am very active in the community.
Tips for buying a Foreclosure in Portland
1. Learn about the different types of properties and the foreclosure process.
Not all foreclosures are the alike! Educate yourself on the difference between the three basic types of properties, including notice-of-default (NOD), notice of trustee sale (NTS), and real-estate-owned REO, as well as the positive and negative aspects of buying at each stage of the foreclosure cycle.
As a rule of thumb, the best savings can be made at the pre-foreclosure stage, where home owners can avoid a foreclosure and lenders can save the time and cost involved in going through the process. Another critical point in the process is immediately prior to the auction date, when all parties might be most open to a last-minute solution.
2. Secure financing early
It’s important for a buyer to be pre-qualified before engaging in discussions with a seller. This ensures that the buyer is in a financial position to purchase the property, and is in the strongest possible position to negotiate.
3. Engage a real estate agent as a “buyer’s representative”
There’s a distinct difference between a buyer’s and a seller’s Agent. A Buyer’s Agent has the home buyer’s interests at heart, and are charged with finding the right property and negotiating the best price for their clients. Picking the right real estate agent will make your life much easier. Ideally, select an agent who specializes in the foreclosures.
4. Do your homework
Purchasing foreclosure properties is somewhat more risky than buying traditional real estate properties. But, with that risk comes reward in the form of much higher potential savings. With the right examination and due diligence, buyers can significantly reduce the risks. As with any purchase, timing is everything! But, it makes sense to give any property under consideration a thorough examination, including determining its condition and value, finding out the amount in default and the remaining loan balance, and running a legal investing report to make sure the property is free of any financial liabilities. Of course, it never hurts to foster a positive relationship with the seller!
5. Make a realistic offer
If you want to be taken seriously as a buyer, you must be realistic when preparing an offer. Lenders aren’t likely to give properties away, particularly in a real estate market where prices continue to rise. Additionally, homeowners in financial distress may be difficult to deal with, particularly early in the foreclosure process. An educated buyer—one who knows how much is owed on the property and what its market value is—can usually come up with a realistic offer; one that offers significant savings, while meeting the requirements of the lender.
Aaron Majors - Principal Broker
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