These and many other questions are what determine the best avenue for you to purchase a distressed property and the bottom line is to align yourself with a Buyers Agent that knows the market, you can trust and will work hard for you because at the end of the day getting a great house at a great value is the way to go. This is even more critical if you are an investor out of the area.
Marvin is right. If you want answers to your question you need to elaborate more. After being a Mortgage Broker in Portland Oregon for over 20 years, I can tell you that if you want precise answers you need to ask precise questions. We wait your questions and are here to help.
Check out my website at http://www.thePdxRealtor.com, I have lots of blog posts on foreclosures including tips to make sure you get the home you want. Also, let me know if you want me to send you a list of current foreclosures on the market in the Portland area and I would be happy to do that.
~Betsy Ballantyne email@example.com
Broker, RE/MAX Equity Group
You have a lot of answers to go through. In my opinion, the MOST IMPORTANT thing to pay attention to is finding the BEST DEAL! No matter If it is a foreclosed home, a short sale, a regular sale. You need to find an agent who is the best at negotiation. This is the key ingredient in getting the best deal in this market.
Always follow the money!!!!
When you are ready, would love to help you!
All the agent's answers have great information on purchasing a foreclosure. I am the foreclosure listing agent for Freddie Mac homes in the Portland area. I can tell you there are basically three processes for foreclosed homes, at the "courthouse steps", "online bidding", and "publically listed" through an agent on the multiple listing service. Few sell at the courthouse because the mortgage holder places a minimum bid for what is owed them on the property. This price is usually higher than the current market value given the condition of the home so the bank ends up with the property. After this process the bank lists the property with an agent or online auction company. Either way, it ends up listed with an authorized listing agent and they (or an experienced buyer's agent of your choice) are your best source for help for selecting the right home.
Have fun with your search and let me know if I can help.
The very best way period is to use all cash and negotiate with an owner who is within the curable period in the process. If you mean a property thats already been through the FC process and is owned by a lender, thats also depends on how and when you contact the lender. Not all REO (Real Estate Owned) properties are listed with real estate companies---at least not right off the bat. Contacting smaller lenders and credit unions or going through the court house records to track private foreclosures can get you a leg up on the buying competition. County tax foreclosures are another avenue.
Trying to bid on the courthouse steps can be very trying. Professional bidders play games. Emotions can run prices up. And---you may be buying a total junker without knowing what you are getting, or have other liens on the property that no one knew about or that YOU didnt know about. I used to go to auctions in San Jose, representing a group of investors. It was a jungle atmosphere and fraught with potential traps and problems. In your state (Im an ex Santa Cruzan) buying foreclosures is so tricky and dangerous that its almost not worth the effort.
Then you have JUDICIAL foreclosure actions where there is no auction. The judge awards the property to the lender and then its listed or auctioned.
If we stick to vanilla lender owned foreclosures and you dont have cash, as others have said you need to be qualified and have all your ducks in a row for financing. Usually the homes been inspected for the most part nd you know what you are buying.
Watch out for all the internet sites trying to sell lists of properties in default, etc. They all get it from the public records or even may be forwarding info that they got from another company just like theirs. Scams abound. Everyone has their hands out in one way or another.
I'm not sneezing at $13,000 or an 8% discount, but if, like many people, you think you're going to buy at 50% you're going to be sadly disappointed. Most REO's sell at about 5% below "market", but the hard part of that number is that you almost never know the condition so it's harder to know the "market price". (My escrow is in pretty good shape except that the AC compressor is missing. So see if you add $4-5,000 to replace that, you're back to my 5% difference).
See my blog post at http://bit.ly/r3HmIN for a little more information on the foreclosure process.
Best of luck!
If you are going to be financing the purchase, the first step is to talk to a mortgage professional. Next, make sure you protect yourself by connecting with a realtor you can trust. A realtor can help you find suitable properties and look after your best interests during the process. The process for purchasing a bank owned home is similar to a privately owed home. However, things like the condition of the home, lack of disclosure and the initial & inspection negotiations may require more guidance. Short sales are also an option but have additional complications that you'll want to be aware of before you consider this type of purchase.
Always happy to discuss in more detail.
Best of luck,
If a home doesn't sell at the county court house after foreclosure, then the home will be listed with a Realtor. If You don't have the cash to purchase a home, then you must get preapproved with a mortgage broker, before looking at bank owned (FORECLOSED) property, because they sell very quickly. Sign-up with a SFR, or REO pro agent, like myself, to look out for your best interests, and put in a good offer. The bank owned properties are priced very competitively (65%-80% of their actual market value). -Jewel Stockli, SFR, REO pro, Prudential NW Properties 503-936-2432
Make sure your preapproved first with a loan officer. Then connect with a real estate agent. We can help you with your search for a foreclosure and help you through the buying process. We can search specifically for foreclosures too so it helps eliminate the leg work for you! I hope that helps!