Property Q&A in Portland>Question Details

Diane Comer, Home Buyer in Portland, OR

I'm very interested in this. But is it possible to purchase on home like this with a normal down payment, and

Asked by Diane Comer, Portland, OR Wed Jul 27, 2011

make payments? Or is this something that I have to have all the money for the entire amount? Please let me know... Thank you.
Diane Comer 503-984-7160

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For a quick run through of how buying a foreclosure home at a sherriff's sale, see my blog entry at
0 votes Thank Flag Link Thu Jul 28, 2011
They have all answered the question right - cash only. It is best to get in touch with a mortgage agent and find out what you can afford. Most foreclosures are fanciable. Then find an agent to show you around, one who has (like myself) lots of foreclosure experience!
0 votes Thank Flag Link Wed Jul 27, 2011
Hi Diane,

Foreclosure auctions aren't for the regular home buyer- they are really for investors, or for those with liquid assets they don't mind gambling with for the reasons already mentioned. You do need all funding available at the time of auction. After attending auctions I quickly found out that most homes that do go to auction are bought back by the lender to either become "Shadow Inventory" or a REO (lender owned home for sale).

There are still ways to get a bargain on a home. The trick is to find one that will qualify for a loan, assuming you will need financing as most purchasers do. Cosmetic fixers are the best as they just need updating and will qualify for a loan. You get to pick what and how it is updated. And it will qualify for any loan! Next up is a more challenged home- it needs a roof, sewer is bad, siding is falling apart, etc. This will take a special loan product, such as a FHA 203K (or similar) that will allow and finance repairs.

There is a whole curve to home pricing as well. Prices go up for the warm months, and down for the cold months. Investors will buy in the dead of winter as they know prices won't get lower. Most home buyers do so in the summer when school is out.

Also worth mentioning is the type of home to get a bargain on. Distressed property, whether REO or a short sale usually sell at a discount. HUD homes also sell at a discount, sometimes substantial. Another possibility is finding a home at auction (not a foreclosure auction). I see more and more homes selling this way, and you can still retain the normal sale aspect (disclosures, inspection period, financing and appraisal).

There are still programs out there to help you get the most for your money. You have to qualify though, so they aren't for everyone. Mortgage Credit Certificate, Urban Renewal areas, and Tax abatement for 10 years are all possibilities.

I have knowledge in all the above areas. If I could be of any assistance feel free to contact me.

Thank you,
Kevin McCarter
0 votes Thank Flag Link Wed Jul 27, 2011
Diane Comer,

There are many amazing homes in the Westmoreland, Sellwood & Woodstock neighborhoods competing with shortsales and foreclosures (1/3 of the Portland Market); in turn, home owners have been forced to reduce their prices and you receive the benefits even on traditional sales. For example, my listing on Evergreen is priced $10,000 less than a sold shortsale directly across the street with similar features, year built & sq/ft. However, if you have the cash and handy with "As-Is" construction an investment in an Auction property can be very rewarding.

Let me know if you would like to schedule a Property Tour - I'm in the neighborhood.
Galen @ 409-7164
0 votes Thank Flag Link Wed Jul 27, 2011
Foreclosure at auction require cash -but as has been said you can get short term money and then do a conventional loan shortly after to get the home if it is something you really want. You also need to know that if you are purchasing a home at auction it is "as is" - no inspections, no repairs, nothing. SO, if the home requires repairs in order to get the conventional loan, they would have to be done by you with your own money to get it up to par for a conventional loan. You never know what type of problems the home may have!
0 votes Thank Flag Link Wed Jul 27, 2011
To buy a foreclosure requires cash. If the home is financable thru conventional financing then we can organize special short term money, buy the property at the auction and then refinance thru a conventional lender.
Let's chat about these options and see if we can work something out?
Best regards, John Hatch
503 748-8310
Web Reference:
0 votes Thank Flag Link Wed Jul 27, 2011
Hi Diane,
Typically foreclosure homes that are auctioned off require cash at time of purchase.
0 votes Thank Flag Link Wed Jul 27, 2011
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