Yes, you can get a good deal with a short sale if you're patient and willing to do the leg work and deal with the competition. Having cash would help your cause greatly.
The other way to do it would be to look at the current inventory and find a home that you feel is priced right or under market and make a deal that way. A good deal is NOT getting a home for less than the asking price, it's getting a home for less than market value. If you get 5% off an over-priced home, you still might be paying too much. If you pay full price on a well priced home, you're getting a good deal. Point is, think about the overall value, not just the price below asking.
John L. Scott-NE
The short sale market (where homeowners owe more than what the homes are worth) continues to grow across the country. Portland Oregon is no exception and there are deals to be found buying a home this way - but as others have said -- be patient. You will have to wait and wait and no sale is guarenteed until the lender says so. Banks are in no hurry to loose money. They won't help with repairs either - keep in mind, if the homeowner couldn't afford to keep up his mortgage payment, you can bet he wasn't spending money on home maintenance.
My advice... Find a Realtor who is experienced with foreclosures and short sales. There are more hoops to jump through than a "regular" purchase and having someone who can guide you through the process will save you valuable time and money. The Bank who hold the mortgage don't have to play by the same rules as a homeowner does and understanding this up front is important.
The current Portland market if full of deals! Don't look only at short sales -- you might be missing a great opportunity. Not to mention - you might be able to work home repairs into your deal - where you could come out ahead in the long run!
Keller Williams Realty
I've bought and sold foreclosures in Portland and around the country for years. If your interested in getting a good deal it's important to know what your going to do with the property turn it for profit, live in it, rent it etc. Also are you handy, no doubt the home will require repairs. If you want a list of Foreclosures sent to you or you just have questions visit my website or give me a call at 503-539-3819
Here's a really good source of information on foreclosures and short sales ---- the basics, process, expectations.
There are other links to more stories....take the time to get educated about this process.
If you are buying a pre-foreclosure deal be prepared for competition. We have out bids on about 5 for clients in the past weeks and have got 2 deals through. There was anywhere from 3-9 offers and it actually drove the prices up to where the homes were just ok deals.
What Rick said is correct. Be Patient. The Banks will take their time and they know they are going to get you sweating over the deal. So hang in there.
Let me propose something totally off the wall. Get a good agent and work the base of existing homes for sale. Many sellers are in the mood to deal. And frankly almost everything I see looks like a "good Deal" in some way. There are some exceptional values and they are selling in 1-5 days. They stand out from the rest. So get an agent, get good updates on new homes, and go to work!
The good values will stand out foreclosure or not. Be an active Buyer!
I hope that helps.
Best wishes to you;
Dirk T Knudsen
Re\Max Hall of Fame
#1 rated Production Re\Max Team in Oregon
The short answer to your question is yes. This is definitiely a feasible way to get a "deal".These types of sales are usually called "short sales". This is where the owner is behind in his/her mortgage and owes back payments as well as late fees and other fees sometimes resulting in a situation where they owe more than the home is worth. The lenders will sometimes take a significant loss to get the home sold before they are forced to foreclose (Lenders are not in the business of owning homes). A lot of the time this results in the home being sold for less than market value.
The key to finding a deal in the pre foreclosure market is having lots of patience. Dealing with banks can sometimes be very frustrating. A good real estate agent with experience dealing with short sales can really help.
We have lots of experience with short sales. Let me know if my team can be of any assistance or if you just have questions that I can answer.