Foreclosures are up 129%

Asked by PDXOutsider, Portland, OR Fri Jul 11, 2008

in Oregon in June '08. Does anybody out there have a positive story about trying to buy a foreclosure? All I hear are horror stories.

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Vicky Chrisn…, , 20176
Fri Jul 11, 2008
Wow, my experience is so different from Dirks. Almost the only thing I've sold this year has been bank owned properties. They're a pain, but until recently, you couldn't get a short sale to go through. Just make sure you're getting a good deal on the REO. It's a hassle, but not a nightmare. The key is an agent who understands the process and can prepare you.
2 votes
Dwija, Home Buyer, Temecula, CA
Wed Jul 30, 2008
I think some of the answers you're getting are drawing a distinction between "foreclosure" and "REO"- it seems they're referring to the initial auction of a foreclosed property as a "foreclosure" and the selling of a bank owned foreclosed property on the tradtional MLS as an "REO". If foreclosures are up 129% in Oregon, most of those will not sell 'on the courhouse steps' and they will go onto the MLS just like a traditional sale, except the owner will be the bank instead of an individual. The purchasing process at that time will be exactly the same as a traditional purchase, except maybe take longer. The horror stories usually revolve around short sales- I know around here people are just waiting for short sales to foreclose so we don't have to deal with the red tape. It's definitely sad, but totally true. Hope that helps a little!
1 vote
Hank Paterson, Agent, Beaverton, OR
Thu Jul 31, 2008
The saying goes "A foreclosure is where a short sale goes because the banks can't handle the short sale transactions" It has proven tough to get a short sale through in some situations. Portland has far less short sales and NDF's per home than all but a few other markets. However the banks are still slow to react to short sale offers as there plates are full from other states higher activity rates.

I advise folks that they need lots of patience when dealing with a short sale as it can take months to get an answer and sometimes an answer never comes. I have known plenty of happy people who had the patience and worked with a good agent to get a good deal on a short sale. So we know it can get done. You just have to ask yourself is it right for you?
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PDXOutsider, , Portland, OR
Thu Jul 31, 2008
Good answers, I was referring to all types of foreclosures: short sales, auctions as well as bank owned. I know we're not swimming in foreclosure's yet, but they are defininitely on the rise.

We looked at a few short sales out of curiousity, most would have been better to tear down and not worth anything close to the loan balance.

Buying from a bank is certainly the easiest route, but then you're competing with the full buyer pool, so it's not much of an advantage anymore, is it?
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Tom Inglesby, Agent, Portland, OR
Wed Jul 30, 2008
I would check in to some short sales. Most buyers back out with their offers after 3-4 months and then when the bank is finally ready to sell all the buyers are gone so the bank now has a price and is ready to sell. Foreclosures are a very small part of our sales and you do need all cash to buy off the court house steps as is. The key issue now is where the interest rates are going, they have gone up 1/2% in the past 9 days and that really hurts your buying power. I would say find a knowledgeable agent and get educated quickly before the rates go up and hit you for $20,000-$40,000 in reduced buying power. Good Luck
Tom Inglesby, Broker
RE/MAX Equity Group Inc.
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Hank Paterson, Agent, Beaverton, OR
Wed Jul 30, 2008
I agree with Dirk. There are not really many properties out there. So if you have cash in hand and patience you can head to the courthouse. However be prepared to track a property to auction and then it does not go on because the date was changed or the property was brought current or sold before auction.

A short sale and or REO may be a better bet. A good agent can help you search these. Be prepared for a somewhat long a transaction. But if you are patient you may get a good deal.
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Dirk Knudsen…, Agent, Hillsboro, OR
Fri Jul 11, 2008
Bottom Line is NO.

They still represent a very small amount of our market. In order to get a good value you have to go with a short sale and bid up the home with other people or you have to get the info and take your chances at the court house steps.

It can be done...but it takes all cash and a strong consternation as well as an arm breaker to get the people out. There are just not enough foreclosures here (yet) to make a great deal in most cases.

Having said that there are a few out there.

Your comments are not ill placed.

Hang in there.

Dirk Knudsen
Re\Max Hall of Fame
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