How can a first time home buyer purchase a foreclosure property?

Asked by Peter Armstrong, Portland, OR Thu Jun 25, 2009

Want to take advantage of $8000 tax credit, etc.

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Fri Jun 26, 2009
A first time homebuyer is typically defined that you have not had an interest in real property within the last three years. If you are buying an REO (bank owned) you are best suited getting pre-approved, this way the bank is more willing to accept an offer knowing you have already qualified for the mortgage. Do expect a little more time to close... I have seen a few more conditions coming through from underwriters on property requirements, especially if you are going FHA or relying on MI (mortgage insurance).

Best of luck!
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Carla Muss-J…, , Portland, OR
Fri Jun 26, 2009
Unless you are paying in cash, you need to take the first step -- go to a mortgage professional and get a loan in place!

Taking advantage of the tax credit is a great way for a first time buyer to get reimbursed by the government for some of their costs. However, it's an "up to" amount.

The answers you're getting are okay, but as I state: unless you're paying with cash, you WILL neeed to borrow money. Get that in place FIRST, then talk to me about the next steps!

Representing Buyers Since 1999
Carla Muss-Jacobs, ABR, CEBA, e-PRO
EBAPortland, LLC
YOUR Exclusive Buyer's Agent
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The Stephen…, Agent, Portland, OR
Thu Jun 25, 2009
REO's are a great way, since the title is free and clear. REDC auctions are also good, but it is coming up very very soon - June 28th. I can help you with either, best of luck.
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Craig Loughr…, , Oregon
Thu Jun 25, 2009
Hi Peter,

The only way that most buyers can purchase a foreclosed property around the Portland region is to buy it from a broker with access to the "mulitple listing service" that is local in relation to where the property is. In the tri-county area, that MLS would be the Regional Multiple Listing Service (RMLS). In Marion County and the central Willamette Valley, it would be the Willamette Valley Multiple Listing Service (WVMLS).

Buying a "short sale" is another way to get a good home at a super low price, sometimes even better than a foreclosure. However, short sales take longer to close, and present some extra risks that some buyers are not willing to take.

I have handled both foreclosures and short sales, and I do a lot of work with banks, helping them with their REO portfolios. I also am an Accredited Buyer Representative. If you have additional questions, feel free to post them here, or to contact me directly.

Best of Luck,

Craig Loughridge
Bryson Realty
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Roberta Nops…, Agent, Lake Oswego, OR
Thu Jun 25, 2009
Hi Peter -
It is a great time to be looking for advantageously priced homes, whether they are foreclosures or just motivated sellers. Foreclosed property is bank owned or commonly called REO property. You have probably also heard the term short sale. This is likely to be a 'pre-foreclosure' home. Meaning the seller may owe more on the home than it may sell for in the current.

I have experience in both. As an accredited buyers representative, I would be happy to assist you in your search and help you to understand the buying process. Give me a call or visit my website My map search is easy to use!

Roberta Nopson
Accredited Buyers Representative
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Thesa Chambe…, Agent, Bend, OR
Thu Jun 25, 2009
Peter - your first step would be to find an agent to help you - buying a foreclosure is not necessary to obtain the tax credit - any home will do and there are other specifications for this credit. I am an agent but not in your area. I wold be happy to help you find a great agent in your area, I do know a lot of great agents in the PDX area - some specialize in more specific areas than others.

Buying a foreclosure (bank owned home) can be no different than buying from a seller.

Let me know if I can be of assistance setting you up with a great agent in PDX.
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