Foreclosures
Foreclosures in Beaverton Oregon
Are you an investor or home buyers wanting a great deal in today’s real estate market? Are you thinking about buying a foreclosed property because they are terrific values? Read on to educate yourself and decide how to proceed.
Real Estate Owned (REO) is property that has been taken back by a lender from a borrower in loan default. It is a great way to buy at the low end of market value without the risks of buying on the courthouse steps. You can search for this type of foreclosed property in the box at the left.
Short sales, also called Pre-Foreclosures-are totally different. You can read about them on the Short Sale page of this site. Many borrowers in the pre-foreclosure stage list their homes with realtors as Short Sale properties. You can also search for them in the box at the left.
Foreclosed Homes in Beaverton Oregon
The process of a property going into foreclosure is outlined below along with your opportunities and pitfalls in the purchase process.
1st Stage: Pre-Foreclosure
When a home borrower has quit making payments, the lender(s) send the borrower a notice of default. You, the creative investor can profit while helping the borrower out of a difficult situation. You’ll need to find these properties, see if they are good investments, negotiate with the borrower (owner) and often with the lender, then close on the home.
PROS You may be able to buy discounted properties. You’ll have time to research the property and be creative about the purchase.
CONS It’s difficult to find these properties. If they are easy to find, you’ll have competition from other investors. Negotiating with the lender can be very frustrating. Make sure you know who is the actual owner.
2nd Stage: Courthouse Steps Auction
Do you have nerves of steel? You’ve probably heard stories of investors buying for a song on the courthouse steps. Most investors don’t announce when they find they only bought the second loan and now need to make payments to keep the first lender from foreclosing on them.
At the courthouse the property is auctioned to the highest bidder. The lender, junior lien holders and other investors will be there. Snap decisions must be made in a charged environment.
PROS You can get a great deal. Savvy investors can buy at a great discount.
CONS You can’t take time to inspect the property or research ownership. Title issues are tricky. Do you need a loan to purchase? Most auctions are cash only or 10% at the time of sale and the rest payable in days. This is difficult for most investors.
3rd Stage: Search this web site for REO Properties
When the lender takes back the property, it goes to the lender’s REO department. (Real Estate Owned). The lender wants money to use for new loans, not to be a property owner. So the REO department lists these properties with a Realtor who places foreclosed properties in the MLS.
Search for them in the Foreclosure Quick Search Box at the top of the page. (*****link here to that box??)
PROS The ease of finding these properties is a big plus. Investors have time to compare, analyze, and visit the properties. Title issues generally go away because underlying loans are wiped out and back taxes usually are paid.
CONS You’ll pay more for this property from REO than on the steps of the courthouse. Expect a good deal, not a great one.
