Quick Search For Foreclosures

Have you thought about buying a foreclosure property or short sale for your investment portfolio? Are you a home buyer and want some of the best deals in Portland homes for sale? Buying REO properties (Real Estate Owned by lending institutions) is the easiest and least problematic way to invest in foreclosed properties.  Short Sales (sometimes called Pre-Foreclosures) also allow you to purchase property at prices not seen in years. (See the Short Sale page for more information.) You can search the MLS for Foreclosures and Pre-Foreclosures in the Quick Search on the left. The process of a lender foreclosing on a property involves 3 stages. Each stage has opportunities and pitfalls for the investor.

Foreclosed homes in Portland Oregon

The process of a lender foreclosing on a property involves 3 stages. Each stage has opportunities and pitfalls for the investor.

Stage 1 — The Pre-Foreclosure period. This is when a borrower who has stopped making loan payments receives a notice of default form the lender. While this situation is difficult for a property owner, an investor can create a great opportunity for investment and provide the property owner with a way out of their financial difficulties.

Success here requires identifying properties in default, evaluating them as investments, negotiating with the owner (and sometimes the lender), and closing on the property.

Pros: Good opportunity to buy property at a discount. There is time for investigation and research. Sometimes a creative sales agreement is possible.

Cons: Hard to locate such properties. Other investors compete for these properties. Negotiating with holders of loans can be difficult. Be sure you’re negotiating with the owner.

Stage 2 — The Auction on the Courthouse Steps. Not for the faint of heart. There’s the most reward where there’s the most risk—and you’ll find it at the courthouse steps. This is where the property is auctioned off to the highest bidder. You’ll be bidding against the lender, junior lien holders and other investors. And the auction moves very quickly.

Pros: Great discounts on properties. If you know your real estate, this is an opportunity to buy way below market value.

Cons: No time to inspect most properties before the sale. Be very careful about title issues. Most sales are cash or 10% down & the balance due in days or weeks. This deters most investors.

Stage 3 — REO Properties are just a click away. Real Estate Owned (REO) properties are taken back by the lender to sell and recoup at least some of the lender’s losses. Lenders don’t want to own the property. They want dollars to lend again. Most lenders list these properties with Realtors in the MLS.  You can search for them on the Foreclosure Quick Search Box at the top left of this page.

Pros: Easy to find properties. Time for reflection & analysis. Usually not a worry about title issues Underlying loans are wiped out. Taxes are also usually up to date.

Cons: Less chance to buy at a “deep” discount; usually a good deal rather than a great deal.