Foreclosures continue to be an abundant source of real estate bargains. Even here in the Northwest where values haven't declined as much as in other parts of the country, foreclosures continue to rise. Although these distressed properties often need improvements, with some sweat and smarts, you can polish these diamonds in the rough to create equity and add to your net worth.
There are different stages in the foreclosure process, and we at Goodson Properties are here to help you understand them all. To get the right foreclosure property it is important to be flexible about the foreclosure stage it is in. There are bargains in all the following stages: Pre-Foreclosure (Short Sale), Bank Owned (Bank foreclosed), and Non-MLS Listed (Investor Foreclosed). We cover this full spectrum and can help you find the right property in all three phases.
Click here to see Foreclosures in Southwest Washington.
Click here to see Foreclosures in the Portland Metro Area.
Pre-Foreclosure (Short Sale)
When homeowners get behind on their mortgage payments, lenders start the foreclosure process. Homeowners may, or may not, continue to occupy their house during this stage. Because a foreclosure is a timely process, there may be an opportunity to buy a foreclosure property in the midst of the foreclosure process. To a buyer and seller, this is a pre-foreclosure sale. To a bank, this is referred to as a "Short Sale", because the bank allows a sale "short" of the foreclosure date. Plus they will receive an amount "short" of the mortgage principle balance due to them. Because of this, the bank needs more time than a typical sale to get all the investor and governement sign offs on taking a loss. However, if you can be patient, and possibly even brave enough to submit multiple offers on multiple short sales, you may get lucky and land a short sale at a real bargain. Both banks and home sellers have something to gain from a short sale: Banks can avoid a costly legal foreclosure, and home sellers can avoid a foreclosure on their credit which could remain for up to 10 years. Because of this pressure on the two parties to sell before the foreclosure date, you can get a fantastic bargain.
Click here to see a list of Short Sales in Southwest Washington.
Click here to see a list of Short Sales in the Portland Metro Area.
Bank Owned (Bank Foreclosed)
Once the foreclosure auction date arrives, the bank often will bid up to the mortgage amount owned to them. This most often results in the bank owning the property. There is great opportunity for a home buyer to capitalize on a bank owned property. Banks are not in the real state owning business, they are in the lending business. They have an immense amount of pressure to drop these dead assets from their books, even if it means taking a sizable loss. The beauty of these properties from a home buyers perspective is that you don't have to wait very long to get an answer as to whether your offer is accepted or not. Once a bank owns it, they can't get rid of it fast enough!
Click here to see a list of Bank Owned properties in Southwest Washington.
Click here to see a list of Bank Owned properties in the Portland Metro Area.
Non-MLS Listed Foreclosures (Investor Foreclosures)
Sometimes an investor with cash will buy a foreclosed property at auction. We at Goodson Properties have cultivated relationships with these investors. We can often offer you these foreclosed properties even before they are listed with the MLS. If we respond quick enough, the investor who bought in foreclosure with cash can keep their profits small, and the home buyer can bring their financing and get an incredible deal. The key here is working closely with a Goodson Properties agent, having your financing in place, and striking quickly.
Click here to see a list of Non-MLS Foreclosures.