Is a foreclosure home right for me?

If you’re new to the Portland real estate market and you’re considering buying a bank owned, HUD, or foreclosure home it’s best to know what you’re getting into before you finalize on any particular real estate.

Foreclosure or bank owned homes have been repossessed from the lender due to the borrower’s delinquency in paying their home mortgage. A foreclosure happens when the previous homeowner is unable to pay their mortgage and walks away from the home without communication to the lender. If there is adequate communication, the lender may choose to short sale the home, modify the mortgage, or refinance. But in less the mortgage payments are up to date, the transaction can move into foreclosure within a certain amount of time.Portland Foreclosures

Related Article: What Do I Need to Know About Buying a Portland Home?

Foreclosure homes typically mean that the previous homeowner is in a state of depression about default thing on the home loan. Many times they can feel resentment towards the lender and take it out on the house itself. This is while find a lot of houses and properties that have been damaged and in need of great repair. While this is not always the case, it is more likely that you’re going to find a home that will need to some TLC. Each home is going to be different as each case is different. Short sale homes on average tend to be in a little bit better condition than foreclosures.

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Some of the worst foreclosures can be void of appliances, cabinets, walls, and be left in an older filled state of disrepair. While this is typically on the worst side of things, it is something to consider and something to be expected if you’re considering purchasing a Portland foreclosure.

There are, on the other hand, some great homes for sale that don’t need a lot of major repair but simple cosmetics and can be easily flipped and re-sold for a higher amount. Many investors go for this type of property where they don’t need to put a lot of extra money back into the home to gain a good rate of return. But, whether you are living in the home, or flipping it and reselling it, you’ll want to be aware of the foreclosure conditions that you could potentially come across.

Read more on: Portland Foreclosures and Short Sales

On average, foreclosure and bank owned homes can tend to be marked 25 to 40% below market value and even more in some cases. It’s likely that those priced far below market value will need those extra funds to bring the home back into livable conditions.

Equity is certainly meant to be gained on a foreclosure or bank owned home. If you’d like to start looking at foreclosures in the Portland real estate market area, I would love to personally show you these bank owned homes, possible short sales, or any property that might fit your budgbudget and your need.  Contact Me anytime for more details.