Banks Pick Up Another Fifty Properties in Portland – This Week
In Portland, banks take back 50 properties this week alone
As Portland’s real estate market continues to slide, the number of bank repossessions continues to grow from one week to the next. Banks took back another 50 properties within the Portland city limits, up a dozen from last week’s count. Once again Happy Valley along with several other areas east of I-205 are among the top contributors on Portland’s east-side. On the West you’re likely to come across some interesting opportunities in Forrest Heights and South Waterfront.
Foreclosure sale prices well below market rates
Bank-owned properties, also referred to as REO (real estate owned) can represent good investment opportunities – especially for cash buyers. But don’t expect a steal on every bank-owned property. Each bank/lender works a little differently, but they all have similar goals. They want to get the best price possible and have no interest in “dumping” real estate cheaply. Generally, banks have an entire department set up to manage their REO inventory.
Here’s an example of a bank-owned property with good prospects. It was picked up by an out-of-state bank this week and likely to hit the market in the not too distant future:
This 835 SF unit at the McKenzie Lofts in Portland’s Pearl District sold in late ’06 for 312k. Some time thereafter the owner defaulted on her 250k loan by about 20k. Eventually the bank, New Century Mortgage Corp stepped in and took it back this week – for 224k. When it’s time to sell the bank will – at the very least – want to recover the book value as well as any fees incurred over the last couple of months. There might also be a tax lien on the property, but chances are the bank will negoatiate a removal with the IRS – it’s bailout season after all! Overall we are looking at a threshold somewhere in the mid-to-high 200s. Similar units at the McKenzie Lofts are currently selling for 315k – such as unit #515 (slightly smaller unit). UPDATE: unit has been listed at 279k.
Interested in the big picture. Read more here.
