Best Of Bank-Owned Luxury Homes

Posted on 09/10/09 12:27 PM

Gone are the days when foreclosures where largely contained to subprime loans. These days roughly one-third of the people who are falling behind on their mortgages are in traditional “prime” fixed-rate mortgages – according to an NPR report. The Wall Street Journal reports that “America’s most credit-worthy borrowers are defaulting on their loans faster than those with poor financial records”.

Dozens Of Bank-Owned Luxury Homes In Portland Available

As noted recently on this site, Portland already has a 55-month supply of million-dollar-homes, on par with sunbelt hot-spots such as Phoenix. In recent months, the share of bank-owned properties in this category has risen steadily. Deep pocketed shoppers can now choose from several dozen of Portland’s bank-owned luxury homes in the +750k category, such as this one:

This 5,000 SF Stafford home on a three and a half acre lot was originally listed for $2.5M. Top of the line finishes, waterfalls and territorial views weren’t enough to entice buyers. The owners eventually defaulted and the bank repossessed this 4-bedroom luxury property, listing it at a 40% discount for $1.5M.

Prefer something more contemporary? How about this 4-bedroom new construction home in Hillsdale with expansive views of Southwest Portland, the river and beyond.

The developer put it on the market in fall of ‘08 for roughly $1.5M. Liberty Bank, the current owner, has marked it down by 50%.

Take a video tour of this home here.

Looking for the suburban superlative? Consider this 4,500 SF luxury home in Beaverton. It comes with an in ground hot tub, 5 water features, 4 separate patios and 4 1/2 baths.

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The previous owner was asking for $1.25M as recent as last fall. At 727k, the current owner appears to be somewhat more in tune with market conditions. It’s on tour here.

Needless to say, the Lake Oswego area is one of the main contributors to the luxury inventory (in distress). Here’s a 5-bedroom home in Lake Grove that started out at $1.5M. Would you buy it at half price? As of last month, that’s what the bank is now offering it at.

Increasingly banks are seeking out non-traditional channels to reduce high-end inventory. Much like its condo brethren at the Atwater Place, this six bedroom, five and a half thousand square foot home is headed to the auction block next week. What started out at $1.275M now has a starting bid of 219k.