Portland’s foreclosed homes for sale: Don’t expect a flood of distressed properties

The crushed economy and widespread unemployment won’t result in a flood of residential property foreclosures, predicts George E. Perkins, a broker with 20/20 Properties who has handled distressed properties since the high-mortgage interest year of 1985.

Holding back foreclosures: Current laws protecting homeowners and renters, and low interest rates.

“We have two assignments that were foreclosed on over a year ago and they are still occupied because the bank owners are unable to evict the occupants,” he says. “Also, with interest rates at historic lows, there isn’t any reason for a property to be foreclosed on unless the owner just walked away, perhaps for some other reason such as divorce, their death or medical reasons.”

There are about 100 Oregon properties noted as being bank owned for sale in the local listing service RMLS and only six are in Portland.

“I only found 11 properties in the entire Portland/Vancouver metro areas for sale that are owned by Fannie Mae,” says Perkins, referring to the Federal National Mortgage Association. “There was a time when that number would have been closer to 1,000.”

Buying a home seized by the lender is more complicated than a traditional residential real estate transaction. Negotiations and contracts are different, the owner is most likely out of state and the title search is limited, resulting in a special warranty deed.

But, the right bank-owned property, bought at deep discount and repaired, can rise in value.

How to insure you're getting a gold mine and not a money pit?

Perkins says sources and experience count. “Stay away from foreclosure websites, especially ones that charge you,” he says, since the information is dated.

Here are Portland homes that are bank owned for sale:

Foreclosed homes

9334 N. Tyler Ave. in Portland's St. Johns neighborhood is for sale at $157,900 by listing agent Leslie Edwards of Owners.com.Owners.com

9334 N. Tyler Ave. in Portland’s St. Johns neighborhood is listed at $157,900.

The bungalow, built in 1905 on a 3,049-square-foot lot, has two bedrooms, one bathroom and 879 square feet of living space with a full basement and cellar.

“This property is priced for the lot. Come take a look at the possibilities," says listing agent Leslie Edwards of Owners.com. “Subject property has outstanding liens, buyer’s responsible. Please contact the county for further details.”

Annual property taxes are $1,442. See more active listings.

Owners.com

17803 S.E. Caruthers St. in Gresham is listed at $229,800 by Leslie Edwards of Owners.com.Owners.com

17803 S.E. Caruthers St. in Gresham is listed at $229,800.

The ranch-style house, built in 1959 on a 6,969-square-foot lot, has three bedrooms, one bathroom and 1,032 square feet of living space. There is a two-sided fireplace, some hardwood flooring, patio off the dining room and one-car garage.

“This fixer sits on a nice level lot. Come take a look at this one to see if it’s a fit for you,” says listing agent Leslie Edwards of Owners.com.

Annual property taxes are $3,097. See more active listings.

Front Door Realty

10320 N.E. 6th Dr. In Portland's East Columbia neighborhood is for sale at $308,000 by listing agent Julie Baldino of Front Door Realty.Front Door Realty

10320 N.E. 6th Dr. In Portland’s East Columbia neighborhood is listed at $308,000.

The single-level home, built in 1943 on 0.33 acres, has hardwood floors, a formal dining room, living room with windows drawing in natural light, two bedrooms, 1.5 bathrooms and 2,388 square feet of living space. A partially finished basement could be used as a bonus room.

There is a detached garage plus an outbuilding with accessory dwelling unit (ADU) potential.

“Cozy little vintage home on huge lot with garage and shop space galore. Cash only, sold as-is, buyer to verify all information,” says listing agent Julie Baldino of Front Door Realty.

Annual property taxes are $4,772. See more active listings.

house

7625 S.E. Bybee Blvd. in Portland's Brentwood-Darlington is listed at $321,250 by Daniel Mal of Mal & Seitz.Mal & Seitz

7625 S.E. Bybee Blvd. in Portland’s Brentwood-Darlington is listed at $321,250.

The two-story, traditional-style house, built in 2007 on a 3,049-square-foot lot, has four bedrooms, 2.5 bathrooms and 1,792 square feet of living space.

“Bright and airy, smart and adaptable floor plan with tasteful builder-grade features. Maximize your living and entertaining space with the living room and plenty of storage space,” says listing agent Daniel Mal of Mal & Seitz.

Annual property taxes are $4,556. See more active listings.

house

3932 S.E. 16th Ave. in Portland's Brooklyn neighborhood is listed at $329,900 by Valerie Hunter with Damien Pogue of H & H Preferred Real Estate.H & H Preferred Real Estate

3932 S.E. 16th Ave. in Portland’s Brooklyn neighborhood is listed at $329,900.

The townhouse, built in 1995 on a 2,178-square-foot lot, has hardwood flooring, crown molding, granite kitchen counters, updated cabinets, deluxe range and stainless appliances plus three bedrooms, two bathrooms and 1,230 square feet of living space.

“Huge price reduction. Move-in ready home in a highly desirable neighborhood. Will not last,” says listing agent Valerie Hunter with Damien Pogue of H & H Preferred Real Estate.

Annual property taxes are $5,366 and homeowners association fees are $266 a month. See more active listings.

Mal & Seitz

4104 S.E. 74th Ave. in Portland's Foster-Powell neighborhood is listed at $419,900 by Daniel Mal of Mal & Seitz.Mal & Seitz

4104 S.E. 74th Ave. in Portland’s Foster-Powell neighborhood is listed at $419,900.

The updated ranch-style house, built in 1977 on a 5,227-square-foot fenced lot, has a new roof, neutral flooring, paint, electrical panel, vinyl windows, lighting plus an updated kitchen, three bedrooms, two updated bathrooms and 1,144 square feet of living space and a two-car garage.

“Generous ceiling heights and enormous room volumes throughout,” says listing agent Daniel Mal of Mal & Seitz.

Annual property taxes are $4,553. See more active listings.

H & H Preferred Real Estate

13231 S.E. Buford Court in Portland's Pleasant Valley is listed at $484,900 by Valerie Hunter with Damien Pogue of H & H Preferred Real Estate.H & H Preferred Real Estate

13231 S.E. Buford Court in Portland’s Pleasant Valley is listed at $484,900.

The two-story house, built in 2007 on a 6,098-square-foot lot on the end of quiet cul-de-sac, has new flooring, interior and exterior paint, stainless-steel kitchen appliances plus four bedrooms, 2.5 bathrooms and 2,766 square feet of living space.

A deck overlooks a forested area.

“Huge reduction. Huge vaulted master suite with a walk-in closet and soaking tub. Buyer to perform due diligence and verify all info,” says listing agent Valerie Hunter with Damien Pogue of H & H Preferred Real Estate.

Annual property taxes are $6,104. See more active listings.

— Janet Eastman | 503-294-4072

jeastman@oregonian.com | @janeteastman

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