A viewer recently asked about foreclosed properties and what happens to them in Portland. I’ll explain what happens to these homes and why things are a bit different in Oregon.
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We wanted to answer a really good question we recently received from a viewer: what happens to foreclosed properties?
 
First, the bank needs to go into the home and clean it up to the point of being in marketable condition. Their goal is not necessarily to make the most money possible on the sale of a foreclosed home, but rather to lose the least amount of money possible.
 
The other issues that you’ll see with this—and the reason some homes sit abandoned for so long—is that the banks have to clarify the title. In Oregon, to do this you actually have to go through a judicial process. 


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In Oregon, the home actually has to go through a judicial process.
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Since it has to go before a judge, there is a real backlog of these homes while the banks are working to make sure they have a clear title. This will help the bank ensure that when they sell the home, the new owner won’t have to deal with any clouds on the title.

There is typically not a huge negative impact, but if prices do continue to go down in the near future, we could possibly start to see more foreclosures.
 
If you have any other questions that we can answer for you, give us a call or send us an email and we’ll talk soon.