Oregon Residential Real Estate
For many Oregon homeowners, their homes are their largest financial investments and purchases in life. It should come as no great surprise then that many property-owners in the Pacific Northwestern state consider their homes precious and valuable assets, worthy of taking great measures to safeguard them, especially when buying or selling residential real estate.
How Does Mortgage Foreclosure Sale Flipping Work?
The media is full of coverage about record-high foreclosure and short sale proceedings across the nation in today's economic downturn. Cable television broadcasts do-it-yourself and hit reality television shows on real estate flipping. Even infomercials have joined the mix and tout how to make money buying properties on the cheap at foreclosure sales and then flipping them, in hopes to resell at a quick profit. How does this work exactly? Can you do it?
The process of buying foreclosure properties, fixing them up, and then reselling them at a profit is a high-risk investment business. Those who do not have the funds; experience in real estate, contracting, home improvements, and/or construction; do not embrace risk; and do not have access to capital in the form of bank financing should probably not approach this field casually or with grandiose expectations.
This is not to say that prospective purchasers cannot succeed in these types of sales. They can, and the bargains are certainly available and plentiful in today's economy. That said, it is prudent to enlist the professional services of a local licensed real estate agent and residential real estate attorney to accomplish these crucial objectives:
- To make a reasonable and profitable bid
- To obtain good title to the property
- To obtain all of the necessary documentation to make the sale legitimized, legal, and valid
Then, at the end of the day, the most successful candidates in this sector of the market are those who are able to shoulder a high degree of financial risk.
How Do Sheriff's or Foreclosure Sales Differ from Traditional Residential Real Estate Purchases?
Unlike traditional residential real estate purchases in a standard seller and buyer transaction, sheriff's or foreclosure sales do not:
- Give buyers the chance to inspect the property
- Provide assurances and warranties about the property's clear title
- Provide the element of time for any legal, financial, or other preparations
There is also no title insurance policy or attorney's title opinion involved in these expeditious courthouse steps sales. In fact, none of the traditional measures of protection and safeguarding for the purchaser are in place. As a result, the buyer must be vigilant and proceed with caution.
Further, the deed that a sheriff's sale purchaser receives has no covenants, warranties, or representations. There is also usually no remedy available to the buyer if the title for the property is defective or otherwise clouded. Because the soon-to-be evicted mortgage defaulter resides in the subject property at the time of the foreclosure sale (usually), that borrower is likely to be non-cooperative, hostile, and antagonistic to any prospective buyer seeking to inspect the outside, let alone the inside, of the property. The borrower usually has a brief period post-sale to remain in the property, as well, during a mandatory period of redemption. That period can be one-half to a full year. Soon-to-be evicted borrowers typically do not maintain the subject property or its grounds, pay taxes, or maintain utilities during this period. Some may even harm the property. For these reasons, often the bank that placed the mortgage is the only bidder at such sales. The lender is the only one invested in the subject property to the extent of wanting to bid and become further entrenched.
Locate a Local Oregon Residential Real Estate Lawyer Today
Oregon residential real estate attorneys represents clients pre-sale, during a sale, post-sale, and in any subsequent litigation arising from sale transactions. These lawyers offer value-added guidance in purchase transactions for buyers, too. Oregon real estate lawyers review, analyze, negotiate, and amend real estate documents and agreements to make sure their clients' best interests are safeguarded under real property and real estate laws. They routinely aid clients in need to combat challenges or pitfalls that arise in residential real estate transactions or when repairs are needed if a problematic home inspection uncovers serious, costly defects. Call now to speak with a residential real estate lawyer based in Oregon at 877-913-7222.