Prospective home owners wanting to buy their first home have some help. The housing bill signed into law on the 30th of July, 2008, has made a provision for them to receive an interest free loan of $7,500 as tax credits to be paid back in 15 years.
Buying a house that is part of the Portland Foreclosures would be cheaper than buying a Portland home that is not.
Defaults in mortgage payments in central Oregon and Portland areas rose by 97% in the 1st half of 2008, as compared with 2007. This has put an increasing number of homes in the Portland Foreclosures up for sale.
Lists of foreclosures for sale can be obtained from local real estate agents, or banks can be contacted. The internet and newsletters are also good sources to find foreclosures for sale.
When a property reaches a bank after being through the foreclosure process, any pending taxes on the property are taken care of by the bank. Also, second liens that might have previously existed on the property are taken care of. With banks never too keen on keeping a home with them, as maintaining them involves a fair amount of money being spent, buying a bank owned property is a good option for first time home owners. One should keep in mind that the initial offer made by the bank is always subject to a counter offer.
A property can also be bought during the pre-foreclosure stage (short sale). Home owners end up selling their homes to avoid foreclosure. The lender on the house also tends to encourage this, because no bank really wants to foreclose on a property as it involves a good amount of time and money. There have been occasions when, in accordance with the lender, the home in question has sold for less than what the previous home owner owed on the property. Existing second loans and pending taxes on the property should be checked upon. There have been instances across the country where houses have sold for close to half of their market value.
Auctions are not for the faint hearted first time home buyers.
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