Lord of the REOs
By Joel Burslem, Friday, February 6, 2009.In another casualty of the housing bust, The Shire, a Lord of the Rings-themed development in Bend, Oregon, has fallen into bank hands, according to the The Bend Bulletin.
The 6-acre property, which only has one-partially completed home and 14 vacant lots, is now on sale for $1.3 million. A public auction in December resulted in no bids which forced lender Umpqua Bank to foreclose in mid-January.
Umpqua had originally loaned developers $3.4 million in 2004 to build out their fantasy "village".
The Shire was conceived as a place where Lord of the Rings enthusiasts could congregate and, as such, the codes, covenants and restrictions of the project reflected this goal.
The CC&Rs promoted the use of English architecture, including unique stonework, artificial thatched roofs, terraced gardens and a network of streams and ponds with a pathway leading to what was called The Ring Bearer’s Court.
In all likelihood however, this vision will never be realized, according to the listing agent.
“The bank is trying to sell it to a single developer,” he said. “The CC&Rs could, in most probability, change.”
Say it ain't so, Bilbo!
(h/t re: PDX)
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Submitted by Erica Ferencik on February 6, 2009 - 5:03pm.
This is hilarious. I'd love to eyeball those covenants. I mean, what could be IN there? No pets bigger than Gollum...
Submitted by Antonio Ciccarone on February 8, 2009 - 7:42am.
I don't know if it's a bad idea, maybe the location, planning and timing is, but I know plenty of people obsessed with these books and movies.
Even their website is down. http://www.bendshire.com/
Submitted by Jonathan Phan on March 6, 2009 - 9:37am.
REO's are everywhere!
Jonathan Phan
http://www.jonathansellshomes.com/
Submitted by Jeff Stegich on March 24, 2009 - 8:35am.
Aww, that's so sad. Hope someone comes to the rescue!
Jeff Stegich, Realtor(R)
Richardson Real Estate
Submitted by Ron Redlich on April 14, 2009 - 6:46am.
A Mordor project might do better in these times.
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Submitted by Alex Grex on April 29, 2009 - 5:28pm.
Its not looking to good in our area. But think about all the reo buyers if you're a nicher.
Alex Greben
Portland Real Estate Agent.
http://www.nwmove.com/
Submitted by Susan Stoegbauer on May 19, 2009 - 8:35am.
I agree with Erica, this is hilarious. They could make a few bucks back if they published those CC & R's as a Guide to living in the Shire. When I was in High School and thought The Lord of the Rings were the most awesome stories ever written I bought every companion book there was. I can't believe I just admitted that. LOL! Brought to you by Brewer Caldwell
Submitted by Patty Redlich on June 29, 2009 - 8:42am.
Frodo will have to find another place.
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Submitted by ping pang on January 22, 2010 - 5:19am.
So you’d like to buy a bank owned property?
You’ve watched the late-night infomercials and you’re ready to do the bank “a favor” and take a problem off their hands. Plus, you expect to make "a killing" in the process. Sounds great and it might just happen, but first you should take a look at some facts and get prepared.
REO vs. Foreclosure
An REO (Real Estate Owned) is a property that goes back to the mortgage company after an unsuccessful foreclosure auction. You see, most foreclosure auctions do not even result in bids. After all, if there was enough equity in the property to satisfy the loan, the owner would have probably sold the property and paid off the bank. That is why the property ends up at a foreclosure or trustee sale.
Foreclosure sales begin with a minimum bid that includes the loan balance, any accrued interest, plus attorney's fees and any costs association with the foreclosure process. In order to bid at a foreclosure auction, you must have a cashier's check in your hand for the full amount of your bid. If you are the successful bidder, you receive the property in "as is" condition, which may include someone still living in the property. There may also be other liens against the property. 70-238 117-101 642-974 E20-340
Since what is owed to the bank is almost always more than what the property is worth, very few foreclosure auctions result in a successful sale. Then the property "reverts" to the bank. It becomes an REO, or "real estate owned" property.
REO Properties For Sale
The bank now owns the property and the mortgage loan no longer exists. The bank will handle the eviction, if necessary, and may do some repairs. They will negotiate with the IRS for removal of tax liens and pay off any homeowner’s association dues. As a purchaser of an REO property, the buyer will receive a title insurance policy and the opportunity to investigate the property.
A bank owned property might not be a great bargain. Do your homework before making an offer. Make sure that the price you pay (if you’re successful) is comparable to other homes in the neighborhood. Consider the costs of renovation, including time to complete them. Don’t get caught up in a ‘bidding war’ and pay over market value. It’s an old myth that “foreclosures” are a bargain.