There are currently 1,474 sheriff foreclosure auctions in Philadelphia if you are looking for cheap homes according to RealtyTrac data. Also available are four properties at online auctions that are available to bid on. There are 2,957 REO bank owned properties being offered as well. So there is quite a large selection of properties to select from.
Pennsylvania Foreclosure Process
Pennsylvania foreclosures are conducted by judicial foreclosure. They lender has to file a foreclosure action in court and adhere to statutory foreclosure laws or start the process all over. The average time is 120 days, but beaus the courts and lenders are so backed up with other foreclosures, it might take the lender a year or two to file the documents. The notice of sale must be published in a newspaper of general circulation notifying the public of the day, time and place of the sale. The current owner must be given at least 30 days notice prior to the sale. The sheriff conducts the sale at the courthouse. The court must confirm the sale.
Attending an Auction
If you have never attended a foreclosure auction, you may want to bring someone along that has because the bidding goes fast, and you don’t want to get caught up in a bidding war or make a mistake. Get there early to register. Bring your 10% deposit and cash in case your bid is selected. The property will be awarded to the highest bidder. Any properties that don’t sell at the foreclosure auction are bought back by the bank and resold later as REO real estate owned properties.
When you buy an auction property, you are stuck with any persons still living at the property. You have to pay the eviction costs. You cannot get title insurance on auction property.You are responsible for paying liens off so do your due diligence first. Properties are sold as is so conduct a home inspection.
All and all buying a property at a Philadelphia, PA foreclosure auction is a great investment if you are lucking to secure one. The properties are sold at a deep discounts. Many need repairs so be sure to add that into your budget. REO’s are also good deals, and you can get title insurance. They offer less risk because the property has already gone through the foreclosure process and the liens have been paid off. Whether you purchase a foreclosure property at an auction or from the bank, you are getting a property with built in equity.