Have you ever been interested in buying foreclosure homes in philadelphia pa? The process can be a little daunting to someone who has never done it before, but if you have the time, patience and money you might just find yourself a great deal.
Let’s break down exactly how a home gets to the foreclosure auction and what you can do to snap up great deals.
Foreclosure is the legal process by which the lender takes possession of a property when the owner can no longer pay their mortgage payments.
There are different steps in the process and it can be avoided if action is taken early enough, but that is beyond the scope of what we’re talking about here.
Homes go into foreclosure for a lot of reasons. Financial troubles brought on by illness, divorce, change in work situations and so on. Once the process of foreclosing on a house is completed, the bank is looking to recoup the money they have spent on foreclosing and the missed revenue from the borrower that is no longer coming in.
They do this by selling the property at auction. Many people wonder why banks don’t keep the property or why they are willing to help borrowers avoid foreclosure. Well, banks are in the business of lending money and charging interest. They aren’t in the property rental or sales business.
Here in Philadelphia bank foreclosures are handled by the Sheriff’s Office.
They handle both foreclosures from banks (called Judicial Mortgage Foreclosure Sales) as well as tax sales, which occur when the city confiscates a property because they are not able to pay taxes or other debt owed to the city.
The properties are auctioned off with different minimum starting bids. However, the lowest possible bid that can be offered is $600. Each new bid after that must be made in $100 increments. The highest bidder wins and must put down either 10% of the final price or $600, whichever is greater. The winner then has 30 days to pay the remainder of the amount.
If they don’t pay that amount in thrity days, then they lose their deposit and the second highest bidder will get their chance to purchase the property.
If you’re interested in buying one of these properties, then you need to attend one of the upcoming Sheriff’s Sales. But before you do that, you should attend one of the seminars that the Sheriff’s office offers to potential buyers.
You’ll learn about the process, rules and everything else you need to be an intelligent bidder. You can find more information about those seminars here.
Once you have learned the ins and outs of buying foreclosure homes in Philadelphia PA through the Sheriff’s Office, you can attend an auction and see if any properties look interesting.
You can find the upcoming dates here.
Whether you are looking to buy foreclosure homes in Philadelphia PA or are trying to keep your home from being foreclosed on, we can help!
Here at D&D Property Solutions, our friendly and knowledgeable staff have seen just about every possible real estate situation and can give you the advice you’re looking for. If you’re looking to move onto the next phase of your real estate life, no matter what that is, we can help.
Give us a call at (267) 888-8987 today or contact us here!