How To Buy A Foreclosure - Central PA Tips
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How to buy a foreclosure in Central PA
Foreclosure home sales in Central PA account for approximately 15% of all residential real estate sales as a best guess. Buying a foreclosure may not be for you if you are concerned about higher risk, needing more down payment funds, moving quickly to place an offer and being comfortable doing repairs. On the other hand, if these things get your blood pumping then shopping for a foreclosure may be the thing for you.
As a result of the foreclosure process inPennsylvania, homes become available for sale by several major ways. Here we will focus on the top three ways, itemized by our assessment of the difficulty level:
Beginner - HUD Home Foreclosures
Properties that have been acquired by HUD (aUSgovernment department) and offered for resale on their website. “Owner occupants” get a priority period to place bids, the property condition is disclosed and clear title ownership is offered.
Intermediate – REO Bank Foreclosures
Properties that have been acquired by private banks for resale following their foreclosure. Offered through a local real estate broker. Condition varies widely and no assistance is given the buyer. Bids must be submitted relatively quickly and investors compete with owner occupants. Clear title ownership is offered.
Advanced – Sheriff Sale Foreclosures
As properties are repossessed by the lending banks, the ownership typically passes through the local sheriff inPennsylvaniacounties. Properties are offered for “public sale” where both the repossessing bank and the public may bid – however the public also pays the mortgage balance. Condition varies widely and physical inspections are more difficult. Auction bids require high down payments and clear title is NOT offered – true “buyer beware” scenario.
No matter which type of foreclosure you choose, your best chance for a successful outcome will be with a Coldwell Banker agent who understands foreclosures and can walk you through the process.