There is a new trend that is making waves here in our local Real Estate marketplace and affecting some of the homes for sale in York PA and the rest of central PA.
Some lenders are selling foreclosed properties after the Sheriff Sale, but before the occupant moves out. Again, they are selling homes that are occupied. Technically, the lenders do own the properties at this point and they do have the right to sell them, but they haven’t evicted the occupant. They don’t truly have possession of the properties. So, buyers are unable to see the inside of the properties and buyers are responsible for the eviction of the occupant after they buy the property, sight-unseen. Most lenders are using online auctions to sell these homes.
What if the person living in the house is mad? What if they destroy the house before they leave? It wouldn’t be there first time we see that. But usually, by the time the buyer looks at these foreclosed properties, the damage is done and the buyer knows exactly what they are getting. In this new scenario, the buyer takes more risk. They are responsible for the eviction and they are also at the mercy of a possibly disgruntle occupant who may or may not do damage to the property while being evicted.
I honestly didn’t think it was going to catch-on. Why would anyone buy a house through an online Auction with people still living it in? Especially if the people occupying these homes could well be the previous owners that were just foreclosed on, lost their home, might be very disgruntled. But to my surprise, we’ve now sold a few homes this way and the trend is gaining traction.
Again I thought this would be tough to pull for the lenders that started this, but I stand corrected. I am here to tell you that the marketplace has adjusted to the trend. The buyers understand they are taking on more risk & pay less for the properties, generally getting a fairly good deal. The lenders are able to sell their properties faster, before the eviction, and to them… time is money. A lot of money. So it’s turned into a win-win situation.
Most of these auctions run parallel to a normal Real Estate listing. So, there is an agent listing the home, while it is being offered at the online auctions. Please be sure you call an agent. Keep in mind the lenders are paying for the agent commissions anyways. So going at it alone is somewhat silly, since the agent won’t charge you anything to help you with the process & can guide you through it all.
If you want more information, please feel free to contact us today. We are always here to help.