Buying real estate can often be a very lucrative enterprise, especially when you can find a great deal. One of the most favorable real estate situations you can take advantage of is the opportunity to buy a foreclosed home. Read on to learn more about Pennsylvania foreclosure law and how to buy foreclosed homes in PA.
How Does Buying a Foreclosure Work in PA?
According to Pennsylvania foreclosure law, there must be a public announcement of a foreclosure auction sale with the time, date and place provided. You can find this information in local newspapers, on the property or in other public county locations.
Once you find a desirable opportunity, contact the lender’s attorney, the trustee or the sheriff to find out what is acceptable at auction to secure the property. Usually, a deposit for earnest money will suffice, and you can use a money order or cashier’s check to pay for it. Then schedule a time to take a look at the property so you know what you’re getting into.
On the day of the auction, show up at the scheduled time and location and be prepared to show the lender’s representative your identification and earnest money deposit. Then the bidding begins. The lender’s representative will set the opening bid and the increments in which you can raise the bed. Keep bidding against your competition until you have won the property or the current bid meets or exceeds your top bid.
If you win the bid, sign the purchase agreement and submit your deposit. You must then close the deal within the allotted time, typically 30 days.
What Is the Biggest Tip for How to Buy a Foreclosed Home in PA?
The biggest tip is not to wait until after the auction when the property becomes Real Estate Owned (REO). There is a period of usually at least four months between the notice of default to the property owner and the foreclosure auction sale that’s open to the public. This is the perfect time to jump in and get a great deal.
If you can buy the property during the preforeclosure period and skip the auction, you can beat the competition and get a much better price.
How Do I Buy a Pre-foreclosed Home in PA?
Locate a home where the owner is in default and contact them directly. Explain your goal and how it can benefit both parties. If they seem amenable, contact your CENTURY 21 Core Partners agent and let them know you are interested in the property.
Once you have the preliminaries in place, conduct the standard inspections. If they go well, your agent can help you make an offer. Often these sales can move more quickly because everyone understands the preforeclosure period is limited.