Foreclosure websites post the money that they are in default and even that could be wrong. They do not post the Liens or Judgements as well as the penalties that are owed.
There are a lot of great deals out please remember that there is no free lunch.
If your looking for a foreclosure it is best to get a expert in your area to assist you because there is a lot to know and you will not know it by looking at the site. If you want to see list prices stick to realtor.com or trulia and not a foreclosure site.
First Weber Group
Certitied Distressed Property Expert
As others have mentioned the information seen online is not always accurate, especially with foreclosure homes. I can only think of one area in lower Bucks County where you can buy a home for $20k. There are other local areas where you can buy for $20k: Philly, Camden or Chester.
Terrence makes a great / accurate point about many of the web "foreclosure listings". I can't tell you how many times we see these $20,000 properties already under contract in the MLS for $247,000 (for example).
Many times you'll see an amount listed that could actually be taxes owed (for example), the amount the mortgage is in arrears, "back" association dues in some areas (homeowners associations can initiate foreclosure proceedings in some areas), or some other "un-described amount. I've attended many foreclosure / Sherrif sales over the last 15 or so years. Sadly, every few years (especially in an economy that we're in now), you see some companies pop up who make money by simply selling foreclosure lists, etc. (which you can get for free by the way at any local courthouse / sheriffs office).
Some of these companies are legit and some are not. Also keep in mind that in a foreclosure / sheriff sale auction, the "the high bidder" can be liable for liens on the property (especially the 1st mortgage who is the 1st lienholder) so a $45,000 home for example with a 1st mortgage lien of $100,000 can cost you $145,000 + auction fees etc for example. (That's a very , very simplified , but for the sake of not typing 14 paragraphs, it can give you an idea of what can be involved). Short Sales, (while they have their own issues), do not put you at that type of risk like a foreclosure.
Also keep in mind that your mortgage lender must "approve you" as some will not lend on a foreclosure / short sale.
Hope that helps a bit. If I can be of any help, I'm always here. I've done quite a bit of work in Bensalem (grew up in the area).
Brian Luce ABR, SRS
I am not aware of any homes being sold for $1,000 OR $20,000 in Trevose. You may buy at that price in certain parts of Philadlephia. A client of mine bought for $1500 but ended up stuck wiht $10,000 in back taxes because he bought privately and did not know what he was doing. He came to me for financing after the fact. It costs nothing to talk to a professional and can save you lots of $$$ in the long run
The foreclosure process is quite lengthy and starts when the borrower defaults on the loan. The following steps are included but are probably not all of the steps in the process after the borrower defaults.
- The lender petitions the court to sell the property.
- Borrower notified, has chance to catch up on payments, fees, remaining balance of loan.
- Borrower can't pay, home is slated for sheriff sale.
- Borrower can petition the court to stay the sale.
- If the sale goes on, potential buyers bid for property.
- If the property is sold at sale, sheriff evicts squatters (prior borrowers).
- If the property is not sold, the bank â€œbuysâ€ the property back.
- Bank puts the property on the market through a broker.
- For lenders who have VA or FHA backed home loans, they give the property to those agencies recovering the funds and those agencies either list with a broker or post those properties on their own web sites.
Now, even before this happens, the borrower sometimes lists the property (with the lender's approval) as a short sale (the price of the home is less than what is owed).
Moral: Get a real estate agent to help you out. They can show you properties which are either in foreclosure or will be a short sale. They can also assist you with properties which are slated for sheriff sale to see if they would be profitable.
Hope that helps,
Century 21 Associates
Cell (Preferred): 877.614.1494
Alyse Sands, Broker
Village Real Estate Services,