Great question. Since I work with many banks and often get listings from them, I am really very familiar with the process. I would say that in general no, the asking price usually isn't what the buyer ends up paying. However, it really does depend if the home was priced accurately when first listed by the bank. Banks are willing to work with a buyer but if they have a certain number that they want they will be stern with their price. I once had a buyer put in 4 offers and all were declined by the bank. But, when the home didn't sell, it actually sold for less than my buyer's 4 offers. My buyers did ask for money back from the banks for things that needed repair and the banks did give them to the buyers. I always ask for money back from the bank. Sometimes the banks do ask that the buyer pay for all of the transfer taxes or to get the home's Use & Occupancy from the city which states that the city doesn't have any issues with the home that need to be taken care of. Your Realtor should make sure there are no "hidden" fees on your settlement sheet.
I hope this helps and if you are looking for an investment property let me know and I would love to teach you everything you need to know.
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There are other situations where a property is auctioned and in that case, you must be VERY CAREFUL not to purchase a home with outstanding liens against the property. These properties do not necessarily guarantee clear title. You may need to accept the property and be responsible for the existing liens.
The very best thing to do is find an experienced agent in the area that you are searching and let them help you. It cost you nothing to get a Buyer's agent and this is what you want. A certified ABR is best, they are specifically trained in working for the buyer.
Feel free to give me a call Judi Wolfson, ABR, CRS, ePro500
It depends on the situation. I would recommend you have a strong buyers agent from the beginning. Basically I think what you are asking is where you find a deal ? Am I right ? Not all the best deals are foreclosures... there are HUD houses, pre-foreclosures, distress sales, estate sales, short sales, bank owned properties, real estate owned...etc. There are sheriff sales and many homes have already been foreclosed on.
A good buyers agent (like ourselves) can help you navigate through what is available and based on your goals, help you find what you are looking for. Keep in mind that many of these properties it is difficult to procure financing. Also, for HUD properties and some bank owned properties, buyer pays both side of the transfer tax (4 percent)... and properties are sold as-is of course.
Some of these properties can be found on the investor site below:
as well as http://www.thesomersteam.com .
We just listed over 40 lots in various sections of Philadelphia so if you are intersted in vacant land, let us know.
We can be reached at email@example.com .
Chris and Stephanie
I am not a pro on foreclosures,but I found some info it. Please read below.
Pennsylvania Foreclosure Laws
In the state of Pennsylvania, all foreclosures must be pursued through judicial proceedings. Before the lender can begin the process of foreclosure, the borrower (homeowner) has to have been in default on a payment for at least 60 days. Once these 60 days have passed, the lender can mail the homeowner a Letter of Intent, detailing the amount owed in default and the lender's intention to foreclose. If the lender does not receive the defaulted payment within 30 days after serving the homeowner with the Letter of Intent, the lender may pursue a court order to foreclose by filing a suit (known in this case as a Lis Pendens).
At this point, the homeowner is notified of the Lis Pendens by mail, and is granted an additional thirty days in which to respond to it by either contesting it in court or paying the amount due. If neither of these instances occur, the court may rule against the homeowner and order that their property be sold. The homeowner retains the right to halt the foreclosure at any point up until one hour before the scheduled sale by paying off the default amount and any additional fees incurred.
At least 30 days before the sale, the county Sheriff delivers a Notice of Sale and delivers a copy of the notice to the homeowner. The Notice of Sale must also be listed weekly in two local newspapers for three weeks before the sale occurs. The sale may be postponed only once, and for a period not to exceed 100 days. The court must approve any other postponements.
The Sheriff conducts the style, which works like a public auction. The property is awarded to the highest bidder and upon receiving payment, the Sheriff transfers ownership to the winning bidder. Under Pennsylvania foreclosure law, the original homeowner retains no right to redemption once the sale is complete.