Foreclosure in Bangor>Question Details

Anon, Home Buyer in Bangor, PA

what happens if a foreclosed house doesn't sell at a public or sheriff's auction?

Asked by Anon, Bangor, PA Thu Apr 14, 2011

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If a home does not sell, the home still belongs to the owner. There are other reasons why a home is at a Sheriff's sale, overdue taxes is one. Buying the home at a PA Sheriff's sale does not wipe out all debts against the property. A full title search is needed and check with a lawyer on a property by property basis. The bank does not get the home in PA with out buying it at the sale. The bank must also buy it at the sale before it is put on track to come back as a Bank owned property. A very common reason a home is not sold at the sale is the owner paid what ever bill was due that put it on the auction block.
1 vote Thank Flag Link Fri Apr 15, 2011
Is the owner liable for any balance that the sale doesn't recoup,or does the bank just take the loss?
0 votes Thank Flag Link Fri Oct 21, 2011
thanks for the good info all.....the sherriff's auction in question was postponed and the house sold quickly to someone for 8K more than what was the minimum bid listed......
0 votes Thank Flag Link Sun May 29, 2011
Discussion is how we all learn. A real estate lawyer would be great right now. But until that happens I will try to clear up this question. First there is no title transfer until after the sherrifs sale. The owner can pay off what ever debt is owed up to the sale which is the right of certain debt holders against real property such as a mortgage or tax. Other debts can only be attached to the property as a lean but not force the sale. The common phrase a lender took back the home is not correct
0 votes Thank Flag Link Fri Apr 15, 2011
Discussion is how we all learn. A real estate lawyer would be great right now. But until that happens I will try to continue this discussion. First there is no title transfer until after the sheriff’s sale. Only the right to force the sale to recover loses. The owner can pay off what ever debt is owed up to the sale which is the right of certain debt holders against real property such as a mortgage or tax. Other debts can only be attached to the property as a lean but not force the sale. A lender cannot take back the home because the lender never takes title before the sale. The lender receives a mortgage here in PA not a deed. In the case of a lender who has completed foreclosure procedures resulting in a Sheriffs sale. If no one out bids the lender then the title is transferred to the lender. This is on Residential only. There is no right of the owner to pay off the debt up to the Sheriffs sale when the property is commercial in nature. But in residential property the borrower retains the right to pay the debt and keep the property until the day of the Sheriffs sale. That is the way I understand this process.
0 votes Thank Flag Link Fri Apr 15, 2011
Benny,

I am certainly not trying to discredit you,and am responding moreso to provoke discussion. I do not have the complete answer here. I'd rather keep this public than private as it is clear that you can speak intelligently so let's keep the discussion going. As I said, i do not have the answer.
That being said, I can only sell a house if I have complete ownership. The sheriff sale is initiated by someone who has proved in the courts that they have a right to take back the house and they have done so. How then can it revert to the original owner if nobody buys it at sheriff sale. What legal instrument conveyed the property back to the original owner?

Alan
0 votes Thank Flag Link Fri Apr 15, 2011
Interesting variation . . . I'll have to make a note of this.
0 votes Thank Flag Link Fri Apr 15, 2011
Anon: The home is eventually listed with an agent that the bank picks to list and sell the property. Then is is a Bank Owned Home listing.
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0 votes Thank Flag Link Thu Apr 14, 2011
Hello Anon,
Robyn is correct below. There may be times when the sale is postpone the same day and will sell at a later date and time. Auction homes can change status few hours before the sale actually happens, so if there is a home you are interested in then make sure you call the trustee services the same day and every hour.
0 votes Thank Flag Link Thu Apr 14, 2011
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