Home Buying in Philadelphia>Question Details

Aida Rosa, Other/Just Looking in Philadelphia, PA

How to buy a foreclosure in Philadelphia area?

Asked by Aida Rosa, Philadelphia, PA Thu Jan 21, 2010

I know this homes are in not in the better shape and some are just crap, but I think could be a good investment because my husband is a handy man and will be less expensive to fix it. Is somebody there who are an expert in foreclosure homes please answer me. Thanks

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Aida,
Any REALTOR should be able to help you find and purchase a foreclosed home. If you need help contact me. I'll send you some information to help educate you and your husband, especially the do's and don'ts, prior to getting into the market. I look forwrad to hearing from you.

Warmest Regards,
Nate Anderson
0 votes Thank Flag Link Thu Jan 21, 2010
There are different type of foreclosures, some are for tax leins which take place in a bid with site unseen of the property. Another is a foreclosure from a mortgage lein usually held by a mortgage company or bank. They are also bid on sight unseen. However many times when a bank or mortgage company doesn't get what they want at the foreclosure, they take the property and put it in the hands of a realtor which goes on the market to sell. These you get to see before bidding. This is not a bid like an auction. If a buyer likes the house they have their realtor put in an offer and the bank usually gives a yes, no or a counter offer. Occasionally there are more than one offer, sometimes even higher than the asking price. In this case the bank either deals with the best one, or goes back to both and says "give me your best and highest offer" These properties are called REO's. Another potential bargain are what are called "short sales". That is when the amount owed is higher than what the property would sell for so the bank allows it to be sold for less than what is owed on the property. My best advice for you would be to get a realtor to help you from the beginning because in most cases you are going to use a realtor eventually anyway, so hire him or her in the beginning. Most realtors will not charge anything until you go to settlement and that fee most times comes from the Seller of the property
0 votes Thank Flag Link Thu Jan 21, 2010
Most foreclosures are typically listed with local real estate brokerages and advertised through traditional marketing media for a period of usually 60 days, after which the property will probably be auctioned. If you decide to submit an offer after previewing them, the process usually follows normal procedures, i.e. submitting an agreement of sale with supporting documentation. If your offer is accepted, corporate addenda will usually apply. The most thing to understand is, that although you may be granted an inspection period, the bank is offering the property AS-IS and will not be making repairs or providing repair credits. Closing and title will usually be handled by the bank, however, you can elect your own title company, at your expense.

The process may appear to be difficult, but a knowledgeable Realtor will be able to successfully transact this purchase. Good Hunting!
0 votes Thank Flag Link Thu Jan 21, 2010
Aida,

At Brown McKinney we specialize in helping investors find and buy investment properties - including foreclosures, REO's, short sales, etc. Please feel free to give me a call or email to discuss what you're looking for or check out my blog for more info at http://www.brownmckinney.com/james/blog .



James Yoakum - Realtor
Brown McKinney Real Estate
1631 W. Cabot St., Ste. 100
Philadelphia, PA 19121
office: 215-825-2250 x.1002
cell: 267-496-7739
fax: 610-910-3046
jyoakum@brownmckinney.com
0 votes Thank Flag Link Thu Jan 21, 2010
Your real estate agent has access to foreclosed homes just like any other house for sale. Once a home is foreclosed upon (meaning it has gone to Sheriffs sale) and the bank has bought it back and is now listed as an REO (real estate owned property), you can look at that home just like any other house for sale. Please remember though as you stated most are not in good condition at all and have no utilities on. If you need an agent to send you listings in an area call me at 610-931-5027
0 votes Thank Flag Link Thu Jan 21, 2010
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