Can I obtain a Mortgage for a Sheriff Sale?

Asked by Bruce, Palmyra, PA Sun Feb 17, 2013

I have never purchased a Sheriff Sale home and was told that 20% must be paid at the time the aucion ends (with a certif. check from the bank). And then the rest must be paid within less than a month from that date. Are those the rules in PA? But as for that 80% to be paid.....is that something that a bank would loan money for (ie: Mortgage), or must it be a full cash purchase with any Sheriff Sale in PA? Can anyone help please? Thank you!

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Judy Mehaffey’s answer
Judy Mehaffey, Agent, Lebanon, PA
Sun Feb 17, 2013
A couple things to think about.
If you are very serious about this property make sure you have someone with you to go thru the home
that is qualified to see you if that property has issues you are missing. Termites or structural etc.
Ask your insurance company to check and see if there were any claims paid out on it and what it was for.
Talk to your bank and get your ducks in a row. They are the lenders. They can tell you what you need and also call the sheriffs dept that is holding the sale and present them with the question of the bank financing it. And if they accept whatever from the bank.
They don't care where the money comes from as long as you follow procedure.
Sheriffs sales.....sold in as is condition ! Buyer beware.
I hope this helps....
1 vote
So you are saying there are times that a bank WILL give a mortgage for a Sheriff Sale? it is possible if the information on the property and peronal finances 'check out' ?
Flag Sun Feb 17, 2013
Kim Lutes, Other Pro, Harrisburg, PA
Tue Feb 19, 2013
My experience has been that most homes sold at Sheriff's sale do not qualify for a traditional bank loan due to the condition it is in. Try to find out what repairs the property needs and check with your bank and homeowner's insurance company to see if they will accept it.

Kim Lutes
Real Estate Solutions of Harrisburg
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