When a Philadelphia home owner is unable to pay a loan, the lender will start the process of obtaining the right to sell the home at auction in order to fulfill the debt. The process differs from state to state, but will typically take an extended time to complete. This article offers Philadelphia foreclosure explanations for first time buyers.
Purchasing at Auction
A mortgagor traditionally holds an auction upon foreclosing on Philadelphia residences. Bidding on directly at an auction has many risks to a buyer. At this stage, bidders have no opportunity to enter the interior of a residence since it can be occupied (until the residents are evicted). A large cash deposit is required to bid at auction. Because of this, Philadelphia properties are not always sold at auction. The lender will alternatively take ownership, making it bank-owned real estate, a term that buyers may see often in real estate in MLS.
Purchasing After Foreclosure
If the foreclosure auction is unsuccessful, the eviction process is finalized and the home is marketed for regular sale. It is not usual for any work to be performed, so foreclosed real estate are always sold as-is. Furthermore, the mortgage company will have few details on the history of the property to offer to prospective buyers. It therefore is a somewhat risky decision for Philadelphia buyers. Foreclosed real estate almost always sell for a discounted amount for these reasons.
Philadelphia Foreclosure Explanations For First Time Buyers
Buyers looking for discounted listings tend to consider foreclosed homes, but it is important to understand the disadvantages of foreclosures. Purchasing at auction is not feasible for most Philadelphia first time buyers. Since the previous home owners could not make mortgage payments, they most likely could not perform general maintenance on the real estate either. Buyers should therefore anticipate required repairs. Certain Philadelphia real estate agents are experts in foreclosed homes and can be invaluable. This blog on Philadelphia foreclosure explanations for first time buyers was compiled by Diana Escobar-Wachter at Access Abstract Corporation. Contact Diana at 610-461-2910 or wachterd@accessabstract.com with questions or for additional information.
