While monitoring foreclosures in my area here in Pennsylvania, there was one property I kept an eye on. ARV is around 90-100K. It was a Freddie Mac property listed on Homesteps. I watched it be reduced multiple times until it was at 45K. Shortly thereafter, the price dive-bombed to $9,900, and the listing was removed the next day. I assumed it went under contract. By his was in March. I can't find a recorded deed yet on the County's website. Today, I looked at the Judicial (Free and Clear) tax sale listing, and the property is listed.
So, what is most likely going on here? Did Freddie Mac decide it wasn't worth it to keep paying property taxes on it, so they are washing their hands of it? Did someone purchase it from Freddie, and there were still these back taxes attached to the property, thereby the new owner is at risk of losing it?
Rehab appeared to be pretty minor, but how this played out throws up a red flag. Maybe they noticed significant structural issues (or something else major), so they did a fire sale at $9,900. Any thoughts would be appreciated.
what ended up happening with this property?
It did end up selling at the tax sale. 3 parcels. One investor bought 2 and another bought the remaining one.
I still don't know why it happened like that. Seems strange.
Interesting. We just bought 4 townhomes at an auction and I want to learn more about buying REOs listed by HUD.
@Karol Hernandez , HUD properties will be listed on the MLS and you need a realtor to place the bid.
Percy N., Penn Capital | http://penncapitalgroup.com
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