I am newly looking into sheriff sales, specifically on the mortgage foreclosure side. Off the bat, I had a few questions that hopefully someone more experienced can help:
1. do auctions allow financing after winning the bid, or do they require entire amount to be immediately wired?
2. When it comes to these types of auctions by the sheriff, is there a waiting period that must be observed before rehabbing/renting the building post winning the bid? If so, how long?
3. I have been advised to do a title report on any properties I want to bid on, but am I able to do a title commitment?
4. Dumb question - but are these auctions online only, or in-person? And do they accept counter-bids after initial bid is placed?
I bought a vacant property on Sherriff sale last year on the ********** site.
1. You have to be able to have the full amount in cash within a few weeks of the auction. No financing available.
2. You need to wait until you receive the deed before rehabbing the property. It took about 8 months for the deed to be transferred to my name from the time of sale.
3. Not sure.
4. The auction is online only. The auction is open until the listed end-time. At that point, the clock will restart by 5 minutes after every counter bid, until the bidding stops.
With mortgage foreclosures you'll want to guarantee that the property is vacant to avoid going through a messy eviction battle.
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
1y
@J Lee Have you successfully invested in real estate? If not, I do not recommend sheriff sales as a first attempt. There's a lot of suckers who attend these sales, particularly for the lower priced properties and that's precisely who you don't want to be bidding against. Consequently, there's rarely enough of a deviation in price between these auctions and what you can buy on the MLS/elsewhere with full diligence capabilities to make these transactions worthwhile.
I have a small portfolio of several multifamilies and have done a few flips before that. I do have a very specific and curated buy box, so I know what i'm looking for in terms of zoning, lot size, buildable/improvable sqft, location, etc.
With that being said, do you still not recommend going through sheriff sales?
I bought a vacant property on Sherriff sale last year on the ********** site.
1. You have to be able to have the full amount in cash within a few weeks of the auction. No financing available.
2. You need to wait until you receive the deed before rehabbing the property. It took about 8 months for the deed to be transferred to my name from the time of sale.
3. Not sure.
4. The auction is online only. The auction is open until the listed end-time. At that point, the clock will restart by 5 minutes after every counter bid, until the bidding stops.
With mortgage foreclosures you'll want to guarantee that the property is vacant to avoid going through a messy eviction battle.
Rental Property Investor · Green Bay · Member since 2020 · 30 posts · 15 votes
1y
Sheriff Sales are conducted by counties, so each county will have its own individual rule set for how the auction is conducted. But all interpret their own states foreclosure laws. Philadelphia County uses ********** to sell their foreclosures. A deposit on that site is required to bid. You'll need to have 10% thru the sale account by 5pm the day of the win, and will have to pay the remainder within 15 days of the win. Good luck, Its a dangerous game. You are walking into a potential situation that can break your heart, break your bank account, or break your will to ever try this again...Maybe if your lucky, all 3 https://phillysheriff.com/property-listing/
I bought a vacant property on Sherriff sale last year on the ********** site.
1. You have to be able to have the full amount in cash within a few weeks of the auction. No financing available.
2. You need to wait until you receive the deed before rehabbing the property. It took about 8 months for the deed to be transferred to my name from the time of sale.
3. Not sure.
4. The auction is online only. The auction is open until the listed end-time. At that point, the clock will restart by 5 minutes after every counter bid, until the bidding stops.
With mortgage foreclosures you'll want to guarantee that the property is vacant to avoid going through a messy eviction battle.
Thank you for the information! I think at this point, i dont think sheriff sales is a viable part of my strategy.
Sheriff Sales are conducted by counties, so each county will have its own individual rule set for how the auction is conducted. But all interpret their own states foreclosure laws. Philadelphia County uses ********** to sell their foreclosures. A deposit on that site is required to bid. You'll need to have 10% thru the sale account by 5pm the day of the win, and will have to pay the remainder within 15 days of the win. Good luck, Its a dangerous game. You are walking into a potential situation that can break your heart, break your bank account, or break your will to ever try this again...Maybe if your lucky, all 3 https://phillysheriff.com/property-listing/