Sherriff's Sale Tips / Due Diligence?

Discussion in 'Philadelphia Real Estate' started by fiveomar, Oct 18, 2017.

  1. fiveomar

    fiveomar Well-Known Member

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    We're looking to buy a property next door which was just listed for mortgage (not tax) foreclosure Sherriff's sale. Our intent is to buy the property and fix/spruce it up. We're not developers, just have a vested interest since it's an eyesore property next door to us (and aren't keen on the exterior aesthetic decisions/cheaping out by most developers in Philly).

    I've read the following article and wondering what due diligence I should perform before or after bidding on a Sherriff's sale home:

    3 Things to Look Out For at The Philadelphia Sheriff Sale - brixsy | blog

    Any advice would be greatly appreciated!
     
  2. kat-21

    kat-21 Well-Known Member

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    I would check the Civil Dockets to determine how much is owed to the bank. I could be wrong, but my understanding is that the bank will bid up to the amount of their judgment, so the winning bid would be above the amount of the bank's judgment.

    You can also check L&I's website to see if there are any outstanding violations. I thought about bidding on a property near me until I saw the amount of violations which included an violation for "unsafe structure".

    Good luck.
     
  3. fiveomar

    fiveomar Well-Known Member

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    Thanks, this is really helpful. Is it always the case that the bank will bid up to the amount of the debt? The house will NEVER be worth anywhere close to the amount of mortgage debt on it. I would think the bank would want to recover some of its money rather than none of it.

    If that happens, does the bank then post the house on the MLS with a real estate agent as an REO property?
     
    #3 fiveomar, Oct 25, 2017
    Last edited: Oct 25, 2017

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