General Question

woodlandanimals's avatar

How do you buy a house at a forclosure auction?

Asked by woodlandanimals (82points) April 30th, 2008

I found a great house, that needs lots of work that is being sold at a philadelphia sheriff’s auction. How do mortgages work for auctioned houses, and how should I bring the 10% deposit on the day of the auction?

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3 Answers

TheCouncil's avatar

bring the ten percent in secured funds (I.e. Cashiers checks) you can attempt to get a loan for the rest but it will be a challenge. shop the loan around and be up front with how you plan to purchase the property. Bring as much information as you can. Do not sign the papers until you have the sale in line as you could lose the property at time of sale although in today market you shouldn’t have a problem.

robhaya's avatar

I would also recommend checking with the Sheriff’s Office about what types of secured funds they are accepting to be on the safe side. Also have a title check done on the property to make sure its clean and their are no liens. Have you done your walk through of the property with a home inspector or structural engineer? Most auctions will have a viewing period. If the house was REO (Real Estate Owned), the bank could provide you the mortgage for their property, which would make it a lot easier to do. If not, talk to your local bank about getting a loan for the mortgage.

My advice to you is do your due diligence.

Good Luck!
R

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