Sheriff Sale in Philadelphia

[Andresa Guidelli]

Hey folks,

I would like to hear your inputs about the sheriff sale process in Philadelphia.

Any successful experiences?

Thanks,

Andresa

Key words: foreclosure, philly, philadelphia, cash buyer

[Cliff Lasky]

We have bought a few sheriff sale properties, and just bought one last month. 

The Good: The sheriff sale may be the only way to get a certain property. If a property is too far behind on taxes you can call the law firm that is handling the collections (find law firm at the bottom of these pages: http://www.phila.gov/revenue/realestatetax/default...) and ask them to bring the property to sheriff sale, if you give them a returnable $1,000 deposit they will contact you to settle the property before it goes to sheriff sale for the back taxes/liens/highest offer, or at minimum they will let you know when the auction will take place if you feel the price is too high. We have bought lots that were next to other lots we own and the sheriff sale was a last resort, and for that reason well-worthwhile. 

The Bad: If it is a Tax Sale Auction, you may not be able to get title insurance on the property for at least 1 year; this is due to the city reclaiming many tax delinquent properties without due process to the previous owner. This will cloud the title and you will not be able to sell your property for at least a year with a clean title. There are a lot of experienced sharks at the sheriff sales and prices have risen sharply in recent years, you can usually get better deals when you are NOT bidding against others.

I highly recommend going, sitting in the back a few times before bidding on anything. When you see a property you like, drive by it, walk by it, do your research, go to the auction with a bank certified deposit check and set an upper bid limit for yourself. Don't get caught up in the excitement and leave your emotions out of it.