Buying a Property in Pennsylvania Before the Sheriff's Sale

[Jason Krick]

Hey everyone.  Yesterday I got a lead which could be very profitable.  Time is of the essence.  First, I will give a little background, and then the question.  The full situation will be posted by me on another thread, as I have one other question on his deal.

The seller inherited a slew of rentals from her grandfather in Reading, PA and the surrounding Berks County area.  After he passed, it was discovered that the property manager basically stole most of the operating cash from him.  I suspect the manager's friends or family were living in the properties, because they all vacated immediately after he died.  That's the short version.

Now, here's my question. The seller has a final court hearing on August 11 to finalize a sheriff's sale, which is scheduled for September. She is telling me that the bank is telling her to do everything she can to sell it. I guess because they'd rather have it off the books than take it back. She told me the payoff amount, which I would verify. So, if we come to an agreement, would I need to close before the hearing on August 11, or would having a contract signed with a later closing date after the 11th be sufficient enough for them to postpone it and allow me to close? I have HML, insurance, and contractor lined up, but it is my first deal, so I think the HML might want to take more time doing DD before funding. They said they could typically find in 7-10 days, so we are really cutting it close. I'm hoping to have a bit of extra time to get everything lined up.

[Rick H.]

I'll defer to @Steve Babiak 's expertise in PA, however the sale event is generally the drop dead time/date event you want to beat. 

Postponement is another thing. There are a lot of moving parts here: 

1) borrower (who is either on title now or acting as estate PR) but not the borrower of record, 

2) lender, 

3) perhaps a servicer, 

4) attorney for lender handling this judicial foreclosure

5) court (presumably having issued a Writ some time ago

6) Sheriff or Levying officer.

I do not know the precise sale procedure in PA, however I would peddle fast to get under contract, show proof of funds (or equivalent) to attorney (may not cooperate) and be BE READY to close at least several days prior to sale. 

Someone will either be slow or drop the ball. Expect and prepare for that by reviewing your checklist daily. Go get 'em!