How costly, complicated, and time consuming is forclosure in PA?

Question

I have a vacant land property that I have been trying to get rid of for 6 months and I need to sell now so I'm weighing my options.

I can either sell at a loss for cash or finance it to someone for a potential profit so I am wondering what costs would be involved in the event of a default on this property.  If they defaulted is it a certainty that I would get the property back or is it a maybe?

The property is flood zone and apparently has limited uses so that is why I would be worried about a default.

David Krulac · Answer

@Joe P.

Foreclosure in PA is Judicial, meaning you need to file a law suit and go to court.  Uncontested foreclosure can cost $5,000 or more.  Obviously contested would cost more.  Depending on the county, most around the Mechanicsburg area only have Sheriff Sales either 4 or 6 times a year, and there is a lead time to get on the list of months, due to the law, rules and regulations.  You be safe in figuring 6 months or more just to get to the Sheriff Sale.  If the property is low value there may be no interested party at the Sheriff Sale.  Most of the properties at Sheriff Sale go back to the lender with no other bidders.  Is this the property in Lewisberry with stream wetlands and guard rail around it? Contact me off line for more info.

@Theodore Xenos  Its difficult but not impossible to build in the Flood Zone.  You can't build in the Flood Way, but can build outside the Flood Way but still in the flood zone.  One way is to elevate the house on stilts like houses build at the ocean.  Flood maps are constantly changing and more area is within the Flood Zone due to new development and more rain water runoff.

Josh Caldwell · Answer

How about selling it with owner finance, but have your closing attorney keep the deed in escrow. They dont get the deed until you are all paid off, so there is no need to think about foreclosure.

Theodore Xenos · Answer

Anymore info on the property? I have property near a creek that tends to flood also in pa. I can let you know what I did (might help)

David Krulac · Answer

@Theodore Xenos I'm familiar with the property.  It was previously listed in the MLS and didn't sell.  It was offered to me and I looked at it and I declined.  It is almost all stream and wetlands.  Both of the roads are at higher elevations and act as a dam around the 2 sides of the property.

Theodore Xenos · Answer

@DavidKrulac  He mentions it is a flood zone. There is no mention that there is running water (correction it is a creek) or wildlife. I agree that draining areas that the army core of engineers has deemed wetlands is discouraged and comes with penalties unless permitted. He only indicates that it is in a flood zone. If it gets full on a rainy day he can still build a home with a pump in the basement. I'm only using the information i'm given.

Josh Caldwell · Answer

Land contract is one of the ways you can do this, you can also do it with a lease option, or agreement for deed. Get a real estate attorney in your area who deals with investors and ask them how they would like to do this. All you have to do is describe the goal and let them figure out the mechanism to accomplish that goal. Lawyers are a tool, they went to law school so they can do what you want to do legally.

David Krulac · Answer

@Theodore Xenos You can't drain wetlands without state and Federal permits, which are rarely given.  The US Army Corps of Engineers has jurisdiction over waterways (like streams) of the entire country.  Back before environmental protections people drained wetlands and swamps, that just doesn't happen now.  Today even for wetland disturbance, you are often required to create a NEW wetlands to make up for the wetlands disturb.  What you are suggesting is blatantly illegal and environmentally irresponsible.

Steve Babiak · Answer

If you do sell on seller finance terms of some sort, make sure that you are selling to a "business entity" so that you can insert a confession of judgment into the paperwork; this speeds up getting the judgment.

Theodore Xenos · Answer

See if the woodlands is for sale. (takes money to make money) Depending on elevation and coverage you might be able to cut the trees down and drain the surrounding area and build on the woodlands area. During the sale you put the parcels together and mark it as 4 acres.

Joe P. · Answer

@Josh Caldwell would that be considered a land contract?  Could any title company help me out with that or would I need to use an attorney?

How costly, complicated, and time consuming is forclosure in PA?

Most Popular Reply