All Forum Posts by: Greg Wilkins

@Steve Babiak   Thank you.     True.  For now the largest firms: Phelan, KML, and McCabe will still release them.

Kristen T. Here are a few terms that I think would be helpful to you as you learn the process of successfully buying a property at sheriff’s sale: Opening bid - where the sheriff will start the bidding. Some counties start at sheriff’s costs (a few even use a nominal number like $1) and others start at costs plus outstanding taxes. This amount is virtually insignificant because the number that matters is the upset price. Upset price: the foreclosing creditor will be bidding against you to acquire the property. They set a maximum bid on the property and it is often referred to as the upset price. Once the bank hits this number they will stop bidding thus allowing a 3rd party bidder win the bid. Most foreclosure firms will tell you this number the day or so before the sale. This number is not always the amount total amount due to the bank. Conditions/terms of sale: each county has these and they are set by the sheriff. They can vary and you should be familiar with them. If I am not mistaking, Allegheny county requires you to pay 10% of your winning bid immediately and the remaining 90% by noon on the Friday following the sale. The funds have to be certified. No personal or business checks. If you don’t pay your remaining 90% you are supposed to forfeit your deposit. Lien priority: liens on property have a priority. Generally priority is established in chronological order. The older the lien, the higher up on the priority chain. The big exceptions are county/local/school taxes and municipal claims like water and sewer. Divest / divestiture: the beauty of a mortgage foreclosure sale is that if completed properly it will divest or wipe out all the liens on the property. Generally liens are divested by a mortgage foreclosure sale if they get paid by the proceeds of the sale or were junior to the foreclosing lien and received proper notice of the sheriff’s sale. There are many quirky scenarios that can happen when it comes to lien priority and divestiture, but the quirky scenarios do not come up often (if they did they wouldn’t be thought of as quirky). Sheriff’s distribution: when the sheriff’s office receives money from a buyer they must prepare a schedule of distribution showing how they are going to distribute the funds. Generally the order goes something like this: sheriff’s costs (usually including their commission/poundage-2% of the winning bid and transfer taxes), taxes and municipal claims, foreclosing creditor, junior lien holders in order of priority. For what it’s worth, I would attend a sale before you go to bid at one so you can see how they work and get answers to any questions that might arise. Feel free to send me a message or ask additionally questions on this forum. @Steve Babiak Just a little tidbit: the sheriff is still entitled to commission/poundage when a sale is cancelled. They are entitled to 2% of the amount received in consideration for the stay. I don’t disagree with your sentiment, but wanted to clear that up. To my knowledge Philadelphia is the only county that doesn’t collect it on cancelled sales.

I grew up in port Richmond row homes. Usually the stairs to the 2nd floor are directly above the stairs to the basement. Therefore, if you wanted to put a 1/2 bath under the stairs you would also have to relocate the stairs to the basement. I have seen 1/2 baths put in at the back of the house, off the kitchen and in the dinning room by the window as a previous poster commented. Good luck.

@Erica Naveja Are you talking about buying properties at sheriff's sale or buying the properties from the Banks after they take title (REO properties)?

If you are talking about REO properties, they are typically listed by an agent and you can have your real estate agent write up an offer as low as you want.

As for mortgage foreclosure sheriff's sales:  They are public auctions.  The bidding starts at a nominal amount (some counties start at $1.00, others at sheriff's costs, and others at sheriff's costs and delinquent taxes).  The opening bid is generally unimportant.  The important number is what the banks and their attorneys call the UPSET PRICE.  That is how high they will bid at the sale.    This number is often less than the total debt owed to the bank.  Most attorneys will provide the upset price the day before the sale if you call them and ask for it.

hope this helps.

Can anyone recommend a tile installer in the Cherry Hill New Jersey area? Thank you in advance for any input that you may have.

Julian Dozortcev I haven't been involved with sheriff's sales in NJ for about 5 years, but back then they were public auctions held at the county courthouse. You had to be present to bid. Therefore, if you bid $5k and someone else (probably the foreclosing creditor) bid $6k, you would simply shout out your next bid. I feel like I might be misunderstanding your question, if so, my apologies. Good luck.

Odie Ayaga John is a great guy. I have not used him in the capacity that he has been recommended to you. He is general counsel for the firm for which I work. When our firm needs legal advice my boss calls John. Good luck with everything!

Good afternoon all: I have worked for Mortgage foreclosure attorneys for the past 17 years. While I have never purchased a property at sheriff's sale, I have a firm understanding of how these sales work from a legal perspective and how the lenders come up with their bids etc. there is a ton of great information in this thread (IMO). However, there are some errors and misconceptions. If anyone has any specific questions, please send me a message. I would be happy to answer or get you going in the right direction. Happy investing.

William Lees Thanks for the post. What criteria did you use to determine whether a town fit into the rental or fix/flip category? I tend to think that higher real estate tax means better for flipping. Thoughts?

John Leake Welcome. The podcasts are awesome. They cover so many topics. I started at #1 and listened to everyone. Now I hate having to wait a week until the next one comes out. Good luck.