Foreclosure/ Sheriff Sales
What is a Sheriff's sale?
Whether you're a first-time homebuyer or experienced investor, a Sheriff's sale is a great way to save - or make - money in today's sizzling real estate market. If you are looking to capitalize on foreclosure properties being sold at these public auctions, Swift Realty has a tremendous resource that will get you on the path to success.
Buying foreclosures at the Sheriff's Sale (or auction as it's commonly known) is one of the best ways to make big profits in the distressed foreclosed property business, since these sales allow to buy property at well below market value.
The way in which homes come up for sale by way of a Sheriff's sale is due to foreclosure. Foreclosure occurs when the homeowner can no longer make payments on the house and the house gets repossessed by the lender. Once foreclosure has occurred, the house will be put up for public auction, i.e. Sheriff's sale, and be supervised by the local county court. The individual or entity who posts the highest bid on the house becomes the new owner. At Sheriff's Sale most lenders have a representative go in and bid on the homes to make sure that the homes do not sell for too cheap. It is important to note that the new owner is quite often the prior lender.
The exciting thing about Sheriff's sales as well is that every property must be sold. Since all the properties have defaulted mortgages, all must be sold for the lenders to receive their money.
Before jumping into the purchase of a home via Sheriff's sale, it is important to look at the pros and cons that go along with buying a house in this manner.
Advantages of Buying Foreclosures at the Sheriff's Sale
The biggest advantage to buying properties at the Sheriff's sale is the high profit potential. If there is a large difference between the market value of a foreclosed property and its final judgment amount at auction, you can really win big.
Disadvantages of Buying Foreclosures at the Sheriff's Sale
One disadvantage is having to obtain the cash in order to bid on the home. Frequently the only way in which an individual can pay for the house is via cashier's check or cash. This may make it difficult for some individuals to buy the house as they cannot finance it.
Depending on the reason for the foreclosure sale, there may be a redemption period in which the previous owners can make payment in full and get their property back. Check with the trustee to protect your rights.
If you are interested in buying at a Sheriff's sale, do keep in mind that you will need to do your research carefully before the sale starts. Some homes will be a bargain but some may need extensive repairs. Are homes are sold "as is" so if you find a problem after you buy, you are entirely responsible for the problem.
Swift Realty.com has largest and most accurate searchable database of foreclosed homes.
Even if you are unfamiliar with the process of buying a property at Sheriff's sale, our agents at Swift Realty will walk you through it step-by-step.
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