Some commonly asked questions and answers:
Q. Is the
foreclosure sale itself held at the courthouse or on the property?
A. At the
Courthouse
Q. Who
actually holds the sale?
A. The
Sheriff
Q. From
the time of the sale, how long does a 3rd party have to come up with the funds?
A. 10% to
15% deposit at the sale and the balance within 30 days (this varies by county).
Q. Do the
funds have to be certified?
A. Yes
Q. Are
the funds forwarded to the attorney, or to the County?
A. To the
Sheriff
Q. Is
there any kind of waiting period? Like a Confirmation Period?
A. The
Sheriff must wait for a Title Distribution Policy from a Title Company and then must allow
must allow interested parties to file objections. There
are no Redemption rights in Pennsylvania.
Q. Usually,
how long does it take from the time of the Sale, until we actually have the funds in
house?
A. 90 to
120 days after the sale, as the Sheriff has to obtain a distribution policy from a Title
Company, pay all Taxes and allow for objections to distribution.
Q. Who
generally shows up to the Third Party Sales in your state?
A. A mix
of experienced foreclosure purchasers and many first time attendees.
Q. What
is their main source for obtaining information about the Sale?
A. Published
Notice of the Sale, Sheriff websites, neighbors.
Q. What
avenue do you use to provide information about the upcoming sales?
A. The
Sheriff is responsible for publication in the legal newspaper and general circulation
paper and posting the property, our name is included and we field numerous calls and
generally provide bid information, if available
Q. Do
individuals contact you office for information and what kind of information do you provide
to them?
A. Yes,
Generally basic information about the debt. We
encourage them to contact us closer to the Sale date to obtain the maximum bid amount that
we have been authorized to bid. We do not
release Title Search information due to liability concerns.
Q. Are
there any avenues that you would suggest we take to help us increase the number of Third
Party Sales in your state?
A. Provide
bids 30 days in advance. Bid to value not
total debt.
Q. Are
there any specific legal issues that make Third Party Sales less attractive as a
disposition method in your State?
A. In
some counties, the distribution process gets bogged down and it takes anywhere from up to
180 days to get the money from the Sheriff.
Q. Is the
Sheriff entitled to a commission in the event of 3rd Party Sales?
A. Yes,
the Sheriff takes 2% of the winning bid and also deducts all costs of Sale and Taxes and
Municipal Liens before distributing the balance to the creditor. |
