I was thinking of buying a foreclosure or sheriff sale property. Does anyone have any advice?

I am currently in the state of Pennsylvania and am looking for an investment property either here or in New Jersey. I understand that I would have to put work into most of these properties but I wanted to know if I bid on a property at a sheriff's sale do I have to have all of the money at the time of the sale or can I pay a percentage down and pay a mortgage on the rest? Any advice or tips would be greatly appreciated!

For a sheriff's sale the property has to be paid in full. It would be next to impossible to mortgage a sheriff's sale property as the reason for the sale is usually due to an unpaid lien on the property. While the lien would be expunged after the sale there may be additional interests (other liens) on the property. You must perform your due diligence prior to purchase. Anyone still residing at the property would be your responsibility to deal with (serving eviction notices). Most of these properties are undesirable investments although if you are willing to put the work into finding a property and performing the research it may be possible to find something that would provide positive returns down the line.

I once had a customer that did this for a living. Typically he only had to have a deposit to put down. Just do your homework. If there are any liens on the property you will be responsible for paying them.

Yes do your homework and make sure the property comes without strings attached. Learn basic things about houses like how to tell if it needs repairs or what kind of things to watch out for. Most foreclosure sales have no warranty or guarantees whatsoever so you have to learn how to do research yourself. Talk to a realtor before you go into this business!

The best thing you can do to protect yourself is have a Title search done. You could end up buying more than what you bargained for.

marksaveshomes.com

Foreclosures are trustee sales and are all cash. Sheriffs sales have a right of redemption depending on your state up to 2 years. REO are homes that did not sell at the trustee sale (auction) and your best bet to get a Bank owned REO, they may even help you get a loan from them.

The rules vary from state to state & type of sale. You must understand 100% on what you are bidding for at the sale & what loans could possibly remain on the property & what liabilities you may inherit once you own the property.

Some states & auctions require 100% of the money at the sale. Others will require a deposit with the balance due very shortly.
Line up your lending sources, have a hard-money lender as a back up if you can't get traditional financing in time. If you have equity in your home get a HELOC.