Overestimating the value of a foreclosed home leads lenders to set too high a minimum bid at the sheriff's sale, which lowers the chance that someone will buy the home at the auction and take it off the lender's hands.
Buyers should pay more for REO homes, which they can inspect, than they would for a home at a sheriff's sale, where inspections are limited or impossible.
This includes foreclosures or sheriff's sales
, garnishments, collection calls and the commencement or continuation of a lawsuit.
"Sheriff's sales and all legals are not a profit center for us," said Stephen W.
Mack, general manager of the 25,100-circulation weekly, said it wasn't too long ago that sheriff's sale notices constituted 3% of all legal advertising.
More of the homes sold in sheriff's sales are older and located in lower-income neighborhoods; 33 percent of nonforecloseci homes were built before 1941, compared to 61 percent of foreclosed homes; and 27 percent of nonfbreclosed homes were located in high-poverty census tracts, compared to 60 percent of foreclosed homes.
I considered a sale a foreclosure if the transaction is recorded as a sheriff's sale. (1)
Pennsylvania's deficiency judgment procedures provide that if the lender is the successful bidder at the sheriff's sale
for the property and then wants to pursue the borrower or any guarantors personally after the sale has occurred, the lender must first petition the court to fix the fair market value of the real estate in question.