Looks like we’ve moved into a new phase of the foreclosure market.
I received two calls last week from successful bidders on property at sheriff’s sale. For those not in PA, that’s how the counties manage the sale of properties – usually for unpaid taxes or mortgage foreclosure.
Bothwanted to know if they could purchase title insurance after the sale. Since a Sheriff’s Deed can take several months to be delivered to the new owner, it’s not a risk most title insurance underwriters would take. We weren’t able to help them.
What’s noteworthy:
- Both called AFTER they purchased the property, not before
- Both freely admitted that they really didn’t really know what they were doing when purchasing a property at sheriff’s sale.
Two thoughts:
- It’s usually at the end of a cycle when neophytes get involved – remember the cab drivers recommending internet stocks?
- There will be continued pain for distressed properties and neighborhoods as those who are neither experienced in nor ready for the challenges of turning around these properties assume ownership.
2 responses so far ↓
Diane Cipa // April 15, 2007 at 9:39 am |
You’re right, Dave, about the inexperience of buyers. We have a procedure for purchasers approaching a sheriff’s sale. I hadn’t thought of posting it but I’ll do so on Title Insurance Talk.
Dave Wirsching // April 22, 2007 at 7:31 am |
For those who just can’t resist – a decent summary on foreclosure propeties:
http://www.consumeraffairs.com/news04/2007/04/buying_foreclosure.html