subject: Foreclosures in Lancaster, PA [print this page] Foreclosures in Lancaster, PA Foreclosures in Lancaster, PA
Lancaster, PA foreclosures are a fact of life. The foreclosure market is giving investors opportunities to invest in all types of real estate from residential, commercial and industrial. Whatever your niche market, real estate investing conditions couldn't be better. Affordable inventory, low interest rates and opportunities just around every corner of Lancaster. In fact, there are so many choices, sometimes it's hard to make the right decision. Just to give you an idea, there are approximately 406 foreclosure homes in some stage of the foreclosure process starting with pre-foreclosure, auction or REO. The average list prices of Lancaster homes the week ending January 5 was around $217,886. You can find real bargains at area foreclosure auctions.
Just in case you are not familiar with the Lancaster, PA foreclosure process, the pre-foreclosure short sales are still owned by the sellers. The auction properties and REO's have already gone through the judicial foreclosure process. The REO's are owned by the banks that foreclosed on the homes. The REO's offer less risk if you are concerned about buying a foreclosure property. You can obtain title insurance and conduct your inspections. The auction properties come with some baggage such as liens and possible former owners or tenants still residing on the properties that the successful bidders must evict after they acquire title to their property.
Foreclosure Auction Notices
The County Sheriff conducts the Lancaster foreclosure auctions. The notices are posted at the property and advertised in the local newspaper. Inspection dates will also be posted. You can only inspect the properties on those dates so arrange for your home inspection. Otherwise you will not have another opportunity to inspect. The auction rules require you pay cash so make sure you have your funds available at the end of the sale if you are the successful bidder. Try not to get carried away in the excitement of bidding. If you do your homework in advance, you can avoid making costly mistakes that you will regret down the road. Check the Internet for more information about the auction and to obtain pictures of the homes. Not every property may be a good deal for you. Keep in mind that a property may need a lot of work so if you are handy that is certainly a plus. Have your vendors, contractors, etc. lined up and ready to go so you can make your improvements and turn around and rent your property or resell it. Budget repair costs accordingly when making your bid. You can find some good deals if you search hard. Many times the banks buy the properties back at the auctions so don't expect that you will walk away from every auction with a treasure. If you are the lucky bidder, then you are truly fortunate.
REO's
REO's are a whole different ball game. They offer more options for some investors because you have the flexibility of paying cash or obtaining your own financing. You have time to inspect, and you don't have to worry about evicting anyone because the properties are vacant. REO's may need repairs as well so make sure you allow for that when you make your offer. Now you may run into a multiple offer situation on occasion because Lancaster REO's have become quite popular investment choices the past couple years. There are still many good opportunities because properties come on the market daily. The trick is to work with a REO listing agent so you get a heads up on the new inventory and can make your offer quickly before too many other buyers find out about the property when it goes in the multiple listing service. By establishing a relationship with a local Lancaster listing agent, they will alert you when a property is coming on the market that meets your criteria. Saving you the hassle of getting into a multiple offer or having to drive around the neighborhood looking for vacant properties and signs. That's still an option though, you may want to do that and contact the owner directly on a short sale. Then you don't have any competition. It may take longer to close the transaction though if you have to go through the short sale process. REO's and bank auction properties close quickly.
Short sales can take 3-6 months or even up to year if they are not pre-approved.
All in all market conditions couldn't be better in Lancaster right now. If you are just getting into the real estate market, it's a terrific time to get your feet wet. Don't worry about finding a property, you shouldn't have too much trouble. Keep an eye and ear open, network with other investors and have your buyers lined up if you decide to flip the property or assign it if you don't want to hold on to your jewel. Just get going on building your empire and generating your long term wealth by investing in Lancaster, PA foreclosure property today.
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