The main reason for confusion in the housing market today is due to foreclosures. In the past few years, some Pennsylvania foreclosures have spun out of control because of increasing number of residents doing defaults on their mortgage loans. It creates excellent opportunities for purchasers and investors as properties in foreclosure, or short sales start overwhelming the market at cheap rates. But similar to any other investment, capitalizing in Pennsylvania foreclosures has its risks and rewards.
Sales of Pennsylvania Foreclosures can be broken into three groups: Public trustee/sheriff auction, Short sales, and Bank Owned (Real Estate Owned) properties. All these three factors carry different types of risk but offer the same reward: You can purchase property much below market value.
Short sales offer less risk as well as less reward. In a short sale lien, the holders are willing to take a quick pay off, and the investors can then purchase the property at a discounted price, slightly below the market value. But short sales generally take several months to complete hence investors should be patient and willing to risk a situation where the banks may not grant approval.
Only 1 out of every 3 short sales close, the rest end up at County Clerk’s auction of Pennsylvania foreclosures. Investors should arrive at these auctions with ready cash for the complete purchase amount. Investors secure little opportunity to inspect and evaluate the condition of the property and are required to purchase as-is at auctions with taxes and liens outstanding. There is an extremely high risk as investors can be saddled with properties carrying great structural damages and they are forced to resell at a loss.
The 3rd category is purchasing from Banks or REO properties. This level of investment has low risks as the banks take care of all liens and taxes outstanding. Also, prior inspection of the physical property premises and its neighborhood is allowed along with the option to cancel the contract if anything is amiss. Participating in Pennsylvania is a fruitful plan due to several reasons. It possesses an excellent educational and sporting infrastructure. It owns a humid continental climate. In 2008, the GSP of Pennsylvania ranked 6th in the nation. It amounts to the 18th largest economy in the world. Pittsburgh and Philadelphia are home to several Fortune 500 companies.
Pennsylvania ranks nineteenth in agricultural production overall.
The government has legalized Casino gambling in the state recently. It possesses five hundred public school districts, hundreds of private schools, public colleges, institutions and universities of higher learning. This state is home to the nation’s first zoo. It owns 121 state parks, several amusement parks, and art museums. Pennsylvania hosts music festivals and hunting sports. College basketball and football are popular. It demands the country to manufacture pretzels and potato chips and is the home of Hershey’s chocolates. If you invest in Pennsylvania foreclosures, it will give you the chance to be part of all the action.
Author’s Bio
Mark William is a professional real estate agent who works at a reputable real estate organization in Pennsylvania. He has helped various property investors in finding the right houses for sale in Pennsylvania. Mark believes in collective efforts, and he is always ready to guide and help property seekers in Pennsylvania.