If you are entering the housing market in Lancaster County, you might want to look at foreclosed homes in PA. The market has been flooded with foreclosed properties in recent years. While the condition of foreclosed homes varies from house to house, buying a foreclosed house can be a great way to buy a below the market price. The process may take longer than a standard home purchase, but if you have the time and the inclination, buying a foreclosure might be the right choice for you.
What Is A Foreclosed Home?
A foreclosed home is a home that has been repossessed by the bank because the owners were not able to keep up with the mortgage payments. The fact that the bank owns the home distinguishes a foreclosure from a short sale, in which the homeowner can no longer make the payments but still owns the home. With a short sale, the homeowners and the bank agree upon the selling price in order to avoid a foreclosure. With a foreclosed home, the bank typically sells the property at a below market price, in its current condition, hoping to recoup as much of the mortgage loan as possible.
How To Buy a Foreclosed Home in PA
In many ways, buying a foreclosed house in PA is like buying any other house. You have the opportunity to tour the home so that you can see what type of condition the house is in. You can–and should–have the home professionally inspected for any hidden problems. You will go through the same mortgage qualification process with your bank, and taking out the loan and repaying it is the same as with any other home purchase.
But there are a few key differences that come with buying a foreclosed house.
- Don’t ask for repairs: While you can tour the house and have it inspected, do not expect to ask the seller to make any repairs. The bank will most likely sell the house “as-is.” It is important for you to see it and have it inspected so that you know what you are getting into, but expect to pay for repairs yourself.
- Expect to pay the asking price: The price is also typically non-negotiable. The bank has set the price at what it considers to be appropriate and probably will not budge. However, that price tends to be below market so negotiating a lower price should not be necessary.
- Be patient: foreclosures usually take longer than standard home sales. Be prepared to wait for the home sale to go through.
Foreclosed Homes For Sale in Lancaster, PA
If you are wondering where to find foreclosed homes in Lancaster County, the answer is: everywhere! If you like city living, there are row houses under foreclosure in Lancaster City for under $35,000. For small town living, there are several foreclosed homes available in the borough of Mount Joy, starting at $75,000. Suburban homes are under foreclosure in Ephrata starting at $85,000. Lancaster County ranges from the truly rural to the suburbs to the city, and there are foreclosed homes of all types available in all of these environments, from row houses to farmhouses and everything in between. If you have a particular location in mind, chances are there is a foreclosed property for sale there.