The guy that used to live in the house across the street from me died and his kids live out of state and do not care to have anything to do with it. The taxes have been left unpaid and the sheriff posted it as delinquent and it will eventually go up for sale by the city. I'm considering it as a place for my son to live to give him some independence and have him learn to care for himself more.

For those that don't know, my son is a 24 year old autistic man and has had a violent outbursts toward me recently. His human services worker has been showing us group homes for him but they are less than satisfactory in our opinion and would be an absolute last resort.

What do I need to know about buying a house at sheriff's sale? Are there hidden costs? Will I be responsible for any payments that the ex-owner owed? Should I not even bother?

You need to check with a real estate attorney in YOUR STATE.

Different laws apply in each state.

There could be liens against the property that make it not a good deal.

Or it could be free and clear with just the taxes due.

A few hundred dollars to a real estate attorney could get you the answers you need to decide.

quote:

Originally posted by sig2392:
You need to check with a real estate attorney in YOUR STATE.

Different laws apply in each state.

There could be liens against the property that make it not a good deal.

Or it could be free and clear with just the taxes due.

A few hundred dollars to a real estate attorney could get you the answers you need to decide.

That's what I needed to know. Thanks.

I did it once on an open lot. It was a long process (multi-year IIRC), mostly due to all the 2nd chances for the previous owner to pay the delinquent taxes.

Might be worthwhile to contact the owners kids to see if they will sell to you before it gets to a sheriff sale.

I dont know if sheriff sales allow you any time for a walk through, let alone have a licensed home inspector check it over.

I dont know what your area is like but around Pittsburgh there are investor companies with deep pockets buying these houses to flip for profit. You could end up in a bidding war on a property that needs expensive repairs.

quote:

It was a long process (multi-year IIRC), mostly due to all the 2nd chances for the previous owner to pay the delinquent taxes.

That's basically how it works around here. You aren't really buying the property so much as you're buying the tax debt. The property will only really change hands after several cycles.

quote:

Might be worthwhile to contact the owners kids to see if they will sell to you before it gets to a sheriff sale.

This is what I would do, especially considering that other investors are likely already reaching out to them.

quote:

I dont know if sheriff sales allow you any time for a walk through, let alone have a licensed home inspector check it over.

Because you are only "buying" the property due to unpaid taxes, it's entirely possible that people are living on the property. Driving by is as close as you're generally going to get.

quote:

there are investor companies with deep pockets buying these houses to flip for profit. You could end up in a bidding war on a property that needs expensive repairs.

The mostly good news is that these investors know exactly what they're doing, and typically will never pay more than what it's worth.

I'm partially joking here, but......

You could also pay the taxes yourself, move in for 21 years, and take it through adverse possession.

I would read the terms and conditions on the ad in the legal section where it's advertised.
If the kids are allowing it to go to a tax sale, I suspect there is enough of a mortgage on it and the mortgage company will often be the highest bidder to protect their interest.
Then they will resell it.

There is no one occupying the property because the ex-occupant is currently unable to be there considering his death. I also highly doubt there's a mortgage on the property unless the kids mortgaged it and purposely let it go delinquent. Knowing the dead guy, if his kids are like him, I wouldn't doubt they'd do something like that.

Sounds like you guys are telling me it's not such a great idea or even likely. I can accept that.

quote:

Originally posted by 220-9er:
I would read the terms and conditions on the ad in the legal section where it's advertised.
...

it's not advertised yet. The family can still pay the delinquent taxes before it's listed. But they won't.

quote:

Originally posted by 220-9er:
I would read the terms and conditions on the ad in the legal section where it's advertised.
If the kids are allowing it to go to a tax sale, I suspect there is enough of a mortgage on it and the mortgage company will often be the highest bidder to protect their interest.
Then they will resell it.

Best answer.

Tread carefully, with legal and assistance. Buying directly from the kids with a legit title company/attorney handling the transfer would be the best option in my opinion.

Another thing to consider is if you need financing or not. A court/sheriff sale will likely require you to pay in full immediately. A sale with a 30-60 day escrow period will give a bank time to arrange financing and appraisal etc

I almost did this ~20 years ago, but on a piece of raw land. IDK about Pennsylvania, but you'll get a Sheriff's Deed, or something like that if you're the high bidder. There are issues like getting title insurance (at least initially) IIRC. I think liens are normally wiped, but sometimes people will wait until after a sale to invoice for work done.

None of my business, just food for thought.

When I read the op the first thing in my mind are you doing the right thing for your son.
You mention he is experiencing violent outbursts and the HS worker is suggesting a group home.
I'm no expert but putting him in a house by himself sounds risky.
Is his doctor ok with this idea?

quote:

Originally posted by gjgalligan:
None of my business, just food for thought.

When I read the op the first thing in my mind are you doing the right thing for your son.
You mention he is experiencing violent outbursts and the HS worker is suggesting a group home.
I'm no expert but putting him in a house by himself sounds risky.
Is his doctor ok with this idea?

Considering the condition of the group homes we've seen, yeah. Let's just say I wouldn't put a farm animal in some of them.

He wouldn't exactly be by himself and his doctor isn't involved in this process.

quote:

Originally posted by mark123:

quote:

Originally posted by 220-9er:
I would read the terms and conditions on the ad in the legal section where it's advertised.
...

it's not advertised yet. The family can still pay the delinquent taxes before it's listed. But they won't.

Most states I've seen require it be in the local newspapers legal section for the 4 weeks before the sale and it has to be paid for within days or that day of the auction.
Not finance friendly for most.
I've known people that buy stuff like this to rehab and resell and it's generally not for the inexperienced, or someone that can't stroke the check on the spot.
If it does have a mortgage as I mentioned above and the bank ends up owning it, that could actually be your best option as they will have to clear up the legal issues to sell it and are mostly interested in getting their money from the mortgage back.
They might even finance it but you or whoever qualifies for the loan is on the hook if future payments aren't made. You'd basically be co-signing or signing yourself.

If they’re like the tax sales in my state the last few years, a normal person doesn’t stand a chance. Real estate agencies seem to dominate the bidding, especially with their available funds and connections with banks and mortgage companies. I’ve seen them have them listed for sale on their website for almost double the winning bid literally two days after the auction closed.

Another thing to consider if bidding at a Sheriff's sale is to make sure that a title company will insure it afterwards.

I worked in title insurance for over 25 years in King County, Washington and we never insured a Sheriff's sale...ever. Now I have been retired for over 20 years so that thinking may have changed since then. As I suggested, talk to a title company before you bid.

It was a good thought for today but I'm going to let it go.

Maybe we can add a small addition for the boy to live in. We were planning to add a deck in the back but maybe a small efficiency apartment would be possible instead.