Pittsburghers are buying houses at bargain prices at a number of auctions that are being held across the area. In the last few months, a company that based in California has sold over 30 foreclosed homes through auctioning in Pittsburgh. The properties are sold to the highest bidders and well below their real market values.
Many would be home buyers are going to the auctions with the hope of getting a home of their own. The bids start from as low as $1000, and rise depending on the bidders. Most homes are going for less than $20,000. This is a big bargain considering that the houses were once over ten times what they are being offered now. Depending on the type of house and the completion from the bidders, prospective home buyers can expect to own a home for as little as $1,000 to well over the hundred thousands region.
Houses in Pittsburgh not only attract first time home buyers, they are also a favorite among newbie and established real estate investors. Many people have bought foreclosed properties with the intention of leasing them out or refurbishing and putting them back in the market when the housing market crises is over. Some of the properties definitely will require some repairs as some home owners who are vacating have a tendency of destroying the houses before leaving. This is why it is advisable to inspect the house before deciding to go for the auction.
With banks having put many properties on foreclosure, there is a good opportunity for people to buy homes in Pittsburgh. Many banks are using private companies to liquidate the foreclosed properties through auctions. The foreclosure business has been booming and this can be attributed to the incentives that have bee provided by the Obama government. The $8,000 tax cut has made many people consider buying their own homes.
With one of the longest foreclosure periods in the United States, Illinois law can be a nightmare for lenders who just want to recoup some of their loss after a buyer defaults on a mortgage. Unfortunately, the law is very specific about the judicial process which must be followed. For example, after the complaint of foreclosure is filed by the lender with the courts, the borrower is given a full month to respond. Even if no response is received, the lender has to give the borrower 90 days in order to pay off the debt and re-acquire the property. That's one of the drawbacks of looking at Chicago foreclosed properties.
Another reason you may not want to choose Chicago foreclosed properties is the auction price. Once the redemption period of 90 days expires the property can be sold. However, the starting price for the property is always going to be the amount due on the mortgage. While you might still be able to get a good deal this way, most of the time you'll end up paying quite a bit for the Chicago foreclosed properties.
Even once all of those steps have been followed and you've paid for the Chicago foreclosed properties in full, you still have to wait over 10 days to receive the deed of ownership.
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