When you purchase a home at a St Tammany Parish foreclosure sale, you have two options. You can pay cash the day of the sale, within a few minutes of your purchase, or you may pay 10% the day of the sale, within just a few minutes of your purchase, and then you have 30 days to pay the remaining 90%. Now understand there are exceptions to the rule. Some foreclosures require 100% of the final sales price at the moment of adjudication, basically within a few minutes of your purchase. There is not an option to pay only 10% and then pay 90%. So listen carefully, for the Sheriff's Officer will call it out before the sale.
Now this post covers Appraisals. If you go the route of only paying 10% of the purchase price, and financing the remaining 90% within 30 days, whomever you go through for financing is going to require an appraisal on the property. They require this to protect their interests. To make sure the asset you are purchasing is worth the money you are borrowing. Due to the fact you have only paid 10% down on the purchase of this property, you do not have legal access to the property and in turn neither does the bank nor the bank's appraiser. Simply put, the bank will not like that. They will feel they cannot get a true valuation of the property without access, and some banks will turn down your purchase for this reason. Make sure you clear this with your financing company prior to bidding.
Understand as well, the appraisers the Sheriff's Office subcontracts out too, when an appraisal is ordered on a foreclosure. These appraisers are not allowed access to the properties either, therefor the numbers seen on the day of the sales, may not accurately reflect the current condition of the home. I have no doubts the appraisers put forth their best efforts, but these appraisals are done from the street. Verify all information with your own eyes if you can. Pull your own separate numbers in comparison. It is for your protection.
The appraisal of a property scheduled for foreclosure can be obtained from the Sheriff's Office the Monday before the sale. 985-809-8036, but make sure to have the Sheriff's sale number of the property. (IE 2009-1234X), the address will do no good. This is not how the Sheriff's Office keeps track of the sales.
If you have any questions, please post or email.
Thank You
Marc Pellettiere
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