**[FEDERAL MARSHAL SALE FACT SHEET-EASTERN & MIDDLE
DISTRICT]{.underline} (Revised 05-24-06**)

**OVERVIEW:**

The United States of America, acting through Rural Development, United
States Department of Agriculture (USDA), provides loans to clients to
purchase properties that meet RHS eligibility requirements. If the
borrower is unable to comply with the repayment requirement of the
mortgage, Rural Development is required to foreclose on the property.
These properties are foreclosed on through the Federal Court System and
the sales are held by the United States Federal Marshals. The Marshal's
Service will advertise the sale date and sale requirements in local
newspapers. In addition, in an effort of outreach to potential buyers,
the USDA, Rural Development has established a website. For information
on upcoming sales, interested parties can locate properties at
[[www.resales.usda.gov.]{.underline}](http://www.resales.usda.gov./)
Each property will list a contact person that handles that property for
Rural Development.

**FREQUENTLY ASKED QUESTION (FAQ)**

***Question*:** How do I bid on these properties; what is the procedure?

**Answer:** You will need to know in advance the maximum amount you are
willing to pay for the property, and have available AT THE SALE, 10% of
that amount, in hand, in the form of a Certified Check, Cashier's Check,
or Bank Money Order. Cash, personal checks or bank letters of credit
will NOT be accepted. You cannot go to a bank after the sale to obtain
additional funds. The check or money order should be made payable to
yourself. If you are the successful bidder, we will show you how to
endorse the check to the Marshal. If you are bidding on more than one
property, you will need a check for each property. You cannot use one
(1) check to cover two (2) sales. It is your decision as to the
denominations of the checks. In some cases, a high bidder will have the
full 10% of what he intends to bid, and if he gets the property for less
than he intended, the additional amount of the certified check will come
off the total purchase price. In some cases, buyers prefer to have
numerous denominations of checks so they can "add up to" the 10% they
bid. Either is acceptable. If you overpay the 10% deposit and then
default, the Marshal will retain the 10% and refund the overage.

***Question*:** Do I get free and clear title to the property?

**Answer:** The terms of sale, which are read by the Federal Marshal
before bidding begins states, "The successful bidder takes the real
estate subject to, and shall pay all taxes, water rents, sewer charges,
municipal claims, and other charges and liens not divested by the sale,
and must also pay all state and local realty transfer taxes or stamps.
Based on the terms of sale, it is the buyer's responsibility to verify
through each municipality and taxing authority what is outstanding and
owing. Further, bidders should review all other title issues with the
assistance of a lawyer before bidding. The USDA, Rural Development does
NOT guarantee or warranty the title. Rural Development will not give any
form of title opinion.

***Question*:** Can I see the property before bidding?

**Answer**: Each sale is independent with regards to arrangements for
inspection. In some instances, the sale will be held at the property,
and the property will be opened for a walk through when feasible. In
other instances, an Open House will be established and the sale itself
will be at the local or federal courthouse. The Rural Development
website will provide you with this information for each property. In
some cases, it may not be possible to have an inspection. In those
cases, the buyer will be purchasing the property sight unseen. If a
buyer is unable to attend a scheduled Open House, Rural Development will
not schedule separate open houses for individuals. It is not required by
law that the property be made available for inspection. Rural
Development, in an attempt to encourage buyers to participate in the
sales, has agreed to make the property available for inspection when it
is feasible based on time constraints and other responsibilities. Access
to the property is at your own risk. Rural Development makes no
representations or warranties regarding the property.

***Question*:** The property I want to bid on is occupied, what do I do?

**Answer.** If the property purchased is occupied, it is the buyer's
sole responsibility and cost to remove the former owner(s) from the
property. The buyer is cautioned to seek his or her own legal counsel in
this process. Rural Development does not participate or assist the buyer
in this endeavor. The buyer should take this into consideration when
bidding. If the property is occupied, an open house or interior
inspection will not be possible.

***PAGE -2-***

***Question*:** Do you guarantee or warranty the property?

**Answer:** No. There are no guarantees or warranties on the property.
The buyer purchases the property at his own risk. The property is sold
"as is" and under and subject to the order of sale.

***Question:*** The website says "opening bid"; what does that mean?

**Answer:** Rural Development will calculate an opening bid for each
property. This is the amount at which the bidding will start. The
property will not be sold for less than the opening bid.

***Question***: Can I bring in an inspector or appraiser?

**Answer**: You may bring along an inspector or appraiser at your own
cost to a scheduled open house. However, we do not make the property
available for independent inspections or appraisals, or for the turning
on of utilities either before or after the sale.

***Question*:** I am the high bidder; how long will it take for a final
settlement?

**Answer:** Once the sale is completed, the results are presented to a
Federal Judge for final confirmation. If you are the successful
purchaser, you will be served with a copy of the Motion for Confirmation
when it is filed. Confirmation can take anywhere from 30 to 90 days
depending on the Judge. Once the sale is confirmed, the Marshal's Deed
will be prepared and sent to the Marshal's Service along with a copy of
the Judge's confirmation order. You will then be notified to contact the
Marshal's Service to exchange the remainder of the purchase price for
the Deed. Contact our legal counsel 45 days after the sale to determine
the status of the confirmation. The phone number is (215) 825-6347.

***Question*:** I was the high bidder; can I now take possession?

**Answer:** No. Until the sale is confirmed by the Federal Judge, and
the Marshal's Service contacts you to exchange the balance of funds for
the Marshal's Deed AND the Deed is filed at the Courthouse, you do NOT
own the property. If you enter the property, you do so at your own risk.
Occasionally, an issue may arise that prevents the Federal Judge from
confirming the sale. If this occurs, we will return the funds you put
down to secure your bid, and we will resell the property. It is
imperative that you do NOT do any work to the property. You will NOT be
reimbursed if you incur costs prior to final settlement.

**CLOSING COMMENTS:**

It is important to understand these sales are foreclosure sales. The
USDA, Rural Development does NOT own the property. Until the sale is
confirmed, title to the property remains with the borrower. At the
Marshal Sale, the Marshal is selling the property by Court Order, "from
the borrower" and "to the buyer" for the highest bid. Sales may be
delayed, stayed or set aside by the Court. There are significant risks
in purchasing these properties.

**FOR MORE INFORMATION**:

For more information regarding the foreclosure sales by USDA, Rural
Development, you may visit the website at:
[[www.resales.usda.gov.]{.underline}](http://www.resales.usda.gov./) The
website will provide you with a direct contact and telephone number at
Rural Development for each property.

**SAMPLE:**

**"NOTICE OF MARSHAL SALE" ANNOUNCED BY MARSHAL**

**NOTICE OF U.S. MARSHAL SALE OF REAL PROPERTY**

**Public notice is hereby given, that by virtue of an Order dated
\_\_\_\_\_\_\_\_\_\_ issued out of the United States District Court for
the \_\_\_\_\_\_\_\_District of Pennsylvania, in Civil Action
No.\_\_\_\_\_\_\_\_\_\_ on a judgment in the amount of
\$\_\_\_\_\_\_\_\_ plus interest from \_\_\_\_\_\_\_\_, rendered in said
Court, in favor of the United States of America and against
\_\_\_\_\_\_\_\_\_\_\_, the following described real estate, located at
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Pennsylvania, shall
be offered for sale on \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ at
\_\_\_\_\_\_\_\_\_\_\_\_\_ at the property address of:
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_, Pennsylvania, at public auction, to
the highest and best bidder by the U.S. Marshal for the Eastern District
of Pennsylvania:**

**ALL THAT CERTAIN BEING KNOWN AS: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_,
Pennsylvania \_\_\_\_\_\_\_\_\_\_\_ County Parcel Number
\_\_\_\_\_\_\_\_\_\_\_\_\_.**

**Terms of Sale: Ten percent (10%) of the highest sum bid must be
deposited by the highest bidder in cashier's check or certified check
with the Marshal upon the property being struck down to such bidder.
Upon failure to make such deposit, the bidder shall lose the benefit of
this bid and the property may be immediately put up again and sold
unless a deposit of the sum required be made by a second bidder willing
to take the property at the highest priced bid. The balance of the
purchase price shall be paid in cashier's check or certified check
within (10) ten days after confirmation of the sale by Court Order
without any demand being made by the Marshal. Otherwise, the Marshal may
settle with a second bidder who has made the required deposit at the
Marshal's Sale and thereby registered his willingness to take the
property at the highest price bid, provided such second bidder deposits
the balance of the purchase price within 10 days after notice from the
Marshal of the first bidder's default. If no second bid be registered,
the property may be sold again at the risk of the defaulting bidder, and
in case of any deficiency in such resale, the defaulting bidder shall
make good the same to the person injured thereby and the deposit shall
be forfeited and distributed with the other funds created by the sale.**

**Bidder must have proceeds immediately available and on his person in
order to bid, bidder will not be permitted to leave the sale and return
with proceeds. The successful bidder takes the real estate subject to,
and shall pay all taxes, water rents, sewer charges, municipal claims,
and other charges and liens not divested by the sale and must also pay
all state and local realty transfer taxes or stamps, to the extent the
funds created by the sale is insufficient to pay such transfer taxes.**

**Distribution of Proceeds: A Schedule of Proposed Distribution of the
proceeds of sale will be filed with the Marshal within 10 days of
confirmation by Court Order of the sale. No Schedule of Distribution
will be filed if the property is sold to the Plaintiff for costs only.
The Marshal shall distribute the proceeds of sale in accordance with the
proposed Schedule of Distribution unless written exceptions are filed
with the Marshal not later than ten (10) days after filing the proposed
schedule.**

**For information concerning the amount that Plaintiff intends to bid or
for other information you may contact \_\_\_\_\_\_\_\_at
\_\_\_\_\_\_\_\_ or Plaintiff's counsel \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
at \_\_\_\_\_\_\_\_\_\_\_\_.**

**For a complete list of all properties offered for sale by the
Department of Agriculture go to:
[http://www.resales.usda.gov](http://www.resales.usda.gov/)**

**The sale may be postponed in accordance with Pa. R.C.P. 3129.1 et seq.
for up to 100 days. Please contact \_\_\_\_\_\_\_\_ or
\_\_\_\_\_\_\_\_\_\_\_ at the above phone numbers prior to the scheduled
sale date to confirm that the sale will proceed.**