Pennsylvania situation guide · Updated November 2026

Wholesaling REO Bank-Owned Properties in Pennsylvania

Wholesaling REO bank-owned properties in Pennsylvania means getting a contract on a house a lender has taken back, then assigning that contract to a cash buyer for a fee. The bank wants the house gone. You bring a buyer. Because Pennsylvania foreclosures run through the courts, REO homes arrive in a steady but slow stream, and Lehigh County is one of the busier places to watch it.

Judicial foreclosure stateAct 52 wholesaling rules100% online mentorship

Get the free starter kit Book a free call

Call/Text818-532-0481

Let’s find your starting point

Explore the mentorship.

Request a free fit call to discuss your goals and whether the program is right for you.

The short answer

Can you wholesale a bank-owned house in Pennsylvania?

Often yes, but the bank decides what it will sign, and Pennsylvania now regulates wholesale transactions on residential property. Read the current licensing law and the contract addendum before you put your name on anything.

An REO, short for real estate owned, is a house that did not sell at the sheriff’s sale and went to the lender. Most banks hand it to an asset manager and a listing agent. You usually deal with that agent, not a person who knows the house. Our REO guide explains how the pipeline works, and our off-market guide shows where these deals hide before they reach the MLS.

Pennsylvania added residential wholesaling to its real estate licensing law in 2025. In general, a wholesale transaction means promoting an equitable interest in a home, without owning it, with the plan to assign it for a fee, and the law calls for a consumer statement. Details can change, so read the current text and the State Real Estate Commission’s guidance. See our license guide and legality guide.

REO Bank-Owned Properties in Pennsylvania at a glance

Foreclosure type	Judicial: a court case, then a sheriff sale
Who sells REO	Lender asset managers and listing agents
Borrower notices	Act 91 and Act 6 notices come before suit
Transfer tax	State 1% plus a local share, due at recording
Wholesale rules	Residential wholesaling is covered by licensing law
Seller disclosure	Banks often limit what they know or promise

The opportunity

Why REO deals work in Allentown and Lehigh County

Allentown sits in a market where investors from the New York and New Jersey side already compete for rowhomes and twins. That helps you. When a bank lists a dated twin on an Allentown side street, a rental buyer can see the numbers fast. The bank does not care about a small gain. It cares about a clean close and a signed contract. A wholesaler who sends a proof of funds and a short timeline can look better than a retail buyer with a loan. Keep in mind that many REO listings do not allow assignment, so ask first. Use the ARV calculator before you make any offer.

Motivated sellers

A lender holds the house and carries tax and insurance costs. Read our negotiation guide.

Repeat buyers

Landlords in the Lehigh Valley buy several houses a year and want a steady supply. See finding cash buyers.

Clear process

Banks use written offers, deadlines and standard addenda, so you know the rules up front.

Get the free starter kit See the mentorship

Lead sources

Where to find REO leads in Pennsylvania

Sheriff sale results. Track Lehigh County postings, then see which houses went back to the plaintiff bank. Our auction guide explains the steps.
Listing agents. Ask local agents who handle bank listings to add you to their buyer list.
Asset manager portals. Many lenders post inventory through approved vendors.
County records. Search for sheriff’s deeds to a bank, then look for a listing or a vacant house. See finding an owner.
Driving the area. Look for lockboxes and bank signs. See driving for dollars.

Your exit

Who buys REO homes in Pennsylvania

Small landlords, rehabbers and local flippers buy most bank-owned homes you will tie up. They know Lehigh County rents and repair costs. Give them photos, a repair estimate and a clear closing date.

Use an investor-friendly title company that understands assignments and bank closings. Banks often want a short close, so line up funds early. If your assignment is not allowed, ask about a double close.

Book a free call

Step by step

How to start wholesaling REO bank-owned properties in Pennsylvania

Find the listing. Pick a bank-owned house from a listing or a sheriff sale result.
Check the rules. Ask whether the bank allows assignment and read the addendum.
Price it. Run comps and the MAO calculator for a safe offer.
Make the offer. Submit it through the agent. See our offer guide.
Line up a buyer. Send the deal to your list with a deadline.
Give the required statements. Follow current Pennsylvania wholesale rules and keep a clear paper trail.
Close. Use the title company and confirm the transfer tax split.

Your checklist for wholesaling REO Bank-Owned Properties in Pennsylvania

Ask the bank in writing whether assignment is allowed.
Read the current licensing rules for wholesale transactions.
Check for liens and open code issues before you sign.
Plan for state 1% transfer tax plus the local share.
Set your buyer deadline ahead of the bank deadline.

A Pennsylvania example: a bank-owned twin in Allentown

Bank asking price	$142,000
Your accepted offer	$126,000
Estimated repairs	$38,000
ARV from comps	$225,000
Assignment fee	$9,500
Buyer’s all-in cost	$173,500

A listing agent posted a vacant twin near Allentown after a Lehigh County sheriff sale returned it to the bank. It had old windows and a bad roof. You toured it and priced repairs at $38,000.

Comps said $225,000 after repair. You offered $126,000, the bank countered at $128,000 and you settled at $126,000 with a 21-day close. The asset manager confirmed assignment was allowed in writing.

A local landlord paid you a $9,500 assignment fee and closed with cash. You gave the consumer statement the law calls for and left the buyer to rehab.

Pennsylvania rules to know

Foreclosure, licensing and transfer tax rules

Pennsylvania foreclosure is judicial. A lender files suit, and before that a mortgage borrower should get an Act 91 notice and an Act 6 notice, which is why banks are careful with their paperwork. If the sheriff sale fails to find a buyer, the lender takes the house. Check the deed and recorded documents before you assume title is clean.

Wholesaling is now tied to the real estate licensing law, so check current rules, ask a Pennsylvania attorney and read the State Real Estate Commission’s guidance. The state realty transfer tax is 1% of value with a local share on top, and buyers and sellers can split it. Read our attorney guide.

Learn it with a mentor

Get help with bank-owned deals

REO deals bring contract questions that books do not cover. Mentorship students send us bank addenda and we help them read the fine print before they sign.

See the course See the mentorship

FAQ

REO Bank-Owned Properties in Pennsylvania: common questions

Is wholesaling REO bank-owned properties in Pennsylvania legal?

Generally yes, if you follow the current licensing law for wholesale transactions and the bank’s contract terms. Ask an attorney. Banks use their own forms and often restrict what buyers may do, so read every clause before you offer or promise anything.

Do banks allow assignment?

Some do and many do not. Ask in writing before you make an offer. If the bank forbids assignment, a wholesale plan may not work, so get the answer first and then decide whether to pursue the property or move on.

Does Pennsylvania use judicial foreclosure?

Yes. A lender sues, wins, and the sheriff holds a sale. Unsold houses go to the bank. That is how many REO properties come into the bank’s hands, so checking sheriff sale results can show you which houses may soon be listed.

Who pays transfer tax?

The state tax is 1% and a local share applies. The contract decides who pays, and both sides can be liable. Banks often have set rules about closing costs, so read the bank’s addendum and ask the title company for a full estimate.

Where do I find REO listings?

Check listing agents, asset managers and sheriff sale results in your county. Introduce yourself to the agents who list bank properties, ask how they want offers submitted, and keep a short list of counties so you can monitor new listings regularly.