Check the Notice of Sale when buying a Texas foreclosed home for the property details, requirements and qualifications needed.
Many buyers associate buying a foreclosure with getting a steal of a deal. Whether you’re a buyer interested in getting the home of your dreams or making the investment of a lifetime, to purchase a foreclosed home in Texas you should be sure to evaluate the requirements and qualifications needed to satisfy this type of transaction first. Buying a foreclosure requires careful budgeting, the right real estate team and the mental resolve to see the purchase through.
Many people are attracted to the idea of buying a foreclosure in the hopes that they’ll get a great home for an extremely low price. However, buying a foreclosed home is much harder than you might think and should only be done with much consideration. Continue reading to learn some of the requirements for buying foreclosed homes in Texas.
First off, Texas foreclosures can either be judicial or non-judicial. Judicial foreclosures have been filed with a court and ordered by a judge, while non-judicial foreclosures have no judicial involvement whatsoever. Homes that are sold through a non-judicial foreclosure are typically auctioned off on the first Tuesday of each month.
When a Notice of Sale (NOS) is filed with the county clerk, it’s usually posted on a bulletin board in the courthouse lobby 21 days before the sale takes place. It must also be advertised in the local newspapers; giving you three places to look for foreclosure sales. Look for a Notice of Substitute Trustee’s Sale or Notice of Trustee’s Sale. Here, you’ll find the property’s legal description, the debt owed and the exact time of the sale on these notices.
You should practice due diligence before you even contemplate bidding on a home. Research the title of a real estate property of interest to check for the balance of the main lien and possible second or third liens. You’ll be responsible for all liens if you buy the property. The cost of clearing liens can offset the equity in the home. A real estate attorney may be able to help you clear liens without paying for them and you’ll want to know if they can before you buy the home. The trustee on the NOS can give you any additional information needed.
When buying a Texas foreclosure, know that you’ll be buying the property as-is, meaning there will not be any warranties included. If possible, you should have the property inspected before the sale so you know the condition of the property prior to bidding on it. A real estate agent may have a better chance of arranging an inspection than you do. An agent will also be helpful during the foreclosure sale as auctions can be chaotic and overwhelming.
The qualifications for buying foreclosed Texas homes typically include a pre-approval letter from a mortgage lender or proof of funds to buy the home with cash. Additionally, you will need a cashier’s check for a down payment on the day of the sale. The requirements for buying foreclosed Texas homes vary per sale, so find out exactly what you will need before you attend.
If you prefer not to go to foreclosure auctions, you can buy foreclosed Texas homes from the U.S. Department of Housing and Urban Development (HUD) website. There are hundreds of foreclosed listed here, but you will need a HUD-approved real estate agent to place your bids for you. You can also buy foreclosed Texas homes directly from lenders. Banks and mortgage lenders often have these homes for sale on their websites or through local real estate agencies.
To view free foreclosed real estate listings in your area, go to RealtyNow.