How would it feel if you could buy a house for less than its worth? Does it not sound good to be true? Is it?
With the right guidance and a little patience, you can get yourself a foreclosed home in Texas and save big.
Read this article to learn more about how you can buy a foreclosed home in Taxes.
What is Foreclosure?
Foreclosure is a “dreaded” word, for homeowners but it means a great opportunity, for homebuyers and homeowners. Even the lender stands to benefit from the sale of a foreclosed home.
But what exactly is it?
If a person stops giving a loan of their home, the bank has a right to take the property. To avoid having a foreclosure in the record, homeowners may try to sell the property at a lower price.
Even the bank will want to sell yourhome quickly, after its possession.
This means, in order to get off the lenders’ hands, they are trying to sell the property at a low price. They’re happy, as long as they can regain the amount that was left on the mortgage.
This creates a good opportunity for people who are planning to start investing in real estate and get a nice deal on a home or planning to buy a home.
In this stage, the owner of the property receives a legal notice from the bank to bring the payment up to date, or else their property will be taken.
In Texas, homeowners do not have many options as the lenders take their property and put it up for auction after around 120 days.
Most of the properties are bought at this time, as in auction the competition gets more challenging, and the prices go higher, which covers the lender’s legal cost.
Let’s see the things you need consider in a Pre-foreclosure purchase.
Basic Steps to Follow During Pre-foreclosure Purchase Process:
- Get in contact with the homeowner immediately. Talk to him in a pleasant way, ask for an appointment to view the property, and discuss the possibility of buying it.
- Contact an agent or broker. For your assistance, there are many agents/brokers who understand the foreclosure market uniquely.
- Once meeting the homeowner, inspect the property carefully and take pictures for your file. You can also make a checklist to take important notes throughout the tour.
- If you have found the property of your choice, schedule an independent inspection. Some hidden defects may lurk between the walls and beneath the surface, even though the house may look in fine condition.
- If you are satisfied with the inspection result, then make an offer to buy the property.
At this stage, many properties in Texas are sold at auction, the prices could be higher to cover the lender’s legal cost and the competition could be tougher.
It is also unlikely that the owner of the house can be able to avoid foreclosure. Therefore, the property will be auctioned to the one whose bid is the highest.
Basic Steps to Follow When Buying a Property at a Public Foreclosure Auction Sale:
- Get in contact with the lender’s attorney, public trustee, trustee, or sheriff and ask about the requirements to purchase a property at the auction.
- Ask the trustee to get you a copy of the purchase agreement that you will need to complete after winning the bid. Carefully get it reviewed by your attorney and negotiate any changes in advance.
- Examine the property carefully. Take pictures, if needed.
- On the day of the public foreclosure auction sale, be conscious of your competition and increase your bid to exceed others. • When you win the bid, as per the directions of the lender’s trustee complete the transition by signing the purchase agreement and submitting the deposit.