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Bank foreclosures can sometimes be a good source for finding the
right home. There are several options for locating bank
foreclosures. The first is at the county tax office. Properties
are auctioned off on the courthouse steps usually by trustees
who represent the bank or lien holder.
Auctions are always held the first Tuesday of every month
beginning at 9:00 to 10:00 o’clock in the morning.
Be sure to check with your local with your local officials to
verify times and locations at the courthouse.
Risks in purchasing a home at auction
Latent Defects
In most real estate transactions an inspection is a vital
process that is strongly recommended. Not having the property
inspected could be an expensive mistake if the property has
latent defects such as foundation repairs or other major
structural issues. Many lender may require that repairs be made
before any financing is considered.
Liens
Another issue is whether the property has liens against it. In
the traditional real estate transaction when the transaction
goes into escrow at the title company or attorney’s office, a
title search is conducted. If there are any liens against the
property the title insurer will note those in the title
commitment.
It is possible to discover any liens against the property before
the sale, and extreme due diligence is necessary!
Occupants
A buyer may find unexpected occupants in the property. The
previous owner may still be occupying the property or could have
leased out the property. The new owner would have to use a
lawyer to evict process to get the occupants out.
Bidding!
In the excitement of bidding sometimes buyers lose perspective
and wind up paying more than they should for a property. A buyer
needs to do their homework and know the home values in the
neighborhoods or area and stick with the price that they have
determined before the sale to offer!
But it can work!
You can buy a bank foreclosure and come out on top!
If you are interested in purchasing a foreclosure it would be in
your best interest to use an agent to represent you in the
transaction. The buyer agents' commission is paid by the seller
through the listing agreement with the listing broker just like
any other real estate transaction in Texas.
The listing agent of the REO (real estate owned) property for
sale represents the lender and not the buyer in most
transactions. |
