Real Estate foreclosure auction in Houston, Texas can be a gold mine for the buyers, because it is a huge foreclosure market in the United States, apart from areas like Denver, Atlanta and Detroit. For first-time buyers as well as property investors, this is the right time to benefit from Houston foreclosures that are offered for sales.
As a buyer, you will find many properties that include HUD properties and Veterans Administration that have been taken over by the government as well as properties that have been recovered by banks and financial institutions. The Texas foreclosure auction is such that one has only a month or two to act before the proceedings go underway. There is no redemption period in Texas. The seller wisely has to stop foreclosure by selling of the property to an investor quickly.
Let us now understand how foreclosure auction takes place and how it affects the seller and the buyer. For the Seller: There are two types of foreclosure proceedings in Texas. One is judicial disclosure in which the court forecloses the property. In this the lender goes the legit way, by filing a lawsuit and procures a court order, which gives it the right to auction the home to repay the default mortgage money.
The second and more common procedure is the non-traditional foreclosure in which through the ‘power of sale’ clause in the mortgage agreement, the lender can initiate foreclosure proceedings quickly without filing a lawsuit. The lender only has to send a letter, intimating you that you have 20 days to pay off the default amount. If you are not able to pay in 20 days, you get another letter informing you that the full balance is now remaining. This step also known as ‘loan acceleration’ tells you about an auction date set for the home.
This is followed by the sale notice; a foreclosure notice is filed with the court clerk with a copy sent to you at least 21 days before the said auction. Real Estate foreclosure auction in Houston, Texas happens on the first Tuesday of the month on the county courthouse steps. The house is sold to the highest bidder at a public auction.
For the Buyer: If you are eyeing for VA or HUD Houston Texas foreclosure, you can qualify as a buyer if you want to make the property your primary residence. If you are interested in buying it for investment, then you have to go through the real Estate foreclosure auction in Houston, Texas. Bank held foreclosures for properties in Texas are available for both home buyers and those who are looking at it from an investment perspective. Bank foreclosures have an easy process compared to government foreclosures and can be bought directly from the lenders, who can also arrange for a good financing method.
When you go to the real estate foreclosure auction in Houston, Texas, you can find different types of homes that are up for sale, like single family homes, multifamily homes, duplexes and condos. You may also check with the foreclosure listings online to zero into the right choice for your foreclosure home.
The cheap prices at which residential homes are sold are an attractive incentive to first time home buyers. You also get loan assistance at the auction site. There are auctioneers and real estate agents who can help you close the deal well. Banks are keen to sell of foreclosure properties so that they can avoid the high maintenance costs. Even those with poor credit history can make the best of these loan facilities. The process of property buying and selling at the Real Estate foreclosure auction in Houston, Texas is ethical and transparent, so it is highly recommended to buy property from the auction site.