Forclosure bidding at courthouse

How does it work. Where does the bidding start on say like a 200,000 property. I was looking in the newspaper and saw properties and looked up the county assesed value. Can someone give me some info.

Howdy Gltucker76:

The trustee will start the bidding usually at the amount of the loan balance including attorney fees, late fees etc. This is not always the case but for the most part. On tax sales and the like, the bidding will start at the amount of tax due on the property.

Always know what you are bidding on and have a title search done.

Hope this helps

Thanks tedjr for your info. I think I’ll go see a couple and see what really goes on.

You forgot to tell 'em one thing tedjr You need cash to do an auction deal.

Hi tedjr and all,

“Always know what you are bidding on and have a title search done”

I subscribe to, they provide report about
the property, including valuation.

would you consider their report a good enough
title search?

If not, what is the reccomended way to do title search?


Howdy Jimmy:

I bet you if you check their site they say they are not responsible for errors or ommissions or unrecorded liens etc.
I just had a title company call me about an unrecorded lien that I gave but the seller never recorded. I sold the property and had not remembered the lien. The builder was selling the house they had built and up pops this newly recorded lien. The title company would have paid this as part of their insurance and would have had to collect against me if I had not taken care of it.

This is just one small example of trouble that can happen even with foreclosures, tax sales etc. Best to buy the insurance and avoid the problems.

So can you buy title insurance for a property that you are buying at the
auction? how does this work? do all title companies provide this


Howdy Jimmy:

Insurance for a foreclosure will be a bit different. What i said is to check for liens by doing a search.You will need the cash at the auction to buy the property. The title company will not be there with you to provide the title service at that point. You may purchase the insurance after the sale. You can get then to run a title check before the sale to see what liens will be ignored after the sale and which ones will not be. Any loan that the borrower made after the 1st mortgage will be ignored after the sale. IRS and other tax liens, judgements will need to be addressed and paid off or somehow released.

This can get a bit tricky. Hard to pay for the title service and have the borrower show up and redeem the property and stop the sale. Once you have built a relationship with a title company they can show you shortcuts and maye even help you out.


Are you sure that the 1st mortgage will survive at Tax auctions? I know that the IRS, HOA, Tax, mechanics, child support liens will survive. But I am not sure about the 1st mortgage. The lender gets notified, he/she or they have a choice to step in and retake the property after paying taxes. Correct me, if I am wrong.

Jimmy Joe

Howdy Jimmy Joe:

I am getting misquoted a lot in this post. I did not mention 1st mortgage surviving a tax lien. I was talking about mortgage foreclosures and mentioned other liens including tax liens. It can get confusing even for the attorneys and pros. Hire some legal help or a title company to insure these or have a title company or other qualified person to search the title so you know what you are buying. That was the main idea behind the post in the first place in trying to help explain the foreclosure process.

Thanks for all the input guys. I have learned more than expected as I always do. I love this place. I get my questions answered even before I ask. Keeps me coming back to learn more.