Yep, I’m a newbie. I was going to try and buy my first tax forclosure property at next August auction until I found out about the Certificate of Eligibility that I needed to bid at the auction. I’m gonna get it , just not in time for this auction. Anyway, I was looking at a house to bid on, can’t bid, so I was going to go to the front door and talk to the owner, if possible and see if he or she would sell to me. Like offer to pay the taxes and put a couple of thousands dollars in their pocket. Anybody done this before? Anybody know of some contracts to use in TX. This would also take care of the two yr. redemption peroid.
I’m thinking of the same thing in Denton, and I have done a little reserch. Word to the wise…
Get ahold of the apraisal district for your county. If it’s like mine, they can help you find out about any mortgages or leans against the house. This is very importatn to you. The government is the only entity that can take the property and leave the banks out in the cold. If you just buy the house from the owner, expect some phone calls from a bank, and if you can’t afford to pay the bank, expect a nasty forclosure, and a lighter pocket book.
If the person owes $50,000 on a $200,000 house, and you pay $15,000 for the taxes, and another 5 grand in his pocket, you have invested $70k on a 200k house. Not bad. Just make sure you can pay off the bank. And hope the person doesn’t relize what you are trying to do, and get smart enough to just get a home equity loan.
And in closing, if this venture does work out for you, I would not go up to the house. I’m one of those gun-toating Texans myself that gives us all a bad rap. The only difference is that the home owner (who already knows he is fixing to lose his house) might not use as much disgression as you or I would.
But best of luck to you. I hope you will email me, and we can talk a little more. I live in Dallas, and I am a little familiar as to how all of this stuff works!
Lethul1, thanks for the reply. Actually, the house is on the tax roll for about 40,000 with about 5,000 in back taxes owed. It’s a small brick house in dire need of clean up and paint. As far as the inside,thats a chance we all take when bidding on these. As far as any mortgage or other leins, I understand that the lawyers who do the paperwork for the taxing entity that is forclosing is supposed to do, by law, a search to notify any lein holder as to give them a chance to get their property back. Does this sound right? What I have seen in the legal section in the paper is something like this “TexasCityISD vs. JohnDoe in such and such court” and then Iv’e seen “TexasCityISD vs. JohnDoe,ABC Mortgage,ABC Pool co. in such and such court”. See where one has leins and one doesn’t? Like I said, thats the way I understand it but I could be wrong!! Can you tell me if there is any contract forms a person could use to buy the “Right of Redemption” from the person who lost their home to a tax forclosure. This house happened to be HS as a lot of the ones I have seen. Thanks for the gun toting advise, I think I will send a letter If I take that route.
Well, it sounds as if maybe your county does a little more work for you than mine does. As far as the “right of redemption”, I’m sure there is something there for you. My advice to you now, is even if you can’t bid, go to an auction and watch. I know the one here is conducted by the sherrif, and the attorney responsible for handeling the claims. That attorney is a great person for you to talk to.
I do know this… If the law suit is with a government entity (such as Texas City ISD vs…) the county takes the house with no leans attached. The bank is out of luck. If they inform the bank they are taking the house, it is more than likely so the bank has a chance to be at the auction and buy it back.
Therefor, if you get the house before the auction, you might still have mortgages to contend with. I think you and I are barking up the same tree. You should really email me, so that we can exchange numbers and talk. I’ll give you mine, if it makes you more comfortable. Just send me a private email adress to send it to. pete_otter@msn.com