Home Buying in Houston>Question Details

bsk969, Other/Just Looking in Houston, TX

What happens to junior liens on foreclosed homes in Texas?

Asked by bsk969, Houston, TX Tue Oct 2, 2012

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This is yet another reason why foreclosures are best suited for investors. If the title cannot be cleared (or if there's a considerable delay), it's simply on to the next project ... as opposed to the buyer who plans to occupy the home, spends considerable time waiting for the legal process to run its course, only to be disappointed time after time, as these obstacles contiually emerge. With so many outstanding properties available at such great prices, foreclosures (and short sales, as well) are not at the top of my list for buyers ... they never have been.

As noted in the other excellent replies, after taxes are paid, the senior lien is addressed. Should there be any remaining funds, the junior liens get the crumbs. As often as not (and likely more so) those lienholders end up with little or nothing.

Al Geffon
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al@algeffon.com
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1 vote Thank Flag Link Wed Oct 3, 2012
Property taxes have the first right to money available, then liens. As a buyer, you need to be sure that all liens have been paid, because if you buy the house you buy the lien.
1 vote Thank Flag Link Tue Oct 2, 2012
Each situation stands alone however no title can pass till entire property is cleared of liens. It depends on what you consider as jr. liens ? Contractor ? Equity line of credit ?

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0 votes Thank Flag Link Tue Oct 2, 2012
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