RULE OF THUMB NEVER PURCHASE DIRECT ANY OF FOLLOWING:
Bank, Builder, For sale by owner, listing agent
Always problems majority of time best obtain your own buyers agent
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Very simply.. YES.. check out Ute's and my response here:
I've not known for HOA's to immediately foreclose in the same year; but I've seen numerous HOA foreclosure happen right here on our courthouse steps on the first Tues. of the month.... more
Hello Eric. The HOA will have to first put a lien on your house and I don't know what the process is for that in TX, but you'll have to be notified. Once they have a lien on the house, they can theoretically foreclose, but the cost of the foreclosure is most likely so high that it would not make sense to go through it just to collect one year's worth of HOA fees. However, I have heard of people losing their house because the HOA foreclosed collecting a relatively small amount. Whether the HOA can benefit from a foreclosure will of course depend on how much equity you have in the home since they'd get house with the existing loan and they'd have to sell it to recover their cost, which only makes economic sense if the house is worth more than what's owed on it. You should check with a TX attorney concerning the details of foreclosure in your state. Good luck to you.... more
Pre-foreclosure or "short sale" properties as they are called are subject to bank approval, subject to multiple offers coming in from other buyers and generally (but not always) are sold on an as-is basis.
Watch out for the amount of time it will take to get an answer from the bank. Watch out for other buyers who out bid you in the process (submitting their offers even long after you've submitted yours). Watch out for falling in love with a property you may not be likely to get. Watch out for tying up an escrow deposit on a property you don't control. Watch out for the bank not paying some of the traditional closing costs that seller's pay (but you don't have all the dumb fees in Texas that we have in Florida so you may not have as many of those issues).
You can get a list of homes from a knowledgeable Realtor in your immediate area and you can utilize that Realtor's experience to help you through the negotiation and communication process with the bank and to keep you from tying up that escrow deposit.
You will have the opportunity to have the property inspected and appraised prior to closing.
Your first step is to get a lender letter of pre-approval as ALL short sales and foreclosure sales (banks) will require that you be pre-qualified or show proof of funds before they execute a contract of sale with you -so just get this out of the way early.
Any list you buy will be old, don't waste your time. The banks are working directly with Realtors to move these properties out and that's your best resource in this process bar none.
I miss Houston, lived there 27 years. Good luck, hope you get a great home and a great value,... more
Your contract should stand. Contract law varies state to state, but the typical way it works in my understanding is that your contract would have precedence over a buy sell agreement that could happen in the future. They might offer to buy you out, but I think they have to accept your lease agreement and simply take over the previous landlord's position (ie get all the benefits like rent, but also all the duties like the lost possession rights they handed over to you until the lease end date).
Typically you can find out information about the mortgagee at the county courthouse and perhaps find a way to contact the bank and see if they would be interested. If it is owned by the courts as you say, ask when the auction will be and see if it will be priced at a point where you'd like to bid. Act fast and good luck!
Broker, CRS, GRI, ePro
Raving Real Estate
Laramie, WY 82070... more
There are listing agents that specialize in LISTING foreclosures. They represent BANKS not consumers. As a buyer, you would be served best by an agent that will show you homes that are for sale by banks AND by Motivated Sellers. - An agent that has experience and skill negotiating BOTH types of sellers.
Most foreclosures are in worse condition and have higher list prices than equivalent motivated owner homes. This is why you should want to compare regular listings with Bank REO's. If you look only at Bank homes, you are likely to overpay.
I have provided a link to the Sacramento Real Estate Exchange Group below.... more
The benefits of expanding your home search to include FSBOs and foreclosures are that you have more options. If you are interested in a FSBO and want representation have your Realtor contact the FSBO and inquire if they are willing to work with Realtors. The majority of time the FSBOs are willing to work with Realtors. The reason why they are selling their property as a FSBO is because they think they can save themselves some money. It rarely works out this way. Foreclosures are being sold 'AS IS' meaning the bank/seller of the property is not going to make any repairs to the property. Sometimes the repairs needs are paint and carpet. Other times the repairs needed are much more substantial. The bank/seller does not work on the weekends or after 5 pm during the week. Thus the response time from the seller is much longer than from a seller of a home on the resale market.... more