In Texas, foreclosures can either be judicial or non-judicial. Homes that are sold through a non-judicial foreclosure are typically auctioned off. REO, also known as Real Estate Owned properties are held by a bank after they have been foreclosed. REO’s are distressed properties and are usually sold below market value. Texas is a non-disclosure state, which means that financial information related to sales transactions are not public information. Foreclosure and REO properties are typically available by paid subscriptions, at the courthouse, or through an experienced real estate advisor.
There are different types of Distressed Sales:
Preforeclosures, legal notice must be given to homeowner before foreclosure Short sales, where the borrower owes more than the home is worth and the bank agrees to forgive the unpaid debt.
Public auctions, where bidders have a chance to make cash offers on pre-foreclosed properties at the county courthouse.
Bank-owned homes belong to the lender.
Pros & Con’s of buying a foreclosed home:
- Pros
- Priced below market
- Strong income returns
- Cons
- Costly repairs
- Complicated process
- Cash
- Competition
Buyers can save time, money, and reduce frustration by using our experienced team to find and purchase real estate foreclosures. Our proprietary tools as well as our real estate, tax, and construction experience can assist investors in adding profits to their business.
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