Tuesday, April 1st on the Jefferson County Courthouse steps 82 homes are set to be auctioned to the highest bidder.
According to Texas Foreclosure Laws, Texas is a non-judicial foreclosure state. What that means is the owner of the mortgage does not have to take the borrower of the money to court to foreclosure. In Texas once a borrower, also called a grantee, is behind on their payments a letter of demand is sent to the borrower. If they are unable or fail to make payments that are owed, then a Notice of Trustee Sale is filed with the Jefferson County Clerk's Office. The notice must be filed 21 days prior to the next auction. Foreclosure actions are always held the first Tuesday of the month.
If no individual buyer bids on a home at the foreclosure sale, then the mortgage holder will "buy back" the property for the amount they are owed. Once a home is foreclosed and owned by a bank it is often referred to as an REO property. Banks and mortgage holders then list these homes for sale with local real estate agents after a market analysis is completed to determine the fair market value.
Interested in Getting the List?
The County Clerk's Office will print you one for $4. Or you can look up the information on their website. However, the list is just a start. The list gives a legal address but not the street address. You'll have to do some more research to get that. Then you'll have to research the properties true market value. The minimum bid could be higher that what the home will sell for. "How does that happen?', you ask. Well, when the borrower has taken out 100% financing and owned the home for a short period of time no equity has built up. Hence, a negative equity situation exists. The borrower owes more than the current value. That's one way. There are others.
Will All 82 Homes Be Auctioned?
Good question. The answer is, "No". Some of the homeowners will be able to make their payments prior to the sale. Others will work out arrangements with their mortgage holders. At the last foreclosure auction over 80 homes were on the chopping block, but about 50% of those did not get foreclosed.
Where Are The Foreclosures Located?
They are in neighborhoods we all know. Dowlen West has a few up for auction on April, 1. Amelia Heights, Evangeline Meadow, Glenwood, Minglewood, Caldwood Acres, Westfield Terrace, and Windermere are just a few of the communities with other homes scheduled for foreclosure. Even the high-end neighborhoods are not immune. Last month, Barrington Heights had a home foreclosed at the auction.
There's a lot to learn before buying a home on the courthouse steps. For the brave of heart, looking for a good deal, who aren't afraid of a little research, see you at the auction on Tuesday.