Buying properties at the Harris County Constable's Auction

Buying properties at the Harris County Constable's Auction

Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes

Hi All,

I'm looking to get some blanks filled in and share the bit of information I have. So I want to get more into buying properties at the Harris County Constable's Auction. This event...um...circus takes place every first Tuesday of the month at the Family Law Center on Congress.

These auctions are primarily for taxes from the various school districts and other municipalities.

So here is what I do...and I'm being very open throated here so go easy on me...lol.

I pick out properties on the Linebarger website www.publicans.com that meet my criteria. Minimum bid amount, number of bedrooms, location, year it was foreclosed on. Not exactly in that order of course and the year is important to me because the older the foreclosure I figure the less chance of the previous owners making a last minute deal which would cause the sale to be canceled.

Then I google the address to get an idea of what the property looks like and the location. You'd be surprised how many houses have become vacant lots or have been torn down. But...but...I have also found some vacant lots with very nice homes on them that the taxing districts were not aware of.

Next I pull as many records as I have access to online. Tax records, payment of taxes, MERS (Mortgage Electronic Registration System..or something like that) it doesn't always return a mortgage but sometimes it does, Courthousedirect.com to see what they have by way of liens and other civil filings, and also the Clerk of Courts - I search the property and the owner.

Somewhere in between all this...I can't resist and I drive out to the location and see what I can see.

If the property is still available a week before the sale I start putting my money together. Getting cashiers checks and cash. I've learned on this when I forgot the Monday before the auction was a holiday and had to spend the whole weekend hitting up ATMS and paying fees to Western Union to transfer my own money to me to get the cash. But hey, I was the successful bidder that time and got the property I wanted.

If it's a condo, I call the HOA and try to social engineer as much information as humanly possible from them. One time all my talking got the property pulled at the last minute.

I guess I should have known when the HOA member said "What auction?" and "Who told you that" this was not going to come out in my favor. They quickly paid the tax and it got pulled that day.

I've even paid for a title search once only to find out there was no new information than what I already had. So that is now like a last option, as you could pay for the title search and then it get's pulled.

So the part I would like someone to fill in the blank for me on is this. How do I determine "first lien position" if none of the steps I'm doing shows a mortgage. Believe it or not, I've only gone to the court house to research just a couple of times and didn't get the impression I'd really gotten everything.

Okay, thanks for reading and I look forward to learning new information.

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Professional · Wichita Falls, TX · Member since 2012 · 124 posts · 70 votes
13y

Eliza Blue Hey, I am also in Texas and invest in tax foreclosures. You can check the suit brought against the homeowner(s) by the taxing entity. This suit should be filed with the District Clerk, at least that is what it is called here in Wichita County. The suit should (but not always) identify any mortgage lien holders. It probably will not identify other liens like federal or city. There are also services that pull liens of all kinds for a small fee. You may call a local title company to find out what they use, or make a deal with them to sell you that information only. I use Stewart Title, and they will email me a list of liens. It only takes them 10 minutes to run the names through their system.

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  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Hey Eliza Blue welcome to BiggerPockets! I wish I could be of some help, but this is far over my head! Hopefully some Houston people will pop in and offer some advice.

    Other than that, what's your story?

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Hi again Brandon,

    I'm a broker and an investor, looking to learn from the pros. I've pretty much maxed out on getting a decent mortgage due to number of properties, so the next option is cash. Mine at the moment...but maybe also looking to leverage with some other investors...that would be great!

  • Brandon TurnerPro Member
    Investor · Maui, HI · Member since 2009 · 13k+ posts · 3k+ votes
    13y

    Hey Eliza Blue yeah, I've had the same problem with the maxing out. Not sure if this will help you or not, but feel free to browse it!

    http://www.biggerpockets.com/renewsblog/2012/06/03/strategy-when-the-bank-says-no/

  • Flipper · Irvine, CA · Member since 2013 · 349 posts · 45 votes
    13y

    Hi Eliza Blue, good for you doing your due diligence before purchasing at trustee sales. I'm not familiar with Houston but here in Orange County, there is an county official Recorder website. I do very similar things you do including finding the 1st lien position but our county Recorders website always shows a mortgage.

    I'm sorry I don't really have an answer to your question but it doesn't make sense when an official county recorder doesn't have a record of a property's mortgage and loan info.

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Brandon Turner (See I'm learning already...lol) Thank you and I'm taking a look at the link you provided now.

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Thank you Jimmy Hong, I believe that is the equivalent to our Clerk of Courts here in Harris County, TX, which is online. But...I have found somethings were not there and then you cannot see the actual document only the notation like "WD" or LN" for Warranty Deed or Lein or "LR" which is I think Lein Release.

    On the site www.courthousedirect.com you can get a subscription but you only pay when you download, not to join the site. You can actually pull the document and print the copy. It is country wide and the cost is like $1.25 a page. I've used it and their pretty accurate.

    But I will say one property I purchased at the auction had the buyer wrong....it was not me. Well that struck terror because I've heard the horror stories about folks actually buying the lot next door to the one they thought they were bidding on.

    Well it turned out to be incorrect I bought the property I wanted, but for some reason the law firm who handles the recording made a mistake. And believe me the folks at CHD let it be known that they only report what the court records.

    I did receive my deed and it is correct, so I 'm not sure what happened there.

  • Eric TaitPro Member
    Investor · Houston, TX · Member since 2013 · 314 posts · 146 votes
    13y

    There is a company here in Houston called "real acquisitions" that has a computer program that will do alot of this work for you, give you comps, all the information recorded at the courthouse etc... in one portal. I have not used them personally, as I am focusing my investing internationally right now, but they seem to be well worth the subscription costs. You can also search many other types of properties as well.
    https://www.realacquisitions.com/

    I hope this helps.

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Eric Tait Thanks for the link. I will check it out definitely. I have to say as a Realtor it is soooo hard to ask someone else to run comps for me. My agents and I also to Broker Price Opinions for the banks and we know how in just looking at previous comps not all realtors are giving due diligence to the comps they pull.

    But as we all know time is money...right?

  • Eric TaitPro Member
    Investor · Houston, TX · Member since 2013 · 314 posts · 146 votes
    13y

    This system actually has MLS data embedded if I'm not mistaken, so you will actually be pulling your own comps.

  • Investor · Cypress, TX · Member since 2013 · 403 posts · 59 votes
    13y

    I am on the Real Aquisitions email list. I met a couple of sales guys at a seminar I went to. Next time they have a free workshop I'm going to go to it.

  • Realtor · Houston, TX · Member since 2013 · 128 posts · 27 votes
    13y

    Eliza, I use Real Acquisitions, if you have questions about it, feel free to contact me. I can also put you in touch with someone who's probably one of the most experienced in Houston when it comes to foreclosures.

    ...and I don't work for Real Acquisitions nor do I get any type of compensation from them. :)

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Eric Tait Thanks again I did go on and look around. It seems like a wealth of information.

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Ben Hughes Yes please keep us posted. I may join you.

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Al Bunch Thank you Al, yes please do pm me the contact. I will contact you if I have any questions. I did log on and got the free 50 addresses (Eric Tait thank you for that) I just wish I'd given then another zip code that I was really interested in...lol.

  • Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    13y
  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Steve Babiak Thanks a million...great information!

  • Real Estate Broker · Cypress, TX · Member since 2013 · 822 posts · 468 votes
    13y

    Texas is a non-disclosure state, so I've been told any of those comp sites are using fancy algorithms to come up with their numbers, and that the only thing you can really trust is the MLS.

    Eliza, how come if you're a broker you can't pull your own comps? I would think that would be a huge advantage for you.

    I'll be moving to Houston end of year - we should stay in touch.

  • Professional · Wichita Falls, TX · Member since 2012 · 124 posts · 70 votes
    13y

    Eliza Blue Hey, I am also in Texas and invest in tax foreclosures. You can check the suit brought against the homeowner(s) by the taxing entity. This suit should be filed with the District Clerk, at least that is what it is called here in Wichita County. The suit should (but not always) identify any mortgage lien holders. It probably will not identify other liens like federal or city. There are also services that pull liens of all kinds for a small fee. You may call a local title company to find out what they use, or make a deal with them to sell you that information only. I use Stewart Title, and they will email me a list of liens. It only takes them 10 minutes to run the names through their system.

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Sharon Hiebing So sorry I just saw your post. Yes you are correct I always pull my own comps before bidding or submitting offers for clients. My post was to share what tools I use and to fill in some blanks I still have.

    For example getting a good handle (often in short notice) on whether or not there may a mortgage or other existing liens. MERS is one source, but not all mortgages can be found there.

    And as an investor I really don't want to pay a title company to pull title unless I'm absolutely sure I'm going to bid. This can be tricky because it takes time to get the title from the plant, so you need about a week. But then the property could get pulled the day of the auction if the owner makes payment arrangements. So then, you'd just be out of the money you spent on the title.

    I was asking about ways to determine first and second position liens without spending money.

    I was doing my homework on a cute little condo that actual sold at the past auction for the taxes due. Whomever bought it did not do their homework (unless maybe it was the bank).

    I found out that the property had a $49k mortgage, and that the sneaky HOA's were waiting until it went to auction and then they were going to file a $20k repair lien they've been sitting on, against the new owners.

    The property is encumbered right off the bat at $79k plus the cost of the bid itself...I don't know what it went for but it started at $9k. PLUS I found out there were taxes outside the judgment years of another $3500.

    All this and the comps come in at $39k....I passed...lol. It will eventually show back up at the auction or as a bank foreclosure and I may make a run at it then. Because as an REO all junior liens would have been dealt with.

    I'm not a pro at this and am just finding my way, and trying to learn without too too much trial and error...so if anyone has any input please please please chime in.

    Thanks Sharon and yes we need to meet up and do coffee or something.

  • Real Estate Broker · Houston, TX · Member since 2013 · 187 posts · 111 votes
    13y

    Josh James Hey Josh that is good information. I've always done business with Startex and those folks are very helpful. BUT...but they still want to get paid. They did give me somewhat of a discount for just the lien information, but it was still like $150 maybe a little less.

    I'm pretty frugal...lol...so for a property that may get pulled the morning of..I couldn't do it.

    One thing I use as an indicator is when the property was foreclosed on. I usually pass on anything that the final judgment was too recent, because I figure those folks are probably more likely to come back. But if the initial delinquency was 4-5 years ago, to me that 4-5 years they ignored it and shows a greater chance they've abandoned the property.

    It's really all like a big puzzle to me, putting all the pieces together and finding the clues...lol. I love this stuff!!! (sorry...it's the caffeine)

  • Investor · Houston, TX · Member since 2015 · 20 posts · 3 votes
    8y

    Hi guys, I also do purchases from auctions here in Houston. One problem is that many times there is a squatter that is hard to force out.  Any thoughts on remedying?

  • Houston, TX · Member since 2016 · 8 posts · 2 votes
    8y

    hi karen, maybe pay them a few bucks to relocate, just may turn a rude or ugly situation into an act of kindness, this is only my opinion.

  • Member since 2019 · 2 posts · 0 votes
    7y

    Good evening. My mother bought a property at a constable's tax auction. It was based on HOA judgements. The mortgage company had a trustee sale the same day. My mother was told the constable would file the deed. Come to find out they trustee filed the deed. My mother is now in a battle. The third party purchaser is claiming the house is his. He does state the tax lien is still owed, that my mother purchased it and he will pay her. However, what I'm reading seems to state that my mother owns the home.

    I’m assuming the mortgage should still be owed. Is it correct that he owns it now or does my mother? 

  • Member since 2019 · 2 posts · 0 votes
    7y

    This is Texas.

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