I'm meeting a seller to sign all the paperwork to purchase her property tomorrow. The property is in Texas and I've never purchased a pre-foreclosure that is only a couple weeks away from being auctioned off. I'll also be taking this property subject to the existing financing.
Get with your attorney and make sure that the foreclosing lender is on-board. Guard against "burro-cratic" bungling as much as possible.
There is story around about a house which sold shortly before the auction sale, but lender did not notify the sheriff to withdraw the property from the auction and it was sold again at the auction. The courts had to intervene and nullify the foreclosure sale.
You may even want to send someone to the auction and make sure the auctioneer is aware that property was sold prior to the auction sale. Take (copies of) the paperwork as evidence.
Obviously you’ll have to pay the arrears and make sure there are no other liens/mtgs.
whats your question you just made a statement ?
Sorry guys I just realized I didn't actually ask anything besides explaining the current situation. I'm not familiar with foreclosure laws in Texas. And I've never bought a pre-foreclosure right before auction. I just wanted to know if there's anything different about the selling process or if I should be taking any other steps to ensure we have a smooth close on this deal.
@David Dachtera Thanks for the feedback. This was the type of answer I was looking for.
Just open escrow and close as normal.. title company will send for a reinstatement figure you put your downpayment they reinstate for you all is good.
Not sure if this will trigger the Alienation clause or not.. technically it does but that's at lenders discretion.
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