Mortgage foreclosures in Harris county and Montgomerry county texas
HI All,
I am looking forward to buy mortgage foreclosure properties in Harris county and Montgomerry county texas. I have been to the auction house and didn't see things very organised unlike tax foreclosures. i would like to understand from experts who have won few houses and your experience in handling them. i have got a list from foreclosure websites and working on running title search on few of them for now. let me know what are your best experiences and strategies and what to expect on the purchase price vs ARV.
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
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Unlike tax auctions, mortgage auctions convey clear title. Most properties you have on your list will be removed and saved from foreclosure.
Thanks Eliot Elias for the reply. We still see quiet a good number of properties in mortgage foreclosure and it is a bit unorganised over there in harris county. what would be the max price investors bid on properties in trustee sale .. is it 70% of the ARV ? do investors go beyond this during bidding in general ?
Quote from @Arjun Epu:
Thanks Eliot Elias for the reply. We still see quiet a good number of properties in mortgage foreclosure and it is a bit unorganised over there in harris county. what would be the max price investors bid on properties in trustee sale .. is it 70% of the ARV ? do investors go beyond this during bidding in general ?
It all depends Arjun. I'm seeing an average of 67% in my local county in So.Cal. however, some end up being bid higher. One big difference can be whether its an investor looking for a quick cash deal to turn it around and re sell it, or if they are looking for a rental and can pay a little more, or if someone has the cash to buy as a primary residence. I've helped someone use a private money loan to purchase, 80% of value, to then refi to pay back the private lender and take a traditional mortgage. They still bought the property with a $100k equity even at 80% of the property value, so it can all depend.
The problem is that you do not know the condition of the house. You can not see the inside of the house. The outside could look great and then the house is gutted on the inside. OR it could look great if you peek in the windows(I would not suggest that, the homeowner could still be living there and call the police on you), but when the people get foreclosed on maybe they take the air conditioner with them. Maybe they take some or all of the cabinets. Maybe they pour concrete down the toilet.
That is your risk buying at the foreclosure sale. You just don't know what the condition that the house might be in when you take possession of it.
The other thing is that you dont know WHEN you might get possession of the house. The people in the house might have to be evicted. AND THEN they might do damage to the house. Something to think about.