Manvel, TX · Member since 2014 · 309 posts · 127 votes
I have been searching on the forums for quite awhile today, but no luck finding the info I am looking for. Somewhere on Biggerpockets I learned that you should never use estimates when real numbers are available, and that has been our goal when assessing properties. However, in this case, I can't even find estimates.
If we buy a bank foreclosure property at auction (in Houston/Harris County, Texas), what can we expect to pay in addition to the purchase price and the auction fee? Will a title company give us an amount we would be charged for a property costing $X? Is a title company even involved when you purchase a property at auction? What about realtor fees? Are there any?
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
@Leigh Ann Smith - there are two different types of foreclosure auctions, so maybe you can clarify which type you are inquiring about. Those two types would be: first, from a site like auction.com or hubzu.com; and the second would be more commonly called courthouse steps. The fees definitely will differ between those.
For courthouse steps fees, the sheriff's dept should be able to give an idea if it's a sheriff sale; the trustee would have that info if a trustee sale.
In my county's sheriff sales, the costs are all taken from the bid amount as well as liens that are to be paid ahead of the mortgage lien, then the mortgage lien gets paid, and then any remaining funds to lien holders in order of priority, and any overage still left goes to the borrower. All of that comes from the bid amount in my county so no added costs.
Investor · Boca Raton, FL · Member since 2012 · 1k+ posts · 1k+ votes
12y
Hi Leigh Ann,
Every state is different, but generally you are only responsible for paying the Doc Stamps, the Clerk's Fee, Publication costs and a few other misc fees. You can expect these costs to total about 2% of the bid price.
A title company is not involved in the transaction, but it is highly advisable to get a thorough title search done in advance to warn of any other liens, etc. Typically they run about $100. There are no realtor fees, unless you buy through Auction.com or another online auction site but these are not Trustee sales, they are merely acting as a realtor on behalf of the bank in which case you have to pay an additional 5% on top of bid price.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
12y
Agreed, there is no "closing". If being done by a govt agency, the info should be available on their website, or by calling them. If being done by a trustee, a call to the trustee, and the county offices, should answer the question. Definitely get a title search and title ins commitment.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
@Leigh Ann Smith - there are two different types of foreclosure auctions, so maybe you can clarify which type you are inquiring about. Those two types would be: first, from a site like auction.com or hubzu.com; and the second would be more commonly called courthouse steps. The fees definitely will differ between those.
For courthouse steps fees, the sheriff's dept should be able to give an idea if it's a sheriff sale; the trustee would have that info if a trustee sale.
In my county's sheriff sales, the costs are all taken from the bid amount as well as liens that are to be paid ahead of the mortgage lien, then the mortgage lien gets paid, and then any remaining funds to lien holders in order of priority, and any overage still left goes to the borrower. All of that comes from the bid amount in my county so no added costs.