Good morning, Bigger Pockets!!!
What will happen to second mortgage and HOA, ANY OTHER liens after Auction of the property in Courthouse steps in State of Texas?
In REO property transactions, all the previous liens will be wiped away and the property will have clear title.
But in the situation of Auction on Court house steps, is winning bidder still responsible for paying second mortgage, HOA liens, pending property taxes etc?
I am interested to start educating myself and eventually start buying properties in Courthouse auctions in Harris County, Texas. Please point me in to any books that can cover this topic. Thank you!!!
To be clear, on a REO auction/transaction no previous liens are "wiped away". If any existed after the foreclosure auction, the bank had to pay them off. Please sit down with a local RE attorney, as foreclosure laws are local, to find out what survivors, and what doesn't, after a foreclosure auction. But so you know, property taxes Always survive, HOA's may or may not, and upon differing conditions, gov't liens may or may not, junior private debts/mortgages get wiped out if properly served.