Pre-foreclosure & Wholesale. Is it too late??

5 Replies

Owner calls you (wholesaler) about their property, literally, the day before the tax auction. What do you do? Is there still time? I’m in Texas btw.

@Brittany Adams

Assuming it's a trust deed, there might be a process available to speak with the trustee and let them know that a potential sale might take place and to hold off the auction. But, it better be cash and quick. Texas doesn't mess around with these things.

If it's a shortsale, it's not going to happen. They bank would require that the property be listed on the local MLS and there isn't enough time for a shortsale in Texas.

@Brittany Adams

Someone just has to pay off the taxes.

If the owner is truly motivated to sell, they need to talk to the tax assessor and let them know that they have a buyer. The wholesaler contract might be enough convince them.

Otherwise, you can let it go to auction and buy it there.

Essentially, there are four options for a homeowner to stop a tax auction:

1. Establish a repayment plan with the tax assessor.

2. Seniors can apply for a tax deferral.

3. Get a tax loan.

4. File for bankruptcy to tie it up in the courts.

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