Pre-Foreclosure at Sheriff’s Auction

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I’ve attended several Texas Tax Sales. One thing that I’ve noticed is all the better properties are withdrawn at the 11th hour. I’m getting a little frustrated, we do all the due diligence, drive by inspection, research owner, liens and etc. At first I thought it was homeowners scraping together funds to avoid foreclosure. Then on today’s sale I saw three properties all cleared at the last minute. I know it wasn’t a homeowner because they are deceased.

What I think is happening is investors are reaching out to the homeowners in pre-foreclosure and paying the taxes. What if I were to offer to pay the delinquent taxes and give the homeowner $10,000 cash? Anyone try this strategy or something similar?

This would be a win-win, homeowner gets cash for a property they were going to loose anyway, I get a good property at a discount price.

From my understanding, as soon as the Courthouse get the info it legally becomes public at that time.  So from the time from then to the Tax sale funny things can happen.  One town where I buy property, the mayor would get the list and contact the owners with offers.