How does acquiring a preforeclosure work in texas?

4 Replies

I would like to get started investing on real estate. Ive looked at several auctions and while they have good deals. Ive noticed is possible to approach a home owner and work something out with them before theyre foreclosed. My question is if I were to come to an agreement with a distressed home owner. whats next? Do I need to pay their loan or how is it transferred to me. Ive tried contacting foreclosure re agents and all of them looked at me like they have no idea what im talking about and the rest don't feel comfortable with anything other than dealing with a traditional listed home. BTW this is in Texas. Ive also contacted a few RE Attorneys and they want to charge 200 just to talk to me even though I don't have a deal yet.

That’s probably the best $200 you can spend. 

A preforeclosure is like any other sale.....you just buy it. 

Their loan will not be “transferred” to you. 

@Daniel Hixson Look into other types of properties rather than foreclosures and pre-foreclosures. The people in this situation are at risk of taking a hit to their credit. So, if you agree to a deal with no plan and end up with no buyers, it will put them in a very bad spot. Other than that @Wayne Brooks basically answered your question. 

Good Luck!

So I finally found a knowledgable RE agent. All the other I talked to before were confused at what I was trying to do and how I wanted to buy homes that were not listed or were in preforeclosure. He pretty much answered all my questions and has been giving me tips on what to look for. I am not looking to wholesale, I just dont think thats for me right now that im starting out. But im looking to actually buy this property homes at around 70% emv Do a bit of remodeling and reselling.

The number 1 problem with perusing pre-foreclosures in Texas is time.  The first and only public notice that a house is potentially being foreclosed can be as little as 21 days and is rarely much more than that

The number 2 problem is that many of these property owners have other liens/judgments that will only be extinguished by a foreclosure.  

So, the big players in this game have systems in place to get these deals done quickly. They have a service to scrape the information instantly from the County Clerk's Office where the public notice is recorded. They have a title company run a title search quickly and the liquid funds to get the deal closed quickly

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