The most dangerous way to buy Austin real estate may be the most potentially profitable; seriously high risk and potentially high reward! Buying an Austin home at auction (foreclosure sales) is an admired form of real estate investment, but it contains traps for the misguided and uninformed.
Two Types of Foreclosures in Texas
Texas law provides for two types of foreclosures:
- Judicial – i.e., through the courts pursuant to a judge’s order
- Non-judicial – “on the courthouse steps”, without any involvement by the courts
Judicial foreclosures are held in court presided by a Judge and non-judicial foreclosures are essentially an auction conducted by a Trustee in an open forum.
Buying Homes at Auction in Travis County – When and Where?
Non-judicial foreclosure sales are held on the first Tuesday of every month between the hours of 10:00 a.m. and 4:00 p.m. at the location determined by the commissioners court of the county in which the property is located (Texas Property Code Sec. 51.002). Notices of foreclosure sales must be filed with the county clerk and posted (usually on a bulletin board in the lobby of the courthouse) at least 21 calendar days prior to the intended foreclosure date. These notices are entitled “Notice of Trustee’s Sale” or “Notice of Substitute Trustee’s Sale.” They provide information about the debt, the legal description of the property, and designate a 4 hour period during which the sale will be held. In larger metropolitan areas there may be a foreclosure listing service and in Travis County the Tax Assessor publishes a List of Tax Sales.
Is Buying a Foreclosure at Auction Right for Me?
Check out our post, Buying a Foreclosure at Auction? Better Do These 8 Things First, and read exactly what the foreclosure buying process entails. Have questions? Email us at info@11OaksRealty.com.