Texas lenders protect their mortgage-loan investments through the foreclosure process. When a home owner with a loan defaults, the lender gives notice and then advertises a foreclosure sale. The lender’s trustee then sells Texas foreclosures at the county courthouse. Buyers use the listings to find foreclosed homes in Texas. They then buy the foreclosures by placing the highest bid at the public foreclosure sale.
Find Texas foreclosure listings. This can be quite a bit more difficult than in other states. Most states require a newspaper advertisement for foreclosure notices. Texas does not require this. Instead, the lender gives notice to the county court clerk. The foreclosure listings are posted there, which is typically the county courthouse. However, this presents a problem if you want to look statewide for Texas foreclosures. What you can try to do is call each county clerk and ask if they have a list of foreclosure auctions that you can order.
Also note that, in some cases, you might still see a foreclosure notice in a newspaper. Check newspapers by county to see if you can find listings in the event that you cannot purchase a list from a count clerk through the mail. You should also check county websites to see if a county provides foreclosure listings online.
Use the foreclosure notices to determine the schedule for individual foreclosure sales and the address and amount due on each foreclosure. The lender will generally bid that amount, so you should plan to bid higher than that if you want to buy foreclosed homes in Texas.
Find out the payment method for individual foreclosures by looking at the listings. For example, some sales are “cash only” auctions. Others may have more lenient terms.
Prepare the necessary money for bidding and then buying a foreclosed property at auction. The amount you need depends on your maximum bid. In order to compute this figure, you may wish to visit a foreclosed property and get as much information as possible about its fair market value. This will necessarily be an estimate, but the point is to set a maximum bid below the market value of the foreclosure.
Go to the auction (at the county courthouse) with the necessary bid amount. Buy a Texas foreclosure by placing the highest bid and submitting payment according to the instructions for that particular property.
Get a Texas property deed from the lender’s trustee. As with all states, deeds are very important documents because they establish ownership to real estate. You need to file this deed with the county clerk in the county of the Texas foreclosure that you buy. The county clerk serves as the recorder of deeds in the state of Texas. File as soon as possible to protect your interest in the property.
Foreclosure.com: Texas Laws on Foreclosure