Here are some common questions...
1) What is the guy behind the podium doing?
They are auctioning off properties due to unpaid taxes. The other trustees are auctioning off properties for missed mortgage payments.
2) What are the other differences between the two?
The Sheriff auctions, aka tax sales, have a good-sized crowd; however, they typically have only 5-10% of the number of posted properties that the private lender side, aka Bank’s sales, have. You have to register in advance, cannot have delinquent local property taxes and must pay by the end of the day or the sheriffs say that can come after you. The Tax sales have favorable lien elimination laws but tend to have older and smaller properties.
3) What do I have to do to bid?
Make a monetary bid that is audible to the trustee. Bidders generally brings multiple Cashier’s checks so that they can answer any anticipated bid. Business checking accounts sometimes offer free cashier’s checks, while some others charge $10 each. Many investors make the checks out to themselves and then sign them over to the trustee. Always make sure you are getting the property with the correct legal description before handing over your checks. Our gold book does not guarantee the accuracy of the data. For that matter, neither does a title company doing a $120 title search.
4) Who is the person standing next to the trustee and calling out numbers?
The ones in gold are with RexReport. Our researchers are there in the capacity of reporters. We also help identify which properties we think are being sold. We do this by communicating the number of the property that corresponds with the number in the book/report for that county. The book has to be the correct year, month and issue. Always make sure you are purchasing the property you want by confirming the legal description of the auctioning property with that of the respective county courthouse. We are there as a private company to help our subscribers be successful.
5) And when does your list come out?
Properties are posted on any business day of the month. Our reporters leap into action and usually have detailed reports online at www.RexReport.com by the end of the day or the following day. To subscribers we send out email reports regularly with the latest updates. The last day to file for the auction is 21 days before. Our hardcopy comes out the day after the deadline in Bexar and Travis. The hard copy suburban counties come out the following day, while Webb County comes out later.
6) I was following a property and the trustee never auctioned it off. What happened?
Most bank properties are not auctioned off. Only 20-35% are typically auctioned off. Homeowners take steps to save these properties or investors, such as you, buy them before the auction.
7) Is there a way to buy these properties before the auction?
Why yes there is! Our posted report is also a valuable pre-foreclosure tool. Investors use it to identify investment grade properties and then buy them pre-foreclosure. You would be buying these from the homeowners and not the banks. The banks are lenders and not owners--at least until after the auction.
8) This is interesting. What steps should I take to become more proficient at buying these properties?
We holds workshops on "How to buy Foreclosure investment properties in Texas." Contact us at (210) 733 - 4262 to find out when the next wonderful workshop is or visit us at www.rexreport.com. Come watch the monthly foreclosure auction. They are always the first Tuesday of every-month. Get close enough to a trustee to see the process.
written by - Rex Reporter - Gregg