Foreclosure Homes Houston Texas
The foreclosures in Houston, Texas take place both in court and out of court. Texas follows the easiest process of foreclosure compared to any other state and the whole process is very quick. Within three months the whole foreclosure deal is completed.
People in Houston are finding it to be a better way to buy a home in a foreclosure auction rather than the real estate market. For one it is very cheap and the second thing is the process is really quick. So it makes a foreclosure deal better than buying through the real estate market.
The foreclosure sale
In case the power of sale clause is absent in the mortgage agreement or the deed of trust, the foreclosure process takes place through the court and that is the only way out. In this process, the lender will usually file the case against the borrower so that the lender can obtain an order from the court to foreclose the property. The court takes its usual course of time and then authorizes the sale of the property by the lender. At this time the foreclosed property is auctioned in public.
Even after the foreclosure sale is authorized by the court, or if it is an out of court settlement that is being followed, the lender has to follow some steps before he actually holds the auction in public. The lender needs to send a letter to the borrower and give him a time of 20 days to pay the loan or the balance amount in order to retain the property. In a follow up the lender may post another letter to the borrower which could state the loan details and if the loan amount has been accelerated again. The second letter could have a new balance amount stated in the letter.
Property Auction
After warning the borrower about the proposed auction and giving him a time period of 20 days as a turn around time, the lender can post a notice of sale on the property provided the borrower did not respond. The lender also mails the notice of sale before handing it to the borrower.
The difference in Texas laws compared to any other state in the United States is that in Texas the lender need not advertise in the news paper for two to three weeks about the auction. He can choose to have the auction directly. This can speed up the process of foreclosure by a month at least.
The foreclosure sale takes place between 10 AM and 4 PM of the first Tuesday of every month. This is regardless of any holiday that falls on a Tuesday and the auction sale is usually held at the steps of the court house. The foreclosure sale is held like any other auction and the highest bidder gets the property. The highest bidder also has to pay the full amount in cash. The auctioneer allows time for the highest bidder to arrange for the cash and in the mean time the sale is still carried out for a secondary bidder.
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