Pre-foreclosure Buying Advice

[Jeremy Peters]

I'm hoping to acquire my first rental property in 2015.  

I did some research about upcoming foreclosures in my area near Dallas, Texas.

I found a property that is scheduled for auction at the beginning of February.  I did some research and should be quite a bit of equity assuming the house is in decent condition.  I did some research and found a mechanic's lien on the house.

I just typed up a letter and dropped it in their mailbox asking them to call me so I can buy their house before it is foreclosed and auctioned.  I was sure to keep the theme of the letter that I want to help them and can put cash in their pocket fast.

I was hoping to hear any ideas or tips about how to navigate this process.  In Texas, can a mechanic's lien foreclose on a property similar to a second mortgage?

[Wayne Brooks]

Nothing wrong with trying to buy the property, but stay away from any offer to "help" as that can put in jeopardy from Fed protection laws.  As for the mechanics lien, in most jurisdictions yes, except some states protect a person's Homestead from non mortgage junior lien foreclosures.  Don't expect to be the only one knocking on their door, and "knocking on their door" will be more effective.