Sheriff's Sale in Texas

[Connor Heim]

Howdy!  I'm looking for info about how Sheriff's Sales work in Texas.  My county has foreclosure auctions the first Tuesday of each month.  The bank sends a trustee to conduct the sale.

Separately, from time to time there is a Sheriff's Sale of real estate, and those sales are to satisfy a judgment.  They are NOT bank foreclosure sales, but often one party has won a lawsuit against the owner of the property and the Sheriff forces a sale.

My question is, what happens if the real estate is NOT paid off.  If there is a mortgage against a home, and the Sheriff sells the property at auction, are you gaining only the owner's equity?  Or does the Sheriff's Sale trump a bank mortgage?    I thought that *only* tax sales would wipe out a mortgage.

Anyone have experience and care to enlighten me?  Thanks!!!

[Arnie Abramson]

Connor, there are Sheriff Sales for seized properties and Sheriff sales for delinquent taxes- which in Texas are tax deed sales and are related to taxes.  If you purchase at one of these sales in Texas it extinguishes all NON-GOVERNMENTAL liens, including any mortgages. (There is one exception but it is very rare and I have not seen one in over 20 years).  You acquire the property and are the new owner but the former owner (and anyone with an equitable interest) has the right to redeem the property but must pay you your costs plus 25% per year (not pro-rated) if they do so.  They have this right for 180 days or for 2 years if it is a homestead, has an agricultural exemption or is a severed mineral right.  Feel free to send me a PM if you have more questions as I have found that in this arena in Texas THERE ARE NO SHORT ANSWERS:)