Purchasing at the sheriffs sale

[Richard Rabe]

Hi everyone
Ok got a question for those of you who have purchased foreclosures. What process do you use before you go to the sheriffs sale and bid on a property. This is what I do Is there anything else I should be doing Like Title searches and so on If so how do you do it with out it costing the fee for a title search.
I Usually get my list each week go through and run prices for the area Im looking at. I find the propeties that would make sence for me to purchase.
Next I go and visit the property take pictures make notes on it . Then I go back and evaluate my notes and pictures.
And finally I,m off to the sale.
Is there anything I,m Missing. Thank you for your help.

[Ryan Webber]

I always check for liens on foreclosures at the county clerk's office. I do this for all liens if I am buying it pre-foreclosure and for tax liens if I am buying at the foreclosure. If the foreclosing lender gives proper notification to the IRS (I think it has to be 90 days before the foreclosure), then the IRS tax lien will fall off but the IRS has 180 days to redeem it from you (buy it back from you). I don't deal with state tax liens much here in Texas (there's no state income tax) so I am not sure the procedures for them. I always just factor them in the price if I do see them. I also factor in paying the county property taxes (ad valorem taxes) for the current and the last year.

You absolutely can buy a second or third lien. Any lien holder can foreclose so I would do my research and make sure you are looking at the first lien. Any non-tax liens recorded after the foreclosing lien will fall off (i.e. mechanics liens, second liens, etc.), but any non-released liens filed before the foreclosing lien will stay on the title. The foreclosing lien holder gives no guarantee of title at foreclosure. That's why you need to research the public records.