Whats the difference between a Tax Deed Auction and a foreclosure?
A Tax Deed Auction is not the same thing as a foreclosure. A foreclosure occurs when the homeowner stops paying his or her mortgage. In this case, the bank will try to sell the home in a traditional manner or put it up for auction. Although this method can be less expensive than purchasing a new home, typically the minimum bid is the amount the homeowner owes on their mortgage, which can be a little or a lot of money. When to get legal advice If you are considering purchasing a home through a Tax Deed Auction, you should consult with a lawyer so that you are aware of all of the rules and regulations your state has in regards to the auction process. Some states have a waiting period after the auction is complete to allow other bidders to make a late bid. In Texas, this period of time is six months, during which time, if the homeowner comes up with the owed taxes, then they are able to reclaim their home and you receive your money back for your auction purchase. Make sure you understand
