Beginning Texas REI
This is the first posting I place. I am from South Texas and am eager to begin Investing in Real Estate. I have researched the subject thoroughly but still have a couple of questions and gaps in my knowledge about REI. My biggest obstacle is the financing, but I have an idea of how to obtain it. I just have not gotten to the point where I need the finance. Hopefully, Someone can be helpful enough to answer some questions that I have. If you are from a Texas REI, It would be perfect if you could answer these questions for me. Since Laws are different in every state.
1) If I attempt to purchase a Preforeclosure from an owner, Does the contract that I have him/her sign have to be a legal form produced by an attorney or RE agent or can I just write the contract out myself?
2) If I home is purchased at a foreclosure auction. Will all liens get wiped out. Or will I be responsible for that debt?
:-?
Hi Eddie,
First question: Depending on your intentions you have them sign an agreement, Power of Attorney, and any other agreements that pertain to your intentions. (eg. Subject to, Lease option, Land Trust and so forth) Then you go and record it.
Second question: If foreclosure is on the first loan then yes the rest get wiped out, but if foreclosure is on the second or third then you will inherit the first. This is why you always do you Due Diligence.
There is a lot of information on this site stay on it turn it into your bible and you could learn a lot.
Luck
Gonzo 8-) [ Edited by Gonzo on Date 10/07/2004 ]
if you a purchasing a prop. though the help of a realtor the realtor will draw up the contract. yes the leins will be wiped. welcome aboard.......km from tenn.
Thank You, Very much. I was kind of dissapointed at first and did not think anyone was going to respond. Thank you for your help. This has filled two big gaps. I will take your advise and treat this website as my bible.
Be sure to get a title report on any property you are very serious about buying. This will show you if the title is in good order (if not, it may take months to clear up) and what leins are on the property. Also notice property taxes. If the person has not paid thier mortgage, property taxes are likely building up and you will be responsibile for paying those even if it goes through foreclosure.
There is nothing worse than to think you are bidding on a first mortgage and later find out it was a 2nd or 3rd (these get forclosed on too, and the 1st stays in tact and you will have to pay it off!!!)
Texas has several property/school taxes to look out for on each property.
-Joe