Houston Foreclosure Auctions

[Limey]

Anyone ever been to one?  Can you give me some scoop?  (Like where are they and what to bring)

Thanks!

[NeilT]

Real estate?  I have some vague notion that they're on the courthouse steps on the first Tuesday of each month, and that you have to have cash on hand.  I could be wrong about the date and place, but I think I'm right about the cash part.

[Limey]

Real estate?  I have some vague notion that they're on the courthouse steps on the first Tuesday of each month, and that you have to have cash on hand.  I could be wrong about the date and place, but I think I'm right about the cash part.

You are correct, thanks.  I was having trouble finding info, then I managed to dig some out of a dusty corner of the interwebs.  Full purchase price in cash required, and an atmosphere akin to a food delivery in Bakara Market.

[Bench]

I have a a vague recollection of hearing some young real estate lawyers talk about going down to the courthouse and pretend to be bidders to ensure that the client's property doesn't get sold while the client is restructuring financing with the bank. 

[chuck]

I have a a vague recollection of hearing some young real estate lawyers talk about going down to the courthouse and pretend to be bidders to ensure that the client's property doesn't get sold while the client is restructuring financing with the bank.

That would be unethical so I have to assume that you misheard.

[geezerdonk]

That would be unethical so I have to assume that you misheard.

Plus it doesn't work. Typically if there is bidding from other than the lender, the trustee will conditionally strike off the property to the successful bidder and adjourn the sale for a short time period to allow the successful bidder to tender good funds. If the successful bidder fails to do so, the trustee resumes the sale and eventually sells the property to a bona fide bidder or to the lender.

[Limey]

Plus it doesn't work. Typically if there is bidding from other than the lender, the trustee will conditionally strike off the property to the successful bidder and adjourn the sale for a short time period to allow the successful bidder to tender good funds. If the successful bidder fails to do so, the trustee resumes the sale and eventually sells the property to a bona fide bidder or to the lender.

From what my research tells me, the auctions in Houston aren't run by experienced auctioneers.  Apparently, all sorts of shenanigans go on under their noses as they haven't got a clue what they're doing.

[NeilT]

The "Auctioneer" is technically the trustee under the deed of trust, though it's probably some flunky from the bank foreclosing (unless it's a tax lien).  Because they can bid in the value of the note, they would expect to walk away with the property.  I suspect that there's no requirement that the "auction" follow any particular format.