Katy Real Estate News - The Difference Between Bank and Tax Foreclosures (Buying Them in Texas)

Katy Real Estate News - The Difference Between Bank and Tax Foreclosures (Buying Them in Texas)

 By Realtor - Tim Sojka (shop for a foreclosed home online at www.Search-Katy-Homes.com) 

Several people ask me the difference between the bank foreclosures and tax foreclosures.  I have highlighted some of the differences below.  (Note - These rules apply in Texas and may be different in your state - also I do not guarantee this information - as it can change).

The Advantages of Bank Foreclosures - In Texas, at least the key difference between tax foreclosures and bank foreclosures is a redemption period.  When you buy a home at a bank foreclosure you can literally sell the property within days (there are times when this is not the case - but it is a good general rule - still investigate this for yourself).  How soon they sell is generally based on the price you want to sell it for and the skill of your realtor.  Also, the advantage of a bank foreclosure is you generally get a pretty clear title.

The Ups and Downs of Tax Foreclosures - In Texas, you can usually not, sell property you buy at a tax foreclosure right away.  This is a big disadvantage for people who want to buy and flip property.  The person who owned the property before the tax foreclosure has a period of time that they can buy the property back (usually sometime between 6 months and four years).  Now the person who buys the property back has to pay you a hefty interest rate of 25%.  This can be a nice return on your investment. 

So bank foreclosures offer you clearer title and usually a quicker turn around period than a tax foreclosure - why would any one ever buy a tax foreclosure?  The honest truth is you can usually by a tax foreclosure for less (sometimes a lot less than a bank foreclosure) - they just come with more challenges.

Experienced investors can easily navigate both (if you are not experienced make sure your realtor or advisor is).

If you would like more information about buying or selling a home contact Tim at 713-822-2162 or shop for a West Houston or Katy home at www.Search-Katy-Homes.com 

For more information about Katy or West Houston Texas or the beautiful new homes within the confines contact realtor Tim Sojka at 713-822-2152. To shop for a home online go to www.Search-Katy-Homes.com . To find out the value of your home go to www.seetimsell.com  

All information posted is the intellectual property of Timothy Sojka and cannot be republished or used without his written consent