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Different Types of Foreclosures in Dallas
By Myles Johnstone

Every state follows rules for foreclosure properties a little differently, and so wherever you search for such properties to buy, you need to know the law. Some states have judicial foreclosures, which go solely through the court system, while others have provisions for handling foreclosures out of state. If you happen to be looking for foreclosures in the Dallas area, then you are subject to Texas laws, which may provide for non-judicial foreclosures. Knowing the difference between this and the judicial processes in Texas can help you find good deals on Dallas foreclosures.

Power of Sale

Non-judicial foreclosures in Dallas can occur when the person originally borrowing money for a mortgage has a loan with a power of sale clause. This clause essentially authorizes the lender to sell the property in the event that the borrower defaults on the loan. The property is most likely to be sold at an auction at a location of the lender's choice. One of the benefits of looking for Dallas foreclosures is that if you are searching for non-judicial foreclosures, the process is likely to be over in under a month.

In the Courts

There are still plenty of Dallas foreclosures that are handled through the court system, however, and while the judicial process is longer, it's still swift in Texas. It's easy to find Dallas foreclosures if you know where to look; all properties to be auctioned through the judicial system are posted in the local newspaper for three weeks before the auction, which is specified by law. In fact, most of the time taken up in Dallas foreclosures, whether judicial or non-judicial, is due to the need to give due notice to the people living on the property, so they have a chance to correct their default status on the loan.

The Auction

In any case, for those willing to take their chances without researching properties, Dallas foreclosures are auctioned the first Tuesday of each month, regardless of holidays, at the county courthouse. In the auction process, you may be bidding against other investors, or even the original lender, trying to ensure it receives a decent price on its property.

The good news is that while in other states, purchasing a foreclosure property means inheriting all liens on a property, with Dallas foreclosures, you merely inherit the senior lien, which is the initial mortgage, in general. Beyond these little details, Dallas foreclosures are similar to those in other states, and with a little research and perhaps a day at an auction, you will have a great investment property.

 

About the Author
Myles Johnstone writes exclusively for business & finance related sites about such subjects as commercial mortgages and foreclosures

Source: Business Articles

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