Keep an open mind when considering living in any for closed homes

The number of for closed homes is starting to drop from what it was in 2013, but Texas is still third in the nation with the number of foreclosed sales per year. There were 36,000 in 2013, Texas was trailing Florida, and Michigan in the number of foreclosure sales processed in a single year. Dallas and Houston had the most foreclosures for metropolitan cities, with 6,054 and 8,524 respectively. It is a reality for many Texas families; it means there are plenty of properties for sale.

Should you buy one of these for closed homes, if there is a possibility you could get it for well below market value? A foreclosure may be price below market value; you cannot assume it is. Some homes sold through foreclosure sales, which appraised for over the market value. The best way to evaluate if you are getting a fair deal is to study the history of the house. Listing pictures may show some of the house’s condition and give insight into its past; look at how much it has sold for in the past. It is best to get the sale prices on nearby houses and not rely on Zillow estimates.


Six moves you should make if you are buying any for closed homes


  • Have your financing ready – It is best to have the financial aspects related to buying any for closed hommes in place before you bid on a house. You do not want to run into any red tape after you buy a foreclosure. Avoid the disappointment of not having money to make the lender-required repairs. It is possible to get a 203K housing loan from the U.S. Department of Housing and Urban Development. Some lenders will not offer this loan. This loan allows you to make the necessary repairs, as long as you are living in the house. Check the HUD website to find a list of lenders that will offer 203K loans.
  • Always inspect the house – It only costs $300 to $500 and you might be saving money. Some people think they must pay for all the repairs after any for closed homes sell. The bank may make some of the necessary repairs, if certain conditions apply. If you buy one of these homes and an inspector finds the house has termites, the bank may pay the $15,000 to repair the damage caused by these pests. They will not pay for damages to the walls, plumbing, or other fixtures.
  • Warranties anyone? – Is the house under warranty? These for closed houses may have warranties; these warranties will not fix everything that is wrong. For instance, a warranty does not cover a house’s exterior or the roof. There may be stipulations in a warranty that will not cover preexisting problems. Why not ask about exclusions before you buy a warranty? Warranties can be bought cheap when you open escrow on a foreclosure house.
  • Check for liens – Is there a lien on the house? Liens must be paid in full before any foreclosed houses can be owner-owned. You do not have to worry about liens or squatters if you buy a property that is bank-owned, versus your typical for closed homes. The bank has taken care of all liens if a foreclosure property is bank-owned. If a property is not bank-owned, there may be liens you must pay.
  • Get preapproved – It may be your only shot at securing a house that is a foreclosure. Many times, you can have the advantage over less prepared buyers if you are preapproved to buy any for closed homes.


If you are considering purchasing any for closed homes, please talk to us first. We can help you find the resources you need to arrange to buy a foreclosed house. We can talk you through the foreclosure process, so you understand the process and can make the necessary arrangements to get the house inspected. At Save My Texas Home, we are here to help you save a home in foreclosure or hold onto that foreclosed house you just bought. Our specialists can help you every step of the way to save your house, make it through the foreclosure process, and help you buy a foreclosure house. We can point you toward the resources who will provide funding for foreclosure house purchases. We can help you keep your foreclosed home, if you are behind on mortgage payments, too. Call us at 512-271-5044 today, to see how we can help you!

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