Auctions

After the is evicted the house is going to the auction. There are two different auctions:

1. Delinquent Mortgages, known as "Trustee Sale".

2. Delinquent Taxes, Known as "Constable Sale".

Whit "Trustee sale" when the entity (county sheriff) auctions a foreclosed property the note holder may set the starting price as the remaining balance on the mortgage loan. However, there are a number of issues that affect how pricing for properties is considered, including bankruptcy rulings. In a weak market the foreclosing party may set the starting price at a lower amount if it believes the real estate securing the loan is worth less than the remaining principal of the loan.

In the case where the remaining mortgage balance is higher than the actual home value the foreclosing party is unlikely to attract auction bids at this price level. Only cash and cashier checks are accepted on the auction.

A house that went through a foreclosure auction and failed to attract any acceptable bids may remain the property of the owner of the mortgage. That inventory is called REO (real estate owned). In these situations the owner/servicer will try to sell it through standard real estate channels. Under this auction is HUD auction as well and the only difference is that a HUD auction is a form of foreclosure auction except the original lender was a federal agency instead of a private lender. The United States Department of Housing and Urban Development (HUD), is the insurer of loans made through a variety of government programs, particularly FHA loans. When a lender forecloses on a government insured loan, HUD takes possession of the property.

The Tax deliquesce auctions are hold bay he counties. Different counties has different rules.
The profitability of Tax Foreclosure Sales is heavily dependent on the property condition, the outstanding liens, and the popularity of the tax sales. In Texas the tax delinquency foreclosure has a redemption, the homeowner has a chance to have his property back with in two years.