Posted by BrianG (HouTx) on February 27, 2002 at 09:40:28:
I have no experience in NJ as I am in TX, but this is my understanding of how the sheriff sales work in Texas. Somebody PLEASE correct me if I am wrong!
The auction you describe is a judical judgement auction. It Texas, the judgement is a lower priority lien. Yhus when you buy the judgement, all liens in place before the judgement date are still in place and NOT wiped away. You will, however, own the property, but it is still “subject to” all the previous liens. In Texas, I do not think you need to foreclose to get the property after buying the judgement.
The only way I see of making money off these sales is when the total values of all liens and other costs is less then the value of the property (ie: ARV - liens - judgement cost - back taxes - repairs - profit > 0).
I am also curious if the “due on sale” clause will be triggered? I feel it would be, however.
Disclaimer: I am not a lawyer nor do I play on on TV. Consult your own lawyer for specifics in your state.