Legal Question in Real Estate Law in Texas

County Auctioned Property

I bought a home at the Harris county auction for $14,000 cash that was seized by the county due to a civil lawsuit regarding an unpaid debt of $25,000 dollars for building materials by the previous owner and now a few days later I have been told by the previous owner that there is an outstanding mortgage loan on the house in the amount of $146,000 that he took out 3 years ago. The mortgage company hasn�t contacted he anyone on this and have yet to foreclose on the property. The property is vacant because the previous owner was using it as rental property. Am I responsible for paying off the debt? Who is entitled to possession of the property at this point? Does the county auction supersede the mortgage loan? I am concerned that I may loose my money here. Please help with some information as to where I stand in this mess...

Thanks, Mr.--name removed--..


Asked on 4/04/08, 8:21 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: County Auctioned Property

It depends on when the mortgage was filed and when the lien attached to the property. Chances are that you bought the property "subject to" the mortgage and are responsible for payment or risk losing it to foreclosure. Have someone look at the priority of the liens. A title company can do this.

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Answered on 4/05/08, 7:42 am


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