A deep-dive guide to purchasing property through a Mortgage Foreclosure Trustee Sale in Texas from auction day preparation to taking possession.
3 Ways to Purchase a Foreclosure Property
Pre-Auction
Negotiate directly with the homeowner or lender before the sale date.
Auction
Bid competitively at the public trustee sale on courthouse steps.
Post-Auction (REO)
Purchase bank-owned property after it reverts to the lender.
This presentation focuses exclusively on the Auction method the County Foreclosure Trustee Sale.
Trustee Sale Overview
If the debt is not brought current, the property is sold at a public auction to an investor or lender. There are two types of foreclosure auctions in Texas:
Mortgage Foreclosure
Trustee Sale the focus of this training. Held on the first Tuesday of each month. Exact start time listed in each property's Notice of Sale.
Property-Tax Foreclosure
Sheriff's Sale a separate process for delinquent property taxes. Not covered in this session.
How the Auction Is Conducted
Who Runs It?
The county clerk's office only receives and posts the notices. The county does not conduct the auctions. Each property is sold by its own assigned trustee or substitute trustee.
Where & When?
Auctions are held on the courthouse steps or inside the courthouse. There is no podium, trustees call properties one at a time among a crowd of bidders. Register with the trustee upon arrival.
Texas County Auction Size
What to Bring on Auction Day: Payment
Successful bidders at the foreclosure auction must adhere to strict payment requirements. Be prepared before you bid!
No Personal Checks
Personal checks are not accepted as payment.
No Cash
Physical cash is not a valid form of payment.
No Bank Letters
Letters of credit or pre-approval are not sufficient.
Certified Funds Only
Your funds must be certified and guaranteed.
Cashier's Check
Made payable to yourself, then endorsed to the trustee.
Pay Within 10 Minutes
Payment is due promptly after winning the bid.
What to Bring on Auction Day
ID & Entity Docs
Government-issued ID; LLC or entity documents if buying through a business entity.
Certified Funds
Cashier's checks in multiple denominations, made payable to yourself. No personal checks, no cash, no bank letters.
Bidder Registration
Trustee-required registration. Arrive early to complete this before bidding begins.
Property Documents
Maximum-bid worksheet, copies of the foreclosure notice, legal description, and trustee contact information.
What the Trustee Announces
The Property
Address and legal description are read aloud to identify the asset being sold.
Opening Bid
The lender's starting bid amount often the outstanding loan balance.
Payment Requirements
Form of payment, deadline, and any special conditions for that property.
Changes or Postponements
Any last minute updates, cancellations, or postponements to the sale.
How to Bid
When the trustee opens: "On behalf of Wells Fargo I bid $55,500 do I have any other bids?" immediately respond: "One dollar more."
When the trustee asks "Are there any bids?" — always respond with "One dollar more." This keeps your bid incrementally above the competition without revealing your maximum.
After You Win: Payment & Receipt
Pay Within 10 Minutes
Hand cashier's check(s) to the trustee immediately after winning the bid.
Receive Receipt
You will receive a receipt of purchase from the trustee on the spot.
Trustee's Deed Filed
Within 2 weeks, a Trustee's Deed is filed in the county clerk's office on your behalf.
Key Documents to Know
Auction Sale Receipt
Carbon-copy proof of purchase handed to you by the trustee immediately after payment. Keep this safe.
Trustee's Deed
The official transfer of title filed in the county clerk's office within 2 weeks of the sale.
Cash for Keys Agreement
A voluntary agreement offering occupants compensation in exchange for vacating the property peacefully.
Taking Possession: Cash for Keys First
After the deed is filed, you may find the property still occupied. Before pursuing eviction, consider a Cash for Keys agreement — offering the occupant compensation to vacate voluntarily and leave the property in good condition.
This approach saves time, legal fees, and potential property damage compared to a formal eviction. At your discretion, if occupants are cooperative, compensation for move-out may be offered.
Why Cash for Keys?
- Faster than eviction (3–4 weeks)
- Avoids court costs
- Reduces property damage risk
- Maintains goodwill
Eviction Step 1: Notice to Vacate
Write the Notice
A written Notice to Vacate is required by Texas law before filing suit. Your lease may specify additional requirements.
Deliver It
Deliver personally with a witness, by certified mail (return receipt requested), or any other method allowed by law.
Wait 3 Days
You must wait 3 days after delivery before filing in Justice Court. This is a legal requirement that cannot be skipped.
Eviction Steps 2 & 3: Filing & Court
2: Filing the Suit
File an original petition with the Justice Court and pay ~$120 in court costs. A rent suit (up to $5,000) may be joined. Late charges and utility bills cannot be included. The Constable serves the citation (notice to tenant).
3: Going to Court
Bring all documents and evidence, well organized. Present your case by a preponderance of the evidence. Either party has 5 days to appeal by filing an appeal bond. If no appeal, you may obtain a Writ of Possession.
Eviction Step 4: Writ of Possession
What It Is
A court order directing the Constable to place you in possession of the property. Filed after the 5-day appeal period passes with no appeal. Cost: an additional $120 at the JP office.
Collecting a Judgment
An Abstract of Judgment ($5) places a lien against the defendant in the county. A Writ of Execution ($85) may be obtained 30 days after judgment to authorize the Constable to collect.
Eviction Timeline
- Day 1–3: Notice to vacate period
- Day 4–14: 8–10 days to serve citation
- Hearing: 6 days' notice required by law
- Post-hearing: 5-day appeal window
- Constable: Posts 24-hour vacate notice
- Total: ~3–4 weeks
Key Takeaways
Prepare Before You Bid
Arrive early with certified funds in multiple denominations, all required documents, and your maximum-bid worksheet.
Pay Fast, Bid Smart
Pay the trustee within 10 minutes of winning. Always bid "one dollar more" — never reveal your ceiling.
Wait for the Deed
Do NOT improve or pay off anything until the Trustee's Deed is confirmed filed in the county clerk's office.
Possession Strategy
Try Cash for Keys first. If needed, follow the 3–4 week eviction process: Notice → File → Court → Writ of Possession.
Buying at a County Foreclosure Auction