$60,000 in my pocket??
At the tax-sales in Texas, you are required to pay the entire bid in cash or cashiers' check at the end of the auction.
If I don't know how much my final bid will be, how do I get a cashiers' check. Surely people don't walk around with thousands of dollars in cash at these sales...
Sorry if this is a dumb question. >
The answer is yes they do walk around with thousands or hundreds of thousands. Im friendly with a person I see at the foreclosure auctions I attend and this individual will come in with $300k+ sometimes in cashiers checks if bidding on a couple of houses. Normally you make out one cashiers check for the opening bid and then bring checks in different increments upto your max offer maybe a couple $10k's a $5k, etc.
[addsig]
Amazing! I guess it's a good thing that Texas has a concealed handgun license.
Thanks for the reply.
For those of us that are either ignorant or just don't live in the Lone Star state, would you be kind enough to give us a primer on purchasing Tax Leins in Texas.
Thanks for your time.
Harry
I'm not sure if this applies in texas, but here in Missouri, I talked to a successor trustee and she said you can present a mortgage pre-approval form at the end of the auction. They will negotiate a time frame within which you would finalize your loan and they get their cashier's check.
Tax sales in Texas appear to be much more frequent than in other states (not all counties, of course). Many counties hold a tax sale every month on the first Tuesday of the month. It doesn't seem to matter if this is a holiday or not, although I do know they will be cancelled from time to time.
The bids are done orally, and what you bid on is the amount you will pay for the tax lein (as opposed to bidding down the interest rate). The interest rate is fixed at 25% if the property is redeemed in the first year, and 50% if it is redeemed in the second. My understanding is that it doesn't matter when the payment is made, you still get the full percentage. That is, if the owner redeems the day after the tax sale, you still get the full 25%.
If the property is redeemed, you will be paid 25/50% on the bid amount, not just the minimum bid amount.
The redemption period is 6 mos. for non-homestead, non-ag and 24 mos. otherwise. What I have not figured out is what the forclosure process is. That is, who is responsible for notifications, how much in advance must notification be given, can the property be lost if proper notification is not given, etc.
Anyway, I am still learning the process myself and thus have not bid on any properties yet.
John Locke said something about Texas not being a good state for investing due to some 2003 tax law changes, but he did not say what those changes were. Anyone know?
P.S. All of this information is my interpretation of the Texas legal-ease I have spent time reading. You should do your own verification to make sure everything above is correct. CYA, CYA.
Quote:
On 2003-06-20 15:15, sotuan wrote:
What I have not figured out is what the forclosure process is. That is, who is responsible for notifications, how much in advance must notification be given, can the property be lost if proper notification is not given, etc.
Hello,
The foreclosure process is done before you buy it. You buy it and get a deed. The deed is encumbered by a right of redemption of the original owners. The redemption has a time frame. After it expires, you own the property. You don't have to notify anyone.
At one time the property came free and clear, with the exception of other Texas State liens and maybe IRS liens (don't remember). Now I hear medical bills and other things can stay attached. That may be the 2003 change he was talking about.
Steve
when you say in Texas the medical bills can come attached: do you mean that opon obtaining the lein you also obtain this persons debt? if so will they let you know in advance at the auctions if a perticular property comes with an outstanding med etc. debt before you bid on this property?
also does anyone recomend any books so that i can research the tax lein process. in perticular in texas. I am concidering 'the 16% solution' (by john malkowitz). are there any others that are recomended reading before jumping in....