what is the bidding system in texas? In other words do you bid down the interest rate or the price of the deed?[ Edited by JBCORP617 on Date 06/03/2004 ]
You bid up on the deed. Bidding starts at the amount of back taxes, penalties and admin. costs.
The price paid at auction (even if the property is bid up) will be included in the computation of the interest amount paid at redemption.
In summary, Texas uses a bid up system. It is is a tax deed state but it has a statutory redemption period of 6 months for non-homesteaded, non-agricultural use, and properties without a severed mineral interest.
If the property is homesteaded, is designeded as agricultural use, or has a severed mineral interest at the time the tax suit was FILED then the redemption period is 2 years.
The lack of a homestead exemption does not gaurantee the property was not used as a homestead. Common investor mistake - Nichols v. Lincoln Trust Co. 8 S.W. 3d 346 (Tex. App - Amarillo 1999, no pet). Learn the details in Texas.
You bid up on the deed. Bidding starts at the amount of back taxes, penalties and admin. costs.
The price paid at auction (even if the property is bid up) will be included in the computation of the interest amount paid at redemption.
In summary, Texas uses a bid up system. It is is a tax deed state but it has a statutory redemption period of 6 months for non-homesteaded, non-agricultural use, and properties without a severed mineral interest.
If the property is homesteaded, is designeded as agricultural use, or has a severed mineral interest at the time the tax suit was FILED then the redemption period is 2 years.
The lack of a homestead exemption does not gaurantee the property was not used as a homestead. Common investor mistake - Nichols v. Lincoln Trust Co. 8 S.W. 3d 346 (Tex. App - Amarillo 1999, no pet). Learn the details in Texas.