Texas Tax Laws

Comments(6)

• 
  Tedjr15th February, 2004

  Just a little bit of info here. You bid at the sale and you get a tax deed. The owner has the right to redeem for 6 months unless it is ag or homestead and them the redemption perion is two years. If the owner redeems you get 25% return on your money the first year or any part there of anf 50% return the second year. Pretty good return even if you do not get to own the property. The owner can also sell the property which gives the new owner the right to redeem. I am a little unclear about when the redemption period starts if a property is not sold until after the county takes possession of the property if any one can help here too
  
  Good LUCK and Thank You
  Hope this helps some
  Ted Jr

• 
  lvaughnr21st February, 2004

  Guys, I am still a novice at this but I have been doing a lot of research and this is what I understand.
  In Tx once the tax deed is sold to an investor the original owner has no title to the property. The delinquent owner HAS to redeem the tax deed + interest before he has legal right to the property to be able to sell to another.
  The redemption period clock starts ticking the moment the investor records the tax deed at the county courthouse.
  Hope this helps
  Regards,
  Vaughn...
  A posse ad esse...

• 
  bavila24th February, 2004

  I'm new too and am getting ready to go to my first tax sale in Texas. Does anyone know what happens if there is a mortgage lien attached to the property being auctioned? does it get wiped out when you purchase the tax deed?

• 
  armbruster51228th February, 2004

  Bavila
  
  From what I have gathered once you have possesion of the property and the redemption period has expired the other lein holders lose their interest in the property.
  
  In TX a tax lein becomes first position lein when taxes are delinquent. However if you purchase a tax lein certificate you will get the property if and only if no one redeems the property. Still a 25% return on investment isn't bad. Most likely the mortgage holder will be notified of the delinquent taxes, pay them, bill the homeowner who will pay them or get foreclosed on by the bank.

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  jjye21st May, 2004

  I am unclear here: When the investor got the tax deed, does he has possesion of the house - move in or rent it out? :-o

• 
  RonaldStarr21st May, 2004

  jjye--(TX)------------------
  
  Texas law specifies that the purchaser of a property at a tax sale has the right of immediate possession. However, if there are occupants, you will have to give them notice to move out. If they don't you wil have to do an eviction action.
  
  If there are no occupants you can take possession. However, remember that the redemption period is running. If you sell, you must inform the buyer of the right of redemption. It is likely few people would buy until the right of redemption expires.
  
  Good Investing************Ron Starr**********