Texas tax sales question - Posted by James

Posted by James on October 15, 2005 at 15:27:45:

A Homesteaded property simply means a property with a house on it, right? I have read the John Beck tax sale materials. He makes it sound easy to find properties for only the back taxes. It sounds like only raw land is what can be found for bargains. The redemption period is 180 days for raw land, right? And 2 yrs for homesteaded property? WHat do you do in those 2 years as the investor?, if you won at the auction?

Texas tax sales question - Posted by James

Posted by James on October 11, 2005 at 17:10:21:

Has anyone bought at a Texas tax sale before. What are the rules and where do you find them? On homesteaded properties if you are the winning bidder at the tax sale, when can you get the deed to the property? I have heard that Texas is the best state for tax buyers. I have bought a tax lein certificate in Illinois a few years back. The owner redeemed in 2 months and I made 18%. That was nice, but I’d rather actually get the property. The owner has 2 1/2 years to pay the taxes before you the investor can apply for a deed to the property plus a few notices and hurdles are necessary to go through. This is why I am thinking Texas. Plus, my partner just moved to the Dallas area.

Re: Texas tax sales question - Posted by Steve Mfalls Tx

Posted by Steve Mfalls Tx on October 12, 2005 at 21:18:56:

In Texas the Right of redemption period is 2 years for Homestead property and agricultural land. Its 180 days for all other property… Do some Web seaching and you will find links to some of the counties and what will be coming up for Auction. Some counties you will have to ask to be on a mailing list to make it easier.Since some list in local papers its alot nicer to be on the mailing list.
Also Dont forget Due diligence when you find some props that look interesting…
LOL and happy hunting.

Re: Texas tax sales question - Posted by JS (TX)

Posted by JS (TX) on October 12, 2005 at 16:22:10:

Check out the course “Texas Houses for Pennies” by Darius M. Barazandeh, Esq.

You can Google the name to find it. I didn’t see it on this site for some reason.

Here is a link to a PDF file on the subject:


Re: Texas tax sales question - Posted by Jimmy

Posted by Jimmy on October 12, 2005 at 07:31:40:

I cannot coment on tax lien certificates. I can comment on TX tax sale auctions. They are conducted on the first Tuesday of each month on the steps of the courthouse in the county seat. Each county publishes a list of theproperties for the following month’s auction. You will need to check with the tax office in your county to get the list. Some pubich them online. Others do not. There will usually be a minimum bid.

Some helpful hints:

  1. ALways do your homework. Assume the minimum bid is TOO HIGH until you have concrete evidence otherwise.

  2. In my experience (at maybe 15 auctions in Smith and Travis Counties), many properties do not get bid. two commn reasons: (a) the min bid is higher than the property is worth, or (b) the property has certain defects which make it useless.

  3. The first time a property comes up, the county tax office will set the min bid pretty close to what the back taxes are. In many cases, this will be more than the property is worth, and no bids come. At that point, the property is sent to the “struck off” list. A year later (or 2 years–depends on county), the property will return to the main auction. only this time, the tax liens are gone, and the min bid is set much lower. The county wants to unload the property. Unless there is some incurable defect with the property, the property will sell this time around.

  4. I have seen hundreds of properties sold at these auctions. I have never seen any steals. They do happen every now and then, but not often. Lots of people watch these things. Your best bet for an undermarket price is raw land. There will be many undeveloped lots available. Most investros do not want raw land. You are least likely to get a bargain with a house in good condition.

  5. If you win the bid, you can expect a sherrif’s deed within 45 days of the auction. The debtor has a limited amount of time to fork over the money, plus a premium to you. But this rarely happens.

  6. Some title comoanies do not like sherrif’s deeds. Others have no issue. Look around.