Texas Tax Lien Sales – Sheriff Sale – Tax Deed Sales

No matter what you call them, the claims are always the same!

Investing in a Tax Deed Sale Successfully!

“Make More Money!” … “Get Rich Quick!” … “Cheap Real Estate!”

Who wouldn’t want to jump on the bandwagon? But before you put your hard earned money on the line, there are some things you need to know!

The truth is, all of these phrases are enticing, but they can be more than a little bit misleading. Texas tax lien sales CAN prove to be very profitable, but they are not a “get rich quick scheme” and you must educate yourself before plunging into purchasing Property Tax Foreclosures at a sale or you will lose all your capital and may even end up owing additional money! For example, not understanding the definition of a Foreclosure Redemption Period or being unaware of the potential liabilities you may inherit from an IRS tax lien are just a few of the pitfalls many buyers encounter! Whereas other websites only offer generalities, this website offers both educational information and specific information for your particular Texas County’s Tax Deed Sale including addresses, phone numbers, website addresses, etc. This information is all that you will need in order to effectively research potential properties and purchase properties at Tax Sales.

What exactly are Texas Tax Lien Sales?

Basically, they are auctions held by a county official, usually the Sheriff or Constable, to sell properties that have become delinquent on their local property taxes and have been foreclosed on in the courts (a Property Tax Foreclosure). They have a multitude of names including Tax Lien Sales, Constable Sales, Property Tax Sales and more, but they are all the same type of sale in Texas. The properties at these sales are ordered to be sold by a court official. In Texas, even though you may hear of a sale referred to as a “Texas Tax Lien Sale”, a buyer is not buying a lien, but is actually buying the deed to a property at a Sheriff Sale. Taxes leading to foreclosure can include property taxes, city taxes, hospital taxes and school taxes as well as city liens placed against the property by the city (such as weed or mowing liens).

How does one go about purchasing a Texas Tax Foreclosure?

The basic steps to buying at Texas Tax Lien Sales are as follows:

Step 1Understand the Property Tax Code – Understanding the laws governing the Sheriff Sale is the first place to begin.

Step 2 Locate your Tax Sale List – Locate and study the advertised properties for the upcoming tax sale.

Step 3 Research Property Records – Research the properties using Google Earth and the public Property Records to narrow prospects.

Step 4 Evaluate the Properties – When physically appraising the properties, use appraisal checklists and the proper equipment.

Step 5 Evaluate the Real Estate Comparables – Identify comparables on other similar properties for sale and rent.

Step 6 Analyze the Data – Compare the properties, comparables, renovation costs, holding costs and estimated sales cost to identify the best deal!

Step 7 Register to Bid – Register in your county to bid at the auction.

Step 8 Funding – Decide how you will fund your property purchase

Step 9 Bidding Strategies – Bid at the auction and purchase a property.

Step 10 Secure your Property– Secure the property that you purchased and evaluate the needed repairs.

Step 11 Filing the Property Deed – File the Sheriff’s Deed at your local tax office.

Step 12 Discount Home Repair – Repair and update the property as necessary at minimal cost.

Step 13 Rent or Sale the Property – You can either Flip or Rent. Learn about bot of the choices.

If you follow these simple steps, you will be able to confidently bid and purchase at a Texas Tax Lien Sales, potentially getting some very profitable properties. Everyone has a tendency to want to skip over steps and rush into the auction portion of this process, but unlike bank owned homes for sale, there are differences in tax lien foreclosures such as redemption periods and exceptions to the rules that can be extremely costly. I would caution anyone to carefully complete the above steps before bidding at a sale.

As I build this website, I will expand on each of these steps with details specifically relating to Texas Tax Foreclosure Sales at each county as well as providing specific information regarding the Texas Property Tax Code. Please check back frequently as these updates will be made often.