Beating the competition before an auction takes place in TEXAS

7 Replies

When wanting to purchase a tax deed from a owner that is behind in taxes in the state of Texas, Can I pay-off the outstanding taxes and take ownership of the deed immediately on HC-TAX.net website, so I can eliminate competition at the auction or do I have to get in contact with the owner in order to get the deed prior to the auction and reach an agreement with him/her? I'm trying to race against the clock and do this before others and beat competition and possibly price.

I doubt it since the homeowner can pay the back taxes before the auction takes place.

@Thomas Clinton   In Texas, there is nothing for you to buy until the auction.  If you pay the back taxes on a property you have done nothing but given the property owner a gift.

Be very careful, trying to circumvent the Tax Sale.  

I tried to get a piece of property in Navarro County.  The lady was behind on taxes and was going to be in the Tax Sale.  I offered her $5K and I was going to clear taxes, she was eager to jump at the deal.

Fortunately, I went to the County Clerk and found other problems, I was not going to be able to get clean title.  The property did bring more than I was willing to give, but I could have wound up with a house without clean title.  

I like the Sheriff's Deed, after 2 years I have been able to get title insurance for any sale.  

@ronflatt Thanks for the immediate feedback, a sheriffs deed auction sounds a lot more safe and less risky, but I have heard about buying redemption rights to alleviate the 2 yr. wait for homestead properties during tax deed sales, have you?

Did you see house of sand and fog? what an excellent movie about this very issue

I am a buy and hold investor generally.  The houses, I get rent ready and rent while waiting for the redemption period to expire.  Lots -  I clean up and sell after the shorter redemption period on Owner financing.  Land- I either lease it out or run a few cows on it until redemption period is over.  There is always a way.  

My attorney said the ways around the redemption period were more costly than just waiting.  

In Houston, you may have too much invested.  I go to counties where I do not have as much competition and are close to home.  

Tax Sales can be a great experience and lucrative.  You can also be bit in the behind.  

Follow me or pm and we can discuss them more.  I always welcome fresh ideas and sometimes I can even answer a question or two.  

The other bad thing about tax sales, you have to decide where you are going.  I was after 4 properties on the 2 of January, when I arrived all for had been pulled from sale.  Well Maybe next month.  

Good luck

The Flatt

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