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.
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