Oglesby, TX · Member since 2017 · 1 post · 0 votes
I'm looking to bid on an upcoming property in my area on a tax foreclosure, my question is what do you do about the current owner still living on the property after sell?
Attorney · Gainesville, GA · Member since 2015 · 106 posts · 87 votes
8y
I'm not from Texas, but in Georgia (where we sell tax Deeds, as opposed to tax Liens), you have redemption periods, etc... to worry about.
That being said, if you're buying the lien, then you'll need to actually foreclose on the property based on that lien, after which you should consider an eviction, or a cash-for-keys option, as suggested above. If you're buying the deed, then you could proceed directly with the eviction/cash-for-keys.
Attorney · Gainesville, GA · Member since 2015 · 106 posts · 87 votes
8y
I'm not from Texas, but in Georgia (where we sell tax Deeds, as opposed to tax Liens), you have redemption periods, etc... to worry about.
That being said, if you're buying the lien, then you'll need to actually foreclose on the property based on that lien, after which you should consider an eviction, or a cash-for-keys option, as suggested above. If you're buying the deed, then you could proceed directly with the eviction/cash-for-keys.
Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
8y
@Micheal Homan. If you are indeed buying a TAX Foreclosure - meaning property the Sheriff / Tax Collector is selling because of Non-Payment of Taxes there are specific redemption periods of time based on the type of property.
Ensure you know and understand the time limits and ramifications of your purchase. Worst case you could find yourself with unwanted tenants living free while you wait out the redemption period. If the property is vacant definitely don't start rehabbing until the redemption period has passed.
Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
8y
@Michael Homan Make sure that the owner has been notified about the 6 months so that your redemption period counts, talk to the county you purchase from and then after the redemption period you will do what is called "try and suppress" the title, same as a quiet title and then you can move forward with the sale of the property. If it is a homestead exempted property, then you have up to two years for the redemption period to take place and then you can sell or rent out the property. One nice thing about Texas is that if you are the wining bidder, be it a tax sale, re sale, or stuck off sale, you still have the right to live in or rent out the property even though the redemption period has not lapsed. It's a great state to work in because the sales are the first Tuesday of every month and if you go to the trust deeds or what I would consider, property the county would sell that has already gone to the auctions, you can even name your price if the timing is right. Look on this website:
www.pbfcm.com and go to tax sales then resales and look for listing from the ISD's and see what is available and if there is a listing from a county you are interested in. Each listing will have instructions along with it as to who you approach with which law firm for the purchase if you find something you like. No competition at a live sale that way.
Investor · Fort Worth, TX · Member since 2013 · 309 posts · 150 votes
8y
@Michael Homan you have basically two options. Pay them to move, or go through the normal eviction process for the state of Texas and the JP precinct the property is in. If this property is their homestead, you may have to wait two years before you can evict them, because of the redemption period. No judge in Texas will take your side, even if you legally purchased the home. They do not want to be known as the judge that takes a person's home away from them. They are elected officials after all and will seek reelection.
While @Josh Carr has some good information, there are some areas that he doesn't address that dives deep into the Tax Code and Occupations Code. You can still lose the property after the redemption period ends. A good case study of this can be found in . The property was sold on the courthouse steps, and the property was returned to the previous owner through bankruptcy court in another state with no interest in Texas Laws.
There are over 15 large attorney's that work deed sales in Texas besides Perdue. Check with your tax assessor collector to find out which attorney's operate in your county. Coryell County uses
Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
8y
@Richard D. It's about due diligence prior to your investment to know all of the facts. If you were the winning bidder of a property then there would be a chance not to own the property during the redemption period and also during a homestead period or other exemptions such as bankruptcy.
Wholesaler · Lehi, UT · Member since 2015 · 333 posts · 144 votes
8y
@Richard D. I mentioned the pbfcm.com for ones that have already gone through two other sales and are struck off and will have a much better chance of taking ownership providing you are the highest bid. Keep a look at the struck off properties and see if you can find anything there. There are also other counties working with the struck off properties. www.lbgs.com is another one that has a majority of the counties and will allow you to search by county and type of sale. It will provide you will a listing to sift through. The only thing is, they still want to have a sale on the struck off listings so again it goes to the highest bidder. Then the rules kick in. You can do research on a property owner to see what he has against him or for him via www.netronline.com. It will allow you to search for bankruptcy, federal lien, Legalities, etc.