Texas Tax Deed - Taking Possession During Redemption Period

5 Replies

Have you ever had any resistance evicting the former owner of the property prior to the sale from a JP court during the 2 year redemption period?

Jonh Doe lives at 123 Fictional Street with a homestead exemption. Can I buy the home and file for eviction on his primary residence during the 2 year redemption period and rent it out.

I believe this is possible, but I'd rather ask now and make darn sure I'm right. I understand the deed gives ownership to the auction buyer. I just wonder if it's a grey area - or just plain black and white text.

@Jeff G. You posted some things that don't make sense to me.  For instance "prior to the sale from a JP court"...not sure what you mean here.

In Texas, owners who are foreclosed on under a trustee's sale (bank foreclosure), there is no right of redemption. For a sheriff's sale (tax foreclosure), there is a 2-year redemption for homestead property. Limitations run from the date the sheriff's deed is recorded, not date of auction. Tax suits are in District Court (or sometimes County Court, in some small counties), not Justice Court. I'm going to assume you're talking after a tax sale.

IF you hold the deed, and there is no lease or anything other to muck up the hypothetical situation, you can file eviction according to the Texas Property Code and Tax Code (situations for eviction after tax sale). From a business perspective, you can offer cash-for-keys, etc. As the buyer at a tax sale, you are entitled to certain amounts to be repaid in the event they want to redeem, but you are entitled to possession during their redemption period.

@Jerel Ehlert
Thank you for the detailed response! I realized after I posted this, that I had posted in the foreclosure section of the forum instead of the HUD, VA & Tax Sale area.

Yes, I'm referring to a tax sale. You answered my question perfectly! 

It's refreshing to speak with someone in the legal arena that has knowledge and understanding tax sales and foreclosures. I have called a few locals hoping I could find a go to guy to pay for advice, and I can tell you they all say they understand the process until I ask the most basic of questions and they fumble. I'd rather deal with the guy who knows the answer right out of the gate.

Just to add one more thing about eviction s in Texas. You must wait a minimum of 20 days before evicting. There also is an alternative way to evict other than the normal eviction process. After the 20 day period you can get a writ from the judge that rendered the foreclosure lien.

My experience is to first try and see if the occupant of the house wants to stay-and pay rent.  If you have to hold it for 2 years it is better to receive cash flow during that period instead of paying out for taxes and insurance with nothing coming in.  Of course you always have the ability to evict if rent payments are not made.