Tax lien investing!

[Jack Deer]

Hello everyone,


Texas question! Does anyone have any info they can share about investing in properties that have had unpaid taxes for a long time but aren't on the sheriff's auction or resale list? Is it possible to purchase the unpaid taxes as a lien investment that will permit foreclosure within a specified time frame?

Thanks.

[Tyler Hall]

Hey man,

Texas doesn’t do tax lien sales like some other states—it’s a tax deed state, meaning properties go straight to auction instead of liens being sold to investors. That’s why you’re not seeing these properties listed as tax liens you can buy.

But you’ve still got a few angles to work with:

Check with the county tax office – Some properties slip through the cracks and don’t hit the auction list right away. If you bring it to their attention, they might move it to auction faster.

Go direct to the owner – If they’ve been sitting on unpaid taxes for years but haven’t been foreclosed on yet, they’re probably in some kind of financial distress. You might be able to negotiate a direct purchase before it ever goes to auction.

Redemption period flips – Even after a tax sale, Texas has a 6-month or 2-year redemption period (depending on homestead status). If you’re open to waiting, you could buy the property from the winning bidder at a discount during the redemption window.

Unfortunately, you can’t buy the unpaid taxes as a lien and force foreclosure like in other states. You’ve got to either grab it at auction, get ahead of the process by working with the county, or go directly to the owner and cut a deal.

What county are you looking in? Some places handle this stuff differently.