Purchasing Tax Deed Sale in Houston

Purchasing Tax Deed Sale in Houston

Houston, TX · Member since 2017 · 1 post · 0 votes

Hello,  I have read a whole lot of forums, blogs, Q&A and have learned a lot and I want to put into practice what I have learned. I'm looking into buying properties via our local tax deed auctions. I have gone down to observe the sales a few times already. I usually go with the paper in hand to get an idea of how much a property started auctioning at and how much it actually sold for. Since I plan on holding onto the properties as rentals I have learned to see if a property is in a flood zone, inside the city limits or outside the city limits, I have spoken with a few persons at the auctions and no one seems to check the properties much more than a drive by the house. When I ask them about liens 2 persons (well respected that I know make $$ and happened to run into at the auction) they have said all liens are removed, another person (older couple) they didn't even know what I was talking about. I would like to take a dive in and start in the bidding wars, my biggest fear though has always been that there may be a lien or additional taxes due on the property. I want to do my due diligence but at times I feel that is what is holding me back....Is there anyway to find out if there is a lien or anything else owed on the property?? Is there anything else I should be concerned with and checking before bidding on a property?? Thanks!!

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Investor · Hillsboro, TX · Member since 2017 · 358 posts · 245 votes
9y

Most of my rentals have come from tax sales.   It is a great way to pick up some fixer uppers.  I do check, but I have only had one lien come back and it was by the city for demolition of a house.  A quick check at the courthouse takes care of it.  Send me a PM with any questions that I may be able to help with.  

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  • Texas Tax Sales Services · Merit, TX · Member since 2014 · 256 posts · 166 votes
    9y

    As far as liens go, the non-governmental liens are extinguished and governmental liens you inherit when you buy the property at the tax sale.  There usually are additional taxes due after you purchase the property.  for example if you had bought a property at the sale today, you would have to pay the taxes for the entire year even though you didn't own it until September.  It is also possible that it took a long time since the judgment was rendered to get it to the sale and you could owe a few years of taxes if the judgment was several years ago.  sometimes the county brings them up to date in the minimum bid but not all do.  That is part of the due diligence that must be done.  There are several other things that you should be concerned with.  Send me a PM and I will try and help you.  We bought 3 properties today in Texas for our investors.

  • Investor · Hillsboro, TX · Member since 2017 · 358 posts · 245 votes
    9y

    Most of my rentals have come from tax sales.   It is a great way to pick up some fixer uppers.  I do check, but I have only had one lien come back and it was by the city for demolition of a house.  A quick check at the courthouse takes care of it.  Send me a PM with any questions that I may be able to help with.  

  • Investor · Houston, TX · Member since 2016 · 47 posts · 24 votes
    8y

    @Arnie Abramson I'm interested in hearing more about what you and your team does. Can you PM me with more details?

  • Houston, TX · Member since 2017 · 12 posts · 3 votes
    8y

    Nancy, I hope you go with big pockets. The Harris County auctions have become way overpriced. I have seen properties worth $9,000 going for $40,000. Just seems to me that all the big money has moved into that market.

  • Jodi GauthierBusiness Member
    Real Estate Broker · Houston, TX · Member since 2016 · 87 posts · 47 votes
    8y

    @Nancy Tamez I'd suggest confirming it is Tax sale and not HOA sale as they are both auctioned at the same time but the lien priority is completely different.

  • Houston, TX · Member since 2017 · 11 posts · 1 vote
    8y

    I have a (hopefully) simple question. When you buy a resale property at a tax sale you are only responsible for the amount of the winning bid not the entire amount of taxes that were due at the time of judgement? EX. 

    Property taxes owed to county/city ect. were 30k. the first time at auction property did not receive any bids. The property was struck off and returned for resale with a min bid of 5k.

    The buyer would only be responsible for the greater of the 5k min. or the price of the winning bid?

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