Need recommendations on sheriff tax lien property
Member since 2022 · 3 posts · 0 votes
Hi there, I'm a newbie to sheriff lien property's. Correctly i purchased a commercial lot and if I'm not mistaken its have 6 months redemption period, after that we can foreclose the property.
Looking for investors friendly Title search companies and lawyers can work with sheriff tax lein.
This is in Texas?
If sober are a deed state not a lien state.
If you got the sheriff deed then you own the property when the deed gets filed. For the most part though you can't do much with it for two years realistically. There may be 6 month redemption...but typically two years before you can sell or build
This is in Texas?
If sober are a deed state not a lien state.
If you got the sheriff deed then you own the property when the deed gets filed. For the most part though you can't do much with it for two years realistically. There may be 6 month redemption...but typically two years before you can sell or build
Thanks for the update Bruce.
So i need to wait two years to do anything like sell or build. Do I need to pay property taxes for those years? And since redemption period is over, do I need to hire a lawyer now to foreclosure the property?
@Amit Verma Check with your title company to see when you can get title insurance. That's really the key thing you want to know before you do anything....if you want to resale at some point. They're really the key to the whole resale issue. Normally they want to see a two year holding period, because it is not just the redemption period, but also the right for the previous owner or some interest owner to contest the sale, which I understand is two years....so even when you pass the redemption period, if you've built a new house on it and they contest the sale, for example saying they were not notified, and they win that lawsuit....then the sale could be cancelled, county would refund what you paid, but they get a new house FREE.
However there are more issues potentially....unless you are going to pay cash, typically a lender would not lend to you without clear title and chances you cannot get that before the two year period from your deed filing date. I guess you could potentially sell if you can find a cash buyer who does not care about title insurance. That's probably rare...and I would think your real estate attorney would want you to disclose the risk to a buyer. In most cases I would not recommend buyers buy from you without title insurance since they could loose any thing they pay you more than what you paid.
You do have to pay property taxes.....welcome to tax deeds in Texas. Depending on when the judgement was granted you may even have to pay taxes on years you didn't own the property. Each county is different about this. For example, especially during Covid, if the judgement was in Nov 2020, they often don't include 2020 taxes in the lawsuit. Normally this is disclosed at the auction, but not always. If they didn't have a sale until July 2021, then you could own 2020 and 2021 taxes and anything after that as the tax bills come out.
The property has already been foreclosed on....as far as I know you don't have to do that again...the tax foreclosure is the foreclosure. I think you may be getting mixed up with other states where you get a lien and have to foreclose to get a deed. In Texas we operate differently of course. We are a deed state, so after you purchased at the sale, typically you get the deed about 2weeks to 2 months after the sale. Probably 95% of the counties also file that deed for you, but you want to make sure they did. If not you need to file it with the county clerk in that county.
@Amit Verma Check with your title company to see when you can get title insurance. That's really the key thing you want to know before you do anything....if you want to resale at some point. They're really the key to the whole resale issue. Normally they want to see a two year holding period, because it is not just the redemption period, but also the right for the previous owner or some interest owner to contest the sale, which I understand is two years....so even when you pass the redemption period, if you've built a new house on it and they contest the sale, for example saying they were not notified, and they win that lawsuit....then the sale could be cancelled, county would refund what you paid, but they get a new house FREE.
However there are more issues potentially....unless you are going to pay cash, typically a lender would not lend to you without clear title and chances you cannot get that before the two year period from your deed filing date. I guess you could potentially sell if you can find a cash buyer who does not care about title insurance. That's probably rare...and I would think your real estate attorney would want you to disclose the risk to a buyer. In most cases I would not recommend buyers buy from you without title insurance since they could loose any thing they pay you more than what you paid.
You do have to pay property taxes.....welcome to tax deeds in Texas. Depending on when the judgement was granted you may even have to pay taxes on years you didn't own the property. Each county is different about this. For example, especially during Covid, if the judgement was in Nov 2020, they often don't include 2020 taxes in the lawsuit. Normally this is disclosed at the auction, but not always. If they didn't have a sale until July 2021, then you could own 2020 and 2021 taxes and anything after that as the tax bills come out.
The property has already been foreclosed on....as far as I know you don't have to do that again...the tax foreclosure is the foreclosure. I think you may be getting mixed up with other states where you get a lien and have to foreclose to get a deed. In Texas we operate differently of course. We are a deed state, so after you purchased at the sale, typically you get the deed about 2weeks to 2 months after the sale. Probably 95% of the counties also file that deed for you, but you want to make sure they did. If not you need to file it with the county clerk in that county.
Thank you for the valuable information!