New to Texas Tax Deed Sales – A Few Questions

Tax Liens & Mortgage Notes
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New to Texas Tax Deed Sales – A Few Questions

Krista Sampson
Member since 2018 · 1 post · 0 votes

I’m  a new investor based in the Austin area, and I’ve been diving into the world of tax deed sales here in Texas. I’d love advice from anyone with experience.

I’ve got a few practical questions I’m hoping y’all can help with:

  1. How do you handle payment quickly after a winning bid? I know many counties require a cashier’s check right away, but my bank only has two locations in Austin and they’re not close to the sale locations. What do you do to get the funds in hand fast?

  2. How do you access the property after purchase? 

  3. What do you do if someone is still living on the property? Do you knock on the door yourself, send someone else, or go through formal channels like a notice to vacate?

Any insight, tips, or “I wish I knew this before my first sale” stories are welcome. Just trying to get a realistic sense of what the day-of and after-the-sale process looks like. Thanks so much!

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T. Alan CeshkerPro Member
Attorney · 3409 Executive Center Drive Ste 110 Austin, Texas 78731 · Member since 2020 · 99 posts · 92 votes
1y

Krista

Good to see you getting into tax FC work.

First - need to make sure you are aware of the 2 year right of redemption for homestead property and the inability to sell via a title insured closing.

Most will bring an assortment of cashier's checks to be able to bid and have dollars at the foreclosure.  It is usually possible to have a bit of time to go to the bank and get payment - this is up to the trustee.

Accessing the property is either by agreement or via eviction.

It is always best to have a bit of separation and have a 3rd party discuss with the prior owner.  Not required though.

Keep all of us posted on your efforts 

Thanks 

Alan

[email protected]
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  • T. Alan CeshkerPro Member
    Attorney · 3409 Executive Center Drive Ste 110 Austin, Texas 78731 · Member since 2020 · 99 posts · 92 votes
    1y

    Krista

    Good to see you getting into tax FC work.

    First - need to make sure you are aware of the 2 year right of redemption for homestead property and the inability to sell via a title insured closing.

    Most will bring an assortment of cashier's checks to be able to bid and have dollars at the foreclosure.  It is usually possible to have a bit of time to go to the bank and get payment - this is up to the trustee.

    Accessing the property is either by agreement or via eviction.

    It is always best to have a bit of separation and have a 3rd party discuss with the prior owner.  Not required though.

    Keep all of us posted on your efforts 

    Thanks 

    Alan

    [email protected]
    2Reply
  • Don McAlpine
    Member since 2023 · 51 posts · 48 votes
    1y

    Hey Krista - I''m in the Austin area and invest in tax deeds.  PM me if you'd like to connect and I'd be happy to share my experience.

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  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    1y

    @Bruce Lynn do you want to respond?

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  • Rhonda Leifur
    Member since 2019 · 12 posts · 3 votes
    1y
    Quote from @Krista Sampson:

    I’m  a new investor based in the Austin area, and I’ve been diving into the world of tax deed sales here in Texas. I’d love advice from anyone with experience.

    I’ve got a few practical questions I’m hoping y’all can help with:

    1. How do you handle payment quickly after a winning bid? I know many counties require a cashier’s check right away, but my bank only has two locations in Austin and they’re not close to the sale locations. What do you do to get the funds in hand fast?

    2. How do you access the property after purchase? 

    3. What do you do if someone is still living on the property? Do you knock on the door yourself, send someone else, or go through formal channels like a notice to vacate?

    Any insight, tips, or “I wish I knew this before my first sale” stories are welcome. Just trying to get a realistic sense of what the day-of and after-the-sale process looks like. Thanks so much!


    In Bexar County, the sale ends usually by 11:30 and they don't want you to go pay with MO or Cashier's check til after 2pm. They want their lunch!! (and time to finalize their paperwork, clean up, and get back to the office.)

    I knock on the door myself. You'll usually know if it's owner-occupied or renters before you go. Renters---continue their rental agreement, owners- give them cash for keys is the easiest way. Also tell them about the overage that they are legally able to get back from the county after you've settled how they will get out. You could always have them pay rent also. Depends on the relationship you can build with them. It can be a win-win-win if it's done correctly.

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