I bought a Texas Tax Deed, now what?

Question

Hello Bigger Pockets Readers!

I had a few quick questions for you.

Let's say I have purchased a tax deed at the monthly auction (Texas sheriff auction) for a reasonable price on a prospective property I anticipate to not be redeemed during the redemption period.

- What are my options during the redemption period other than just waiting for the redemption period to expire?

- Is it possible to have the property owner waive their right of redemption (perhaps for financial consideration)?

-How does the quiet-title process usually work?

-What are  some of your experiences with obtaining title to the property, and what have you learned (I want to hear the good, the bad, and the ugly).

Thanks!

Matt

Matt Hogle · Answer

Rick H.  Unfortunately, both of the properties I was interested in bidding on we're cancelled the morning of the auction. Hopefully there will be some more good properties coming up in a few weeks!

Rick H. · Answer

Mike - yes, what you are asking is certainly possible.

The place to start would be a title insurance company to see what they want that would satisfy for marketable (insurable) title for a later re-sale or conventional financing. Might be as simple as a QCDEED with an affirmative release from former owner. Yes, consideration (monetary or otherwise) would likely help, but not always necessary.

So, did you, in fact, buy a property via sheriff auction?

"What if" scenarios on this site drive me nuts because real estate has so many variables, even before factoring in local laws and gray area aspects.

Mike Hartzog · Answer

Congratulations on your purchase!  You are the new owner of the property so you can rent the property during the redemption period, assuming it is currently vacant.  You can also negotiate with the prior owner to get them to release their right of redemption early.  I am not sure about tax deeds in Texas.  You might have some kind of limited warrantee deed, or a quit claim deed.  In the latter case you would want to initiate a quiet title lawsuit.  If it were me, I would find and engage a good Texas RE attorney about it.