My home is on tax sale.

Dallas, Texas
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My home is on tax sale.

Dele Gabriel
Member since 2023 · 25 posts · 3 votes

I live in Texas, I owe $12,000 property tax. If not paid in 2 weeks, the tax lean will be auction. I owe the property free and clear. Ideas please. What should I do?

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Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
3y
Quote from @Dele Gabriel:Pay

I live in Texas, I owe $12,000 property tax. If not paid in 2 weeks, the tax lean will be auction. I owe the property free and clear. Ideas please. What should I do?


 PAY it or sell it , really not sure what you are asking all of us to say, 

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  • Guy Gimenez
    Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    3y

    @Dele Gabriel

    Shoot me a private message and I'll see if I can help. I'm in Texas too and do business over most of Texas

    0Reply
  • Guy Gimenez
    Investor · Corpus Christi, TX · Member since 2012 · 2k+ posts · 1k+ votes
    3y

    @Dele Gabriel

    I just messaged you with my contact info. 

    0Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    Take a HELOC or get a line of credit to pay it off.

    1Reply
  • Dele Gabriel
    OP
    Member since 2023 · 25 posts · 3 votes
    3y
    Quote from @Theresa Harris:

    Take a HELOC or get a line of credit to pay it off.


    It will take over 2 weeks to get it done
    0Reply
  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    3y
    Quote from @Dele Gabriel:
    Quote from @Jared Hottle:

    Is there a redemption period where you can pay taxes plus interest and get the property back? If so why not take a HELOC out on the property pay the taxes and then pay the HELOC off.

    What is HELOC?



     Home equity line of credit. A bank gives you a line of credit using your house as collateral. If it is owned free and clear you should have some equity available. talk to some local banks in your area

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    0Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Dele Gabriel:Pay

    I live in Texas, I owe $12,000 property tax. If not paid in 2 weeks, the tax lean will be auction. I owe the property free and clear. Ideas please. What should I do?


     PAY it or sell it , really not sure what you are asking all of us to say, 

    3Reply
  • Dele Gabriel
    OP
    Member since 2023 · 25 posts · 3 votes
    3y
    Quote from @Jared Hottle:
    Quote from @Dele Gabriel:
    Quote from @Jared Hottle:

    Is there a redemption period where you can pay taxes plus interest and get the property back? If so why not take a HELOC out on the property pay the taxes and then pay the HELOC off.

    What is HELOC?



     Home equity line of credit. A bank gives you a line of credit using your house as collateral. If it is owned free and clear you should have some equity available. talk to some local banks in your area


    0Reply
  • Mike ReynoldsPro Member
    construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
    3y

    I knew someone this happened to. He got a hard money loan. It was less than the 25 percent interest you will have to pay for redemption. Then he had time to refi the house and pay the hard money lender. Now his taxes come out of the escrow account every time he pays his mortgage. 

    look for a quick close HML.

    0Reply
  • Dele Gabriel
    OP
    Member since 2023 · 25 posts · 3 votes
    3y
    Quote from @Mike Reynolds:

    I knew someone this happened to. He got a hard money loan. It was less than the 25 percent interest you will have to pay for redemption. Then he had time to refi the house and pay the hard money lender. Now his taxes come out of the escrow account every time he pays his mortgage. 

    look for a quick course HML.


    Thanks
    0Reply
  • Mike ReynoldsPro Member
    construction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
    3y
    Quote from @Dele Gabriel:
    Quote from @Mike Reynolds:

    I knew someone this happened to. He got a hard money loan. It was less than the 25 percent interest you will have to pay for redemption. Then he had time to refi the house and pay the hard money lender. Now his taxes come out of the escrow account every time he pays his mortgage. 

    look for a quick course HML.


    Thanks

     You may can even talk to a bank and tell them what you issue is. Maybe there is a way you can get a personal loan backed by the collateral of your house in less than 2 weeks. 

    1Reply
  • Dele Gabriel
    OP
    Member since 2023 · 25 posts · 3 votes
    3y

    I will try that and thanks again.

    0Reply
  • Chad Davis
    Lender · Richmond VA · Member since 2012 · 322 posts · 34 votes
    3y

    @Dele Gabriel sent pm

    0Reply
  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    3y
    Quote from @Dele Gabriel:
    Quote from @Chris Seveney:
    Quote from @Dele Gabriel:
    Quote from @Chris Seveney:

    @Dele Gabriel

    If you want to keep house, file bankruptcy

    The tax lien will be auctioned in 2 weeks, If it's not paid. 
    Bankruptcy is not the solution.

     Speak to a BK attorney but Bankrupty should protect the property from being foreclosed on, even a county cannot overstep bankruptcy laws. Now whether or not you wish to file is up to you, you asked the question we gave you a solution. We are a lender and have seen this 1000 times with borrowers (and have no issues with it either). 


     
    The property is not being foreclosed on, the tax lien is going to be auctioned.


    Well, technically, a tax sale is a form of foreclosure. The County holds a sale similar to a lender requesting a Sheriff's Sale. The County's tax lien is in the "zero" position - nothing supersedes it.

    You mentioned owning it free and clear. Is a HELOC (with "accelerated underwriting") or some other loan secured by the property a possible option? ... or is your credit not good? (I don't recall right off whether tax delinquencies - prior to the sale - are reported to the bureaus. It is a matter of public record, of course.) Finding a lender might be challenge, I s'pose ...

    0Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    3y

    Try a signature loan, vehicle title loan, friends and family loan, whatever you need to do.

    Seems like miles away right now, but it's only a $12k problem.  Get creative. 

    0Reply
  • Dele Gabriel
    OP
    Member since 2023 · 25 posts · 3 votes
    3y

    Thanks

    0Reply
  • Jacob A.
    Grand Prairie, TX · Member since 2017 · 49 posts · 2 votes
    3y

    When you say you own the house free and clear, I get the impression that you don't have a mortgage on it and that your credit is decent. If so then does any of your credit cards have a balance transfer to checking account option? If so do that and then work on the HELOC.

    0Reply
  • Dele Gabriel
    OP
    Member since 2023 · 25 posts · 3 votes
    3y
    Quote from @Jacob A.:

    When you say you own the house free and clear, I get the impression that you don't have a mortgage on it and that your credit is decent. If so then does any of your credit cards have a balance transfer to checking account option? If so do that and then work on the HELOC.


     
    Deferred Property Tax Payments
    Texans may postpone paying current and delinquent property taxes on their homes by signing a tax deferral affidavit at the (NAME) County Appraisal District office if they are:
    • age 65 or older

    I am 66 yrs. I am going to apply for the Deferred Property Tax Payments. Thanks everybody for your help.

    0Reply
  • Dave Skow
    Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes
    3y

    @Dele Gabriel  1) request a delay  2)  sell property 3) pay the  taxes 

    0Reply
  • Matthew Paul
    Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    3y

    Look into a reverse mortage 

    0Reply
  • Sean Lambert
    Investor · Pacific City, OR · Member since 2016 · 175 posts · 123 votes
    3y

    @Dele Gabriel

    Can you pay it using a credit card?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    3y
    Quote from @Guy Gimenez:

    @Dele Gabriel

    There are a couple of easy, quick fixes here. (1) An investor will gladly pay your taxes in return for an undivided interest in the house. This keeps the house out of foreclosure and gives time to get the property sold. All an investor needs is a title search confirming there are no other liens on the property that would cause a problem when re-selling. (2) An investor can also consider doing a tax loan to cover the unpaid taxes. 

    I have done many of these rescues its simply a sales lease back with option to purchase. as well. gives the party losing the house time to get a sale at the highest amount.. this should be a peice of cake at 12k.
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    1Reply
  • Kumar Gaurav
    Member since 2019 · 258 posts · 35 votes
    3y

    @Dele Gabriel

    I recently received a flyer from a company called figure dot com , they seem to process HELOC much faster than traditional but please do your own research as I haven't worked with them and check with other experienced members

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y

    figure is not offering heloc but similar , heloc lender can offer you heloc as well, also company like points could help you as well.

    if i were you i would just go with company like points , that's the typical company that could help folks in your situation

    i am sorry to say bad advice in BP saying you should file bankruptcy is the worst advice ever, why file bankruptcy for 12k only lol
    Even I could personally loan 12k for 6% interest lol

    0Reply
  • John Cheatham
    Fairfax, VA · Member since 2017 · 1 post · 0 votes
    3y

    If you need the money fast I would borrow from a friend and have them create a Promissory Note with a 12 month time frame so you can determine next steps. After the debt is paid off you can apply for a HELOC if you need the capital to pay the friend back or additional expenses. The Reverse Mortgage is good as well but they have stipulation because you owe back taxes. The key is to pay the taxes off which then gives you many options to move forward.

    0Reply
  • Eric James
    Investor · Malakoff, TX · Member since 2017 · 2k+ posts · 2k+ votes
    3y

    If this is your homestead you will have up to 2 years to recover the property paying 25% interest. 

    Apart from that, someone will contact you days before the sale about purchasing the property from you for we'll below market value.

    0Reply
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