Redemtion Period Question
I have a childhood friend whos house was sold by auction 1 month ago due to delinquent taxes. I've searched our county tax laws and have found that the previous owner (my friend) has time to come up with the money and get his house back (6 months). He was just planning to let it go, but I've offered him 5000 for it and I will pay the taxes plus penalties (around 6000). He's excited about the prospect (and so am I because comparables are in the 70s) but we're unsure of the process. Do you guys think that I should have a lawyer handle this or is it something that can be done through the county clerk's office rather simply?
Also,
Will the original owner be responsible for the price that the property went for in the auction or is he only responsible for his back taxes plus the 25% penalty?
I need to move on this FAST so any advice you have for me would be great.
Thanks in advance,
Patrick
Are we talking about a property tax sale or a federal tax sell?
[addsig]
Property tax sale.
any advice out there?
Hey Steve (or anyone else with info). I spoke to someone at the tax office and they tell me that I would be responsible for paying the purchase price of the house at auction. Is there and legal way to get around this and to just pay the original amount due on taxes (plus penalities)???
[ Edited by Headsup on Date 11/17/2004 ]
Quote:
On 2004-11-17 11:29, Headsup wrote:
Hey Steve (or anyone else with info). I spoke to someone at the tax office and they tell me that I would be responsible for paying the purchase price of the house at auction. Is there and legal way to get around this and to just pay the original amount due on taxes (plus penalities)???<font size=-1>[ Edited by Headsup on Date 11/17/2004 ]</font>
The tax office did make a correct statement, to redeem the subject property one does have to redeem for the amount of the high bidder plus any other fees, interest and or pantalets that apply according to law.
Their really is no way to just purchase the property back for just the due taxes and penalties after the sale process.
If the sale did not follow proper Texas procedures the sale can be set aside and the process would start all over again or set aside entirely.
If proper procedure was not followed on:
Preliminary Notices
Method of Giving Notice
Posting
Recording/Filing
Mailing
Sale Procedures
The issue than must go before the legal system and a ruling would be provided.
[addsig]
Thank you for the reply JM. Everyone's help on this has been much appreciated. I've decided to go ahead and pursue it anyway by letting my friend claim a "right of redemtion". The house will cost me $27,000 to the tax office and $2,000 split up between my friend and his mother for going through the process. Comparables are in the high 70's with only paint and flooring needing to go in it. Still a good deal but not a home run like I would have had if I had caught it before auction.
Thank you again guys.
Patrick