Tax Sales In Texas
Ok,
Sheriff's Sale or County Sale(Taxes)
1. Who determines if they qualify for the redemption if it was not their homestead?
2. I know about the reimbursement if they claim the redemption, but what about whats been paid into the house after you have had it....( mortgage payment, improvements, new refrigerator?)
3. Tax sales by the sherriff for the County aren't free and clear? They still have all other existing liens?
4. What about AD Valorem taxes on Mortgage foreclosures? Are these free and Clear?
5. What is the difference between Ad Valorem taxes and IRS taxes, and are they free and clear?
Any responses are very thankful
1. Texas statute decides. 6mos for non homestead. 2 years for homestead. homestead is determined if the owner applied for the exemption. No guessing for this it is disclosed at the sale and can easly seen on the tax record.
2. you spend money you can lose it. dont spend any untill the redemption is over. Except for "costs" reasonably spent for maintance, preservation, and safe-keeping listed in subsection 23.51. You do have full right to posess the property though and use it. evict tenants or collect rent. but, you'd better be prepared to vacate if the owner redeems. if you did spend NESSESARY and PRUDENT upkeep of the property you should keep GOOD records
3. leins are wiped out IF they have been properly notified by the state and they dont make claim. The state says they do this but still a risk ,as the state of Texas does not guarrenty ANYTHING.
4. the mortgage would get wiped out too. this is related to question # 3
5. the difference is ad valorem taxes are state property taxes. Irs Taxes are just that- Rember IRS is only one segment to Federal tax Leins
note: Texas is not a tax certificate state. Texas does give you a sherrifs deed to the property. You are bidding on the property. If you bid and win more than the taxes owed the owner gets the difference.
_________________
B.G. & Wheeler D. LLc Inc.
(A division of: Half Vast Enterprises)
[ Edited by WheelerDealer on Date 01/09/2004 ]
Most of your answers can be found in the tax code. Here is a link to the Travis County site. Bexar County may have the same
http://www.taxnetusa.com/98code/chapter34.htm#34.21
Ad valorum taxes are property tax both real and personal. IRS deals with federal taxes. You are buying the past due taxes and will only owe prorated taxes to the county for the current year. Taxes stop if the property is struck off until it is sold.
I would not do any improvements to the property until the redemption period passes. It is my understanding that the owner can deed their redemption right to anyone. You may try to find the owner and gat a deed from them. Deed without warranty or something. Any liens that the owner borrowed will be wiped out at the sale and they may apply for any overage from the county if any or sue the previous owner. IRS and City liens and judgements stay with the property. Mortgage foreclosures do not affect any taxes and will stay with the property. Any other question please let me know
Good LUCK and Thank You
Hope this helps some
Ted Jr
Ok, that helped from both of you..thanks...
let me go a little further you studs.
1. Let say I now have the Tax deed, can I sell the property?
2. Are you sure about the free and clear of all other liens for the county tax sale, what if the mortage is the first lien holder?
3. Ok I know tax sales for sherrifs is what we have been talking about.
a. Ad valroem taxes with Mortgage foreclosures, are they free and clear of any other liens?
b. And what about IRS tax liens? Are they free and clear of other liens?
And how are you 2 doing up in Austin
1. NO you dont have full rights untill the redemption is over
2. Yes. sure. If the first lein does not make claim then yes it get wiped out too.
3a. ) dont confuse a Tax sale with a foreclosure sale (mortgage company foreclosing not the state) If you are asking if a bank is foreclosing are the property taxes in the arrears wiped out ? NO. You have to pay the back taxes. Back taxes unpaid WILL eventually lead to another foreclosure. YOURS!
4b. At a property tax sale the Federal taxes can or cannot be wiped out it depends on Federal law. reaserch it.
Remember Federal tax leins are not limited to IRS. For example: FDIC leins are superior leins. Also,A tax lien is inferior to claims for any survivor’s allowance, funeral expenses, or expenses of the last illness of a decedent made against the estate of a decedent as provided by law, or recorded restrictive covenants running with the land or valid easements of record which were recorded prior
to January 1 of the year the tax lien arose. sec 32.05
ALL leins are to be wiped out at a tax sale. However ONLY those leins that were prperly notified. The state of Texas assumes NO liability in the event of mess-up. Its passed on to YOU. So do your title research and look to see if all leins were sent notice.
Remember at a Tax sale in Texas you are buying the RIGHT to ownership. You do not get to exorsize that right untill the exemption period is over.
_________________
B.G. & Wheeler D. LLc Inc.
(A division of: Half Vast Enterprises)
[ Edited by WheelerDealer on Date 01/09/2004 ][ Edited by WheelerDealer on Date 01/09/2004 ]
I think I got it now. .I will have to incurr the mortgage t at a county sherriffs sale if they filed it correctly....
thanks