Tax Forclosure Aftermath
I am an investor in Texas and I am interested in Tax sales as well. Does anyone know what happens to the other liens on the property? 1st or second mortgages? What about the title how fast can you resale one of these propeties do you have to wait until the six months are over? Or can you put it on the market the next day? It just seem s too easy.
If I was in Texas, I would look for property that has mortgages. I would buy the tax lien, call the lender up the next day and let them know I paid off the home owners taxes. I owuld also let them know that they will lose their security in six months unless it is redeemed. The lender can redeem the property, so my guess would be that they would put a check in the mail to protect their interest. You just made 25% on your money overnight.
quidam,
I am sorry but I do disagree with you. From The research I have done, and the people that I have talked to indicated that Texas is like a hybrid state. it is a lien for 6 months, and then turns into a deed.
We have been strongly adised to go to texas and invest. It is not rare at all for people to pay thier own taxes. If it was, this fourm would not exsist. It doesnt matter if it is Texas, or Alaska, some people will fall behind and lose thier property.
I am also in Texas and have been researching tax liens and deeds for a few days. How can one find out where and when these sales are? What kind of investment amount are you looking at when investing in tax liens and deeds? Any info, advice, help would be greatly appreciated.
Garzilla
Ok, forgive me if I am incorrect. Do you bid down the interest rate their, or does it go to the highest bidder. I guess it is hard to imagine a redemption period after the sale. In california, there is no redemption periiod after the sale.
The way it was described to me, it sounds like a lien.
In TX it is the highest bidder wins. The rate is set at 25% (not annualized, fixed regardless of time).
And you do get the property subject to redemption, which is 2 years for homestead or agricultural properties and 6 months (180 days) for all others.
It is a hybrid deed state, but it is a DEED state, not a tax lien state. You NEVER get a lien, you ALWAYS get the property subject to redemption.
So what is the 25% set for, the amount of their back taxes, or your high bid?