Texas Tax Deed -- Keeping The Taxes Current?
I'm sure this question will be answered in some of the new courses I've purchased but the mailman is taking WAY TOO LONG! This question is driving me nuts so please help Texas experts!
OK, you do your due diligence, you find a great property that you think won't redeem the deed and at the courthouse you get the tax deed. Now you have to wait for six to 24 months before you can start looking at claiming the property through the forclosure process right?
So as you're waiting during this time what do you do about additional taxes that accrue on the property?
Thanks for the help.
RobStack1-------------
I don't really know the state law on the issue, but I think you should pay the new tax bills as they come up. But, it might be well to check the law about this.
There is no foreclosure process to get the deed in TX. The tax sale is a judicial foreclosure of the tax lien and you get a quit claim deed to the property from the sheriff's department. When the right of redemption expires, after either six or twentyfour months, nothing really changes except that property is now officially yours with no right of redemption remaining. The right of redemption just evaporates off the property. You don't have to do anything.
Good Investing************Ron Starr*****************
Rob, your tax bill starts the day you buy the property at auction. Everything is wiped clean before that.
The only redemptions are for homesteads and agriculture properties. But let's say it is a homestead and the previous owner reclaims it. He has to pay you the full 25% penalty plus any taxes that have accrued -- plus you can charge him a fair market rent till he redeems.
Is this a great state or what?
tbird----------------
You have made two factual errors here.
One, owners of all properties sold on tax auction in TX have the right of redemeption. The period is longer for three categories: homesteaded, agricultural, and a new one just passed by the legislature recently, which I am foregetting now.
If an agricultural, homestead, or forgotten third property type is redeemed more than a year after the tax sale, the property owner(s) have to pay a 50% penalty to the tax-sale purchaser, not 25%.
Good Investing******Ron Starr***********
I don't think I asked my question well; lets try it again -- maybe I can explain myself with an example (sorry still learing here
)
I go to the May tax sale and buy a tax deed for $1,000 for taxes that were due up to 2003. It is a general homestead exemption property so I cannot get true title to the property for 24 months after this sale date. I am hoping to get this property and not have the tax deed redemed so here are my issues:
Do I pay the taxes for 2004 and 2005 for the property before I try to claim title?
If I do pay the taxes and the owner redeems the tax lein does he also have to pay back the additional taxes I paid to keep the house current?
If I do not pay the additional taxes can the property end up at the tax lein sale again before I can claim title?
robstac1--(TX)---------
I suggest you read the state statutes on tax sales. You keep referring to "tax liens." There are no tax liens in TX.
You get a quitclaim deed from the sheriff's office. After the redemption period expires the former owner has no right to redeem the property.
As the owner of the property, it is your responsibility to pay the property taxes from the time you get the deed on. I believe that the former property owner would be required to reimburse you for any taxes you pay. But to be sure, read the law.
Good Investing********Ron Starr***********