How to Buy Tax Lien Properties in Texas
Many people have an interest in purchasing tax lien property as an investment vehicle. In Texas, it is a fairly simple process to obtain tax lien property from the county you reside in or other counties. Although previous owners have up to two years to reclaim property they lost to a tax lien, they are required to pay up to 25 percent interest under the Texas Property Code. This rate of return is why many people choose to invest in tax lien property.
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Instructions
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Review your local newspaper or the newspaper from the area you wish to purchase tax lien properties. In Texas, notices of tax lien sales are required to be posted in the legal section. You might also search online for tax lien property in Texas; many counties publish their property for sale on their website.
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Go to your county clerk’s office. Many county clerks have a listing available of all the tax lien properties and foreclosure properties that are scheduled to go up for auction the following month. Ask for the listing; if they do not have it available, ask for the attorney that handles the county's tax lien sales. In Texas, most counties hire outside counsel to handle the tax lien sale process.
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Call the attorney’s office that handles the county’s tax lien sales. Request a copy of the month’s tax lien properties. Texas passed a law a few years ago that certain counties might have to verify that a potential purchaser not owe any delinquent property taxes. You should ask if your county is one that requires proof of no delinquent property taxes to buy tax lien property and what forms of payment are acceptable at the auction. Many counties accept only cash or cashier’s check.
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Obtain a letter from your county clerk attesting that you are not delinquent in any property taxes to the county, if it is required to buy property at the tax lien sale. A fee of $10 is usually charged for this letter from the county.
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Review the tax lien sale listing for the place and time of the sale. Under Texas Property Code, sales are on the first Tuesday of the month at the courthouse of the county in which they are held. Times will vary by county. You might also call the county clerk or attorney’s office to verify this information.
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Go to the tax lien sale. Take an acceptable form of payment, such as cash or cashier’s check, and the letter from the county regarding no delinquent property taxes, if applicable. You will then be free to bid on tax lien properties. If you present a winning bid, you will pay the county, and it will issue a Sheriff’s Deed for the property purchased.
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References
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