Tax Deed Sales In Texas

[Alonso Rodriguez]

I am new to investing and have been doing some homework/studying what I can find and reading as much as I can. I have a question as far as the auctions go. On an auction I was researching the Tarrant County Tax website lists the total due for: $14,079.  the est min bid starts at $4600, adjudged value 128k and in the notes it states: LAND/IMP; SOLD SUBJECT TO 2022 TAXES; HOMESTEAD. My question is IF the winning bid was for the $4600 (assuming nobody bid against you) doesn't the winning bid, wipe out the taxes, is this correct? If so what is the purpose of the Tax Office website listing the total due of $14079? does that matter to us the bidders? And why put notes 'subject to 2022 TAXES'? I am currently just researching and want to attend and observer an auction soon. I def know I am not ready yet to bid, but was curious about this example. 

[Bruce Lynn]

There is always a minimum bid and that is back taxes thru the date of the lawsuit and fees such as interest, penalties and attorney fees.  Not sure why there is a difference between the $4600 and the $14079.  One thing is potentially 2022 and 2023 taxes have not been collected and those are also owed.  Sometimes they are included in the auction amount, sometimes they are not.  You can ask at the auction before bidding starts.   If they are not included then you owe them.  They don't get wiped out.

If it is marked homestead you have 2 years to hold on to it, before you can likely resell it or do any reno.

Also just FYI, I would not expect anything at Tarrant County sale to go for minimum bid.  Normally plenty of bidders there with plenty of cash if it is a decent property.  The adjudged value is not always correct or close, but it can be.  If the value really is around $130K, I would expect this property to sell at auction at $60-80K, so be prepared.   Go watch a couple of times to get an idea of where you need to be.  Remember cash day of sale.  Normally they'll give you a couple of hours to go get your cashier's check and bring it back to the Sheriffs office.