Tax sale redemption - has this happened to anyone?

[Carl Dieckmann]

Texas tax code allows for previous owners to redeem a property when sold at a tax auction, and many other states have similar laws. In Texas, the redemption period is for 180 days, or 2 years if the property was homesteaded or ag use. The previous owner must pay a premium of 25% of the "aggerate total" of the bid amount, filing fees, necessary repairs, etc... My question is, has anyone actually had this happen? If so, how did the process go - did the previous owner pay you directly? thanks!

[Bruce Lynn]

@Carl Dieckmann  I've bought a lot of tax sale properties in Texas.  I've had two redeem and one say they would.   The way I would prefer it to work if they do redeem is for my attorney to draw up the deed and for them to meet me at the courthouse with cash or cashier's check for the redemption amount.   They give me the money/check and I'll give them a copy of the deed and file it in front of them with the clerk.   I did it that way once.   If it happens to you, I can give you my attorney's name...we worked on the wording of the deed to include a couple of phrases just to make things clear.  Most attorney's, even board certified real estate attorneys have probably never done a redemption deed, not like it is hard, just not common....so nice to use someone who has done it before.  I know plenty of real estate attorneys and most had never done one.

Second one I wanted to do the same way, but they didn't contact me until about a week before redemption deadline.  I would have still worked with them, it was in process and I expected him to redeem, so to me it is the right thing to do, even if we missed the deadline by a day or two....but there was a little back and forth and he had hired an attorney to represent him, so that burned some time as well...so end the end last day they filed the redemption money with the county and I just requested money from the county.   Pretty simple.  Never signed a deed back to him, which is interesting to me, but that's the way they maybe were forced to do.   

Third one told one of the foreclosure attorneys she wanted to redeem, but then never followed through. Never heard from them.  I think it is tough to redeem, even if they want to.  If they didn't pay their taxes, now they have to figure out how to redeem, how to contact you, how to do it, maybe pay an attorney when they don't have money, pay 25-50% penalty, and on and on, it probably just doesn't happen much.

My guess is most people don't redeem....look at the properties in the sale and think about who/why/when they would redeem.....however if you find the needle in the haystack that is in great shape, occupied, sells for pennies, etc, they'll redeem.

You're welcome to call me if you want to talk more about it.