Texas Tax Lien Auction Questions

[Andrew McAfee]

Hello all,

I am reviewing a list of properties for an upcoming tax lien auction in my Texas county, and I have some questions about how to evaluate the properties.

1. How do I know if there are secondary liens or anything besides taxes owed on the property? And how would I know the amounts owed?

2. How would I officially transfer ownership of the property to myself if I purchase one? And at what point would I do this? After the 2 year redemption period ends?

3. Due to the 2 year redemption period in Texas where the former owner can buy back the property, would I simply hold the property and wait for the redemption period to expire before performing any renovations?

4. The list of properties has a column for "Purchaser and Purchase Amount", and one of the properties has an "intervener" listed which looks to be a mortgage company. How can one buy a property prior to the occurrence of the tax lien auction?

Thank you,

Andy McAfee

[Andrew Postell]

What the??  @Andrew McAfee how was your post AFTER @Bruce Lynn responded to it?  Bruce, do you have some crazy telepathic skills or something?  Anyway, I would suggest here that the TYPE of tax lien auction is critical here.  Meaning, a property tax foreclosure auction would erase just about all liens on a property here in Texas.  The city might allow some grass mowing liens on it but property taxes erase nearly everything else.  Now, an IRS foreclosure auction would be entirely different.   Based on the "Redemption Period" you mentioned that leads me to believe that you are referring to a property tax foreclosure auction.  For most improvements, as long as they are "reasonable" then the prior owner would be required to pay you back +10% of that amount.  So don't do anything too crazy over what is needed and your investment would be reasonably protected.

And not only do you have to wait 2 years for the redemption period to be over so that they can't buy it back you would also need that same period of time to even finance the property.  So whatever  you purchase and put into it....that amount of money will have to stay there until you hit the 2 year period (or 6 months if it was an investment property prior).  

I also have not seen the "intervener" reference before.  Usually the county/city is pretty helpful with this stuff so feel free to call them and be nice and they are usually willing to help.

Hope all of this makes sense.  Thanks!