Tax Deeds in Texas

[Lorilyn B.]

Hi all, this forum has been very informative so far and has put a few of the pieces together for me. However, I am in need of some clarification. (I hope we aren't limited on the length of posts :) )

My questions are specifically for Texas. From what I understand a tax deed sold by the county is basically a foreclosure? I was under the impression that the county is the first lien holder so when a tax deed is sold it wipes out all other liens. (I understand that municipalities and other taxing entities exist along side of the county, but it is my impression that they usually lump them together.) Yet I have run into people saying that you have to make sure there isn't a lien on the property. If a person files as bankrupt do you lose all of your investment? Also, what is the recommended ratio between how much you pay for the deed and the property value?

I could keep going but I think this is good for now.

Thanks,

Lyn