Updated about 13 years ago on . Most recent reply
Went to my first tax auction today
A few of you know that I'm just getting into this game. I went to the local tax auction (TX) today with a few empty lots in mind. I had previously done my research when the list first came out 3 weeks ago. Anyways, the list had dwindled to 3 properties - 2 of which I already had my eye on. The 3rd was quite a surprise. I had missed it during my review because the bid started at $9,100. It turns out it is my lifelong friend's uncle's house. I've known the guy for basically all my life. The county appraisal on that property is $290k. It went for $153k. The rep for the attorney's office stated that the house is still occupied and that they are aware of the auction. I spoke with another guy there about what happens now and here is what he told me.
1. There is no eviction process to go through because they no longer own the property. The new owner can tell them to leave or work a deal with them. If they won't leave, he can call the police for trespassing.
2. The previous owner will receive the remainder of funds after the taxes, fees, etc are paid. They can take the cash and walk away but still have 2 years to redeem the property if they want it back since it is homesteaded. The new owner can rent it out in the meantime.
Does this sound right? It sounds awfully easy to get the previous owner out.
I opted not to bid on the other two properties. I did my research through the county clerk's office. However, the rep mentioned checking with the city for any outstanding charges (mowing, etc) against the property. I was unaware of this. I don't see it really being a big deal but it would be nice to know if there's another grand or more in outstanding charges that need to be paid. Anyone know what the best way is to find out what these costs might be? I know every city is different. I might have to just call around. Is there anything else you think I need to check?
One lot I was looking at started at $2,100. County appraisal is $16.5k. The two neighboring lots are selling for $25k and $28k. The property sold for $5,500. The empty lot was in a rough mobile home park. The previous mobile home had been removed.
The other one was an empty lot in a small town. Started at $800 finished at $2,350. I heard the lady say her grandfather had owned it so they wanted it. That's fine with me. I notice that there area a lot of properties for sale in that are of town. That also turned me off on it.
All in all it was a good learning experience. There were more people there than I expected. I'm sure some didn't know that the list was so small and opted not to jump in the bid on the house.
I know this was kind of long winded. Just wanted to share my experience for anyone else looking to go to one of these auctions.
Most Popular Reply
1 - A Writ of Possession is required to legally remove them. Basically a 20-day clock. See Texas Tax Code Sec 33.51.
2 - Short answer is yes. See Texas Tax Code Sec 34.03 Disposition of Excess Proceeds, 34.04 Claims for Excess Proceeds, and 34.21 Right of Redemption.