All Forum Posts by: Arnie Abramson

She said she was in Texas.  Texas is a tax deed state.  You are buying the property,

The homeowner redeeming the home will pay you the money.  You are entitled to your purchase price plus 25% if during the first year.  You also are entitled to repayment of certain other costs plus 25%.  Send me a PM and I will guide you through the procedure.

Actually, in Texas it is 25% for the first 12 months and 50% for the second 12 months.  The redemption period is 180 days unless it is a homestead, has an agricultural exemption or is a severed mineral lease-then it is 2 years.

The sheriff deed or constable deed is permanent and you have all the rights to the property when you purchase it at the tax auction, except the right of redemption.  That includes the right of possession.  It probably will be at least 2 years before you can get a title policy from a title company, however.

If you bought a tax deed in Texas you are the owner and if he then declares bankruptcy it has no effect on you.  He still has his right of redemption and that is all.

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In Houston right now the competition is fierce to say the least.  Your bet opportunity would be in the smaller counties outside of Harris county.  We have had success there.  Make sure you are educated on the Texas tax sales before bidding.  Send me a PM if you would like more details.

I would think that the correct answer is it depends on the state.  In Texas, for example, if they redeem they must pay the amount the tax deed was purchased for plus either 25% or 50%, depending on when they redeemed.  In addition, there are other "costs" that they would have to pay for if redeemed plus the same interest penalty charge (25% or 50%).

In Texas, all purchases have a 180 day redemption period unless it is a homestead, has an agricultural exemption, or is a severed mineral lease.

You need to also know that it is unlikely that you will be able to obtain a title policy for 2 years.  That has nothing to do with redemption as it pertains to contesting the sale if someone who should have been notified was not.

More details if you wish to contact me on a PM.  I do teach on this subject.

SELF DIRECTED IRA S ARE PERFECT. MANY OF OUR INVESTORS USE THEM.

Most do survive the cuts and make it to the sale.  There are a lot of tax lending companies that send flyers to those on the list and offer to loan them the money to pay the taxes and some take the deal and the properties are withdrawn from the sale.  Usually they promise automatic acceptance, no payments for 90 days. etc.  Since they are licensed tax lenders they have priority if they make these loans.  Do the math-if the owner hasn't been able to pay taxes, now if they accept the deal they will have to start paying taxes and pay back the loan.  When they default, the lender forecloses.

As for the comment about the minimum bid only paying off up to the judgment years:  That is one of the things we have to research.  If, for example a judgment is rendered in 2014, it probably only covers through 2013 since the 2014 taxes aren't even due until the end of 2014.  Then, if the property doesn't go on the auction block until 2017, in addition to what you pay for at the auction, you will also need to pay for taxes for 2014, 2015,2016, and 2017 when they are due.  These do not have to be paid the same day as the auction but if you do not pay them in a timely manner, you could lose the property to tax foreclosure yourself.

While you are at it, you also must check to make sure that the minimum bid covers all of the taxing entities and not just the county or the city.  Another of the mine fields that we must negotiate at every sale for every property.

Feel free to contact me in a PM to learn more.