Delinquent Tax Sales

Texas is the second largest U.S. state in both area and population, with an area of 268,820 square miles and a population of 23.9 million and growing. Houston is the state’s largest city with about 2.2 million people. Austin is the capital of Texas with a population of 743,074 people. Texas has the most counties of any state in the U.S. with a total of 254. Of these 254 counties, 50 have a population of over 60,000. Cities and counties (as well as other political entities) are permitted to enter “inter-local agreements” to share services. A good example is some cities and school districts enter into an agreement where the county will bill for and collect property taxes for all three, thus only one tax bill would be sent to the citizen instead of three.

Tax deed sales in Texas by law, must be held on the first Tuesday of any month. In these sales the highest bidder wins the property. In Texas there is a two year right of redemption for homestead property and agricultural land. For any land other than the previous two listed the redemption period is six months. Bidders at sales in counties having a population of 250,000 or more are required to submit a statement of no delinquent taxes owed in order to register for the sale. Properties that are not bid on and purchased are struck off to the taxing jurisdiction that requested the sale. These properties are usually resold by private sales, sealed bids, or by a public auction.  Approximately 4-6 weeks after the sale the successful bidder will be issued a Constable’s deed or Sheriff’s deed.

As stated above there is a two year redemption period in which the delinquent taxpayer may pay the taxes and fees owed and retain ownership of the property. This is for property classified as homestead property or agricultural land. Along with the taxes and fees owned a 25% flat interest rate in the first year and a 50% flat interest rate in the second year are paid to the investor. For any other classified property it is a six month redemption period with a 25% flat interest rate. These high interest rates attract many tax deed investors and give credence to Texas as the “King of Tax Deed States.”

For information on Texas counties click on the link Texas County Locator Map or County Websites