Texas the Redeemable Deed State

Texas the redeemable deed state has you asking what is a redeemable deed?  Well, first off let’s take a look at the difference between the two types.  A tax deed state is one where the property taxes have been delinquent for 5 years and now the property is going to be sold to the highest bidder, who by the way walks off with the newly acquired property.  No questions asked.

Texas the redeemable deed state works just a little bit differently.  You are bidding on the property that has five years of delinquent taxes that have not been paid; yet it has a redemption period.  This is a protection to the homeowner and one last chance for them to redeem their home.  With Texas the redeemable deed state the redemption period is only 6 months.  However, this is for a home that has no homestead exemption on it.  A homestead exempted property means that it is someone’s primary residence and that the homeowner has applied for a homestead exemption allowing them more time for redemption. With Texas the redeemable deed state, a homestead-exempted property has up to two years for the redemption period.  So you can see that there is a difference between the two and you need to be aware of what you are working with.  There are ways to find out whether or not the property has a homestead exemption on it.  Because Texas the redeemable deed state has an average of 6 months for the redemption period you would definitely want to find out if the property you bid on has a homestead exemption.  Due to the high interest rate that is associated with Texas it is very popular.  Guess what, the interest rate is a penalty so it is a flat rate of 25%.  The good thing about a homestead-exempted property is that if you hold onto the property waiting out the two-year redemption, after the first year it turns into 50% interest.  Wow what a deal!

 Texas the redeemable deed state has three types of auctions.  One is the tax sale auction; the second one is the resale. The resale sells the properties that didn’t sell at the first auction.  The third one is the struck off properties.  These are the properties that did not sell at the first or second auction.  Some counties will sell their struck off properties as is and others will want to hold an auction if someone shows interest in them.  Often times a stuck off property can be purchased for less than the taxes owed.

Primarily three main law firms handle Texas the redeemable deed state.  The sales are held at the county court houses or a similar location of appointment.  All of the properties are attached to an adjudged value and a cause number or suit number.  This is the way Texas handles their tax auctions.   It is a great place to invest for the serious investor who has some money and wants to make much more.  You can end up with some great properties to sell, rent out or live in.  There are more things that make Texas the redeemable deed state great but I have to run for now.   I’ll catch up with the rest on a later blog.  For now, enjoy your learning, due your diligence, and make money!

{ 1 comment… read it below or add one }

Anthony September 6, 2012 at 10:03 pm

wow, that was a very good blog. It was not overwhelming and I feel it gave tremendous amount of knowledge. Thank you. I'll continue my due diligence.


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