If a house’s taxes are not paid in Texas, usually a tax lawsuit is issued to collect the taxes. Essentially, the tax suit is filed in the interest of the county in order to induce the payment of the land tax. If these taxes were not collected, the county can have the court mandate to sell the house for the amount of the back taxes.
The county will then send the tax negligent property at a public auction. The opening bid will usually be set at the price of the unpaid back taxes. This sum consists of:
- Delinquent Property Taxes
- Penalty Fees
- Legal Costs
- Interest Charges
- Additional Admin Charges and Fees
When the deed is sold, the buyer gains the rights held by the county. Tax auctions are usually held monthly. There are extremely few limits concerning bidding at these tax auctions. You do not have to be a professional investor, real estate agent, etc. Though, you should be able to pay the bid amount inside a small period, and you cannot be a negligent tax payer in that county.
After the auction, the delinquent tax payer owner of the property has the right to buy back the said land. In most cases, this right of redemption period may be as small as 180 days for some property kinds in Texas. If the negligent taxpayer does not claim to buy back the property during the redemption period, the successful bidder is considered the owner of the property regardless of the price bought. That means that a successful purchaser could become the possessor of a $250,000 house, even if the bid was only for $25,000.
But when the delinquent tax paying owner decides to practice their right of redemption, the money spent at the auction must paid to the investor an interest in order to get the property back to the delinquent owner. This interest could be as great as 25% in the first year or up to 50% for second-year. What this usually means is that the investor would usually get their investment back plus an interest!
If the delinquent owner would want to practice the right to redeem, they should pay the penalty in a certain time period. In Texas the period is usually 180 days sometimes 24 months. The time period will depend on the type of the house that is sold at the auction. A lot of Investors who want capitalize a shorter redemption time will bid on certain types of properties at auction.
Sell Your Property With Back Taxes
It may usually be better to sell your property with back taxes as is to an investor. Not having to deal with IRS and the county court would be a better way to go. You may also get a bigger amount to your property rather than paying back taxes.
At SellYourHomeFastOnline.com, we are open to reasonable arrangements on your property. We pay cash for homes in “as is” condition. No home inspection, no contingencies and no real estate agents are necessary.
Contact us today and get a no obligation, 100% Free offer in 24 hours. Sell your house with back taxes today!