tax sale gone wrong...need suggestions

[misstxdealhunter]

Newbie and tried my hand at a tax sale this morning for a great property. Arrived 2 minutes late and property was sold as I walked up! What if any alternatives do I have to acquire this property. Property was sold $33,000 below appraised value. Ironically this property I discovered belomgs to members of my family but not immediate. Should I inquire with the buyer if he'd like to sell or do I just count it as a loss? At first my motive was to acquire the property but now knowing about it belonging to family I would like to have it and give them a chance to re-buy even if it is buying from me. I realize this sounds silly but need some good advice from those who are pros. Lesson learned from my first tax sale? NEVER be late!

[tedjr]

Howdy Misstx:

In Texas the owner has the right to redeem the property for six months or two years depending on homestead  exemption. They would need to pay a 25% premium to the tax sale buyer in the first year and an additional 25% if after 1 year.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile

[misstxdealhunter]

Thanks for your input. this was a great opportunity and next time I will not only be on time but ready 100%. I have been studying tax sales awhile but there is always more to learn. Just a quick question...when you locate property which is up for tax sale, is there a way to purchase it without attending that sale if owner agrees to allow you to get home if you catch up payments? If so, what is the procedure and what all does that type of transaction entail? Thank you.

[tedjr]

Just like any other closing. Have the title work done to make sure there are no other defaults, judgements, taxes past due etc. The title company will pay the taxes and have all the documents prepared for the buyer and seller to sign.
You need to move fast too cause other investors are looking for the same deal too. Always better to buy before the sale to get ownership without the redemption rights after the sale. You can still get the deed from the owner after the sale and buy the redemption rights but it will cost more. Still if it is a good deal  you can make a profit.

Good luck and thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737
512-301-9171 home
512-587-6177 mobile

[DariusBarazandeh]

Keep in mind that your family still has a right of redemption.  Also remember that in Texas the right of redemption is not a possessory right, but is similar to a contractual right.  

One approach that I have have used (but cannot speculate exactly how the courts would treat this) is to have the delinquent taxpayer 'quit claim' all of thier rights to you.  Basically this means that they have assigned thier right of redemption to you.  

You could now redeem the property from the purchaser at tax sale.  In the alternative you could simply create a written contractual agreeement with your family members and provide them the money to redeem the property and then establish a re-payment plan.

Use your common sense.  Sometimes mixing business and family blood ties can create problems.  There are alot of good deals in the smaller counties as long as your do your research and stay patient.

Best of luck and contact me further if you need help!

[marrylhyn07]

For me, you should inquire with the buyer if he'd like to sell it. Because for me it is an opportunity especially on you who are a property tax agent.

[antonitte03]

I think, it is better if you should not inquire with the buyer if he'd like to sell or do I just count it as a loss. Because you have already sold your property. I hope you find my advise useful.

[nimmysnv]

Keep in mind that your family still has a right of redemption.  Also remember that in Texas the right of redemption is not a possessory right, but is similar to a contractual right.  

One approach that I have have used (but cannot speculate exactly how the courts would treat this) is to have the delinquent taxpayer 'quit claim' all of thier rights to you.  Basically this means that they have assigned thier right of redemption to you.  

You could now redeem the property from the purchaser at tax sale.  In the alternative you could simply create a written contractual agreeement with your family members and provide them the money to redeem the property and then establish a re-payment plan.

Use your common sense.  Sometimes mixing business and family blood ties can create problems.  There are alot of good deals in the smaller counties as long as your do your research and stay patient.

Best of luck and contact me further if you need help!

hello !!!

yes i m totally agree with the fact that family concern matters first and then one should make decision for that.

Thanks