The Harris County Tax sale resembles a carnival where property listings are auctioned off to pay for taxes owed by the owner. You see Ex-Enron traders, professional home re-modelers, wide eyed novices, and even investors flying in from out of town running madly around a city block with excel spread sheets in their hands.
Everyone has their secret formula to success which they are guarding with their lives. The most important thing to realize is that the professionals have figured out a maximum price they will pay for a property listing. When the property goes above this price, they will stop bidding. You need to do your homework before you arrive at the auction. Check comps on the property, do a title search, know what repairs need to be done immediately, and have a plan for what you are going to do with the property for the next two years.
May I preview a home before the tax Sale?
The homeowner is the legal owner of the property listing prior to the auction. You would have to ask the homeowner for permission to look inside their home. Buyers are encouraged to drive by the home. They should observe the neighborhood and the condition of the home prior to the auction. I would strongly suggest you take photos of homes you are going to bid on, to review later.
When and where are Tax Sales Conducted?
The Harris County Public Tax Sale is conducted on the first Tuesday of any month at the Harris County Family Law Center located at 1115 Congress Avenue in downtown Houston. The auction starts at 10:00am and lasts till 4:00 pm.
Will I need to register the day of the auction?
There is a registration prior to the auction. Allow an additional hour to register. Or register in advance with the Harris County Tax Assessor Collector’s office.
What Paperwork do I need to bring with me to the auction?
In Harris County the purchaser must bring a WRITTEN STATEMENT REGARDING DELIQUENT TAXES. This statement certifies that the buyer owes no delinquent taxes in Harris County. The statement must be notarized and presented to the Harris County Tax Assessor Collector along with a $10.00 statutory filing fee. http://www.publicans.com/documents/request_for_written_statement.pdf
Where are the Tax Sales advertised at?
Information on tax sales may be found on the website of Linebarger Goggan. Tax Sales are also advertised three times prior to the auction in the Daily Court Review. It is available online at www.dailycourtreview.com. The number for the Daily Court Review is (713) 869-5434 if you would like to subscribe.
How do you pay for a Tax Foreclosure?
The buyer is required to pay for the property listing and all costs associated with the judgment within 1 hour of the sale. These times can vary by county and agency. In Harris County payment must be made with cash or cashier’s check. Many bidders purchase cashiers checks in different dominations. The cashier’s checks are then made out to themselves. The endorser then signs the check over to the taxing agency. Because many people carry cash to the auction, you will find that there is a considerable amount of law enforcement officers at the family law center.
How does the Bidding Process Work?
The number one problem bidders will find upon arrival is that the family law center sits on a city block. Auctions are taking place literally everywhere. The buyer needs to locate where the auction for the specific property listing is going to take place immediately upon arrival. The auction itself is pretty standard. The auctioneer reads information about the property listing and then offering the opening bid. Bidders raise there hand to raise the bid. The sale goes to the highest bidder just like any other auction.
Will the property be encumbered by a mortgage or other liens?
The lien holder of a property listing for sale is generally told about the sale prior to the auction. With a tax lien foreclosure all past debts are eliminated if the lien holders were properly notified . There is NO GUARANTEE that the lien interest has been paid or will be paid by the sale of the property. The bidder can not be sure that the lien holder has been properly notified. All sales are considered final, and you are buying the property without any warranty. You are encouraged to go to the courthouse and research the property before purchase.
What is the redemption period for tax foreclosures?
The redemption period can vary depending upon the type of sale. The most common tax foreclosures are property tax foreclosures. The period depends upon whether the home is homesteaded or not. If the home is homesteaded there is a 2 year tax redemption period. If the home is not homesteaded the redemption period is 6 months.
Can I get a Title Policy?
The buyer is issued a Constable’s Deed or Sheriff’s Deed 4 to 6 weeks after the auction. There is no guarantee that a Title Policy will be issued by a Title Company. The buyer would need to make arrangements with a title company before the auction. No matter whether the company issues a title policy or not. It is a good idea to pay the title company to do a Title Search on the property prior to the auction.
If the title company will not issue a title policy after the search. Then the next option would be for the buyer to ask for a Title policy after the redemption period has passed for the homeowner. The buyer should be able to get a clean title on a tax lien foreclosure after two years.
Call Bill Edge at 713-240-2949 to see Houston homes in 24 hours or less.