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AN INVESTORS BEST SOURCE FOR PRE-FORECLOSURE AND TAX LIEN SALES
IN BEXAR COUNTY - SAN ANTONIO TEXAS

Why Tax Lien Sales are in High Demand. Learn the secrets that investors don't want you to know about the lucrative interest rates provided by Law and how to access them!!

Many states have different rules governing Tax Lien Sales. This site focuses specifically on San Antonio's Bexar County, Texas, so the statute is not applicable nationwide. While it is recommended that investors do a thorough review of liens, judgements and other encumbrances, purchasing Tax Liens can be very lucrative if invested in wisely.

Usually requiring less capital expenditure than Deed of Trust auctions, Tax Lien properties in Bexar County can sell for as low as a few hundred dollars to over fifty thousand dollars. The winning bidder must pay in full the amount bid in the auction immediately after the auction has ended or as required by the Officer of the Auction, usually by cash or cashiers check. It is possible to win several tax lien deeds for a few thousand dollars.

According to Texas Property Code, the holder of the Tax Lien Deed purchased at auction, for properties that are homesteaded or designated for agricultural use, must receive at least 25% the first year and 25% the second year from the property owner. If, after 24 months, the property is not redeemed, clear title is given to the tax lien deed holder.For Non-Homestead properties, the owner's right of redemption may be exercised not later than the 180th day following the date on which the purchaser's or taxing unit's deed is filed for record; and (2) the redemption premium payable by the owner to a purchaser other than a taxing unit may not exceed 25 percent.

For example: John Smith bids "the minimum bid" of $15,000 on a property he feels is valued at $50,000 in good condition. Since he reviewed all the records and found no other liens or judgements on the property and there are no other bids, he is awarded the property and pays the $15,000 within the prescribed time that day. He will receive a Constable's Deed or Sheriff's Deed within 4-6 weeks after the auction date but have access to that property immediately. As the holder of that Deed, he is responsible to pay all taxes and other payments related to that property but may use that property under the guidelines of the Bexar County (residential or commercial) Property Code. The defaulted property owner then redeems the Tax Lien Deed from John Smith after 6 months and pays John Smith $15,000 + $350 (taxes) + $1000 (payments) + $11.00 (recording fee) = $16,361 (X) 25% = $4090.25 + $16,361 = $20,451.25 which totals $4,090.25 profit. All improvements that are made to the property during this period prior to redemption may not be re-payable to John Smith. If after 24 months, the Tax Lien Deed is not redeemed by the property owner from John Smith, the property is then turned over to John Smith with clear title to do with as he see fit. In this example, John Smith decides to sell the property for $35,000. His ROI is then $35,000 (-) $15,000(tax lien)(-) $750 (taxes)(-) $11.00 (recording fees) (-) $2000 (payments) = $17,239.00 profit.(This is a fictitious example and should not be considered as a real scenario).

Read the Texas Property Code Statute Below:

Sec. 34.21. Right of Redemption. (a) The owner of real property sold at a tax sale to a purchaser other than a taxing unit and that was the residence homestead of the owner or that was land designated for agricultural use when judgement in the suit to collect the tax was rendered or when the tax warrant was issued may redeem the property within two years after the date on which the purchaser’s deed is filed for record by paying the purchaser the amount the purchaser bid for the property, the amount of the deed recording fee, and the amount paid by the purchaser as taxes, penalties, interest, and costs on the property, plus a redemption premium of 25 percent of the aggregate total if the property is redeemed during the first year of the redemption period or 50 percent of the aggregate total if the property is redeemed during the second year of the redemption period.

The above is strictly for informational purposes and is not intended to be used in lieu of legal counsel.. While every effort has been taken to gather correct and useful information for our subscribers, ForeclosureDocs.com makes no claim to being used for legal advice or in lien of receiving legal advice or that the above examples are real . It is highly recommended that the user seek legal counsel on all matters concerning tax lien deed and deed of trust auctions in Bexar County, Texas.