This $20,000 is considered “excess proceeds.” As the original property owner, you are entitled to this money. Unfortunately, many former property owners are not aware of this right. In this case, we’ll say your property sells for $35,000 at auction. The court takes $15,000 of that sale to settle your debt. This is because the taxing unit’s priority is collecting your overdue taxes, not getting the money your property is worth. This is why these can be desirable sales for investors-they can purchase a property at a greatly reduced rate and sell it for a profit.įor example, if your property is worth $125,000, and you owe $15,000 in delinquent taxes, the bidding starts at $15,000. Of course, the bidding often leads the property to be sold at a higher rate. When your property is put up for sale, the starting bid is the total owed on your delinquent taxes.
Texas counties hold monthly property tax lien sales, also called property deed sales. These sales operate as an auction. This results in you losing your home and the investment on your property. What rights do you have when your property goes up for sale in a property tax deed auction? Read on to learn more about the rights of former property owners. If you’ve gone delinquent on your property taxes, then you are at imminent risk of foreclosure. Your taxing office retains control of your property tax lien until you pay, and if you don’t, they’ll sell it at an auction.