Can I Get My Property Back After a Tax Foreclosure Sale
Quick Overview
In Texas, homeowners can reclaim their property after a tax foreclosure sale through the right of redemption. Homestead, agricultural, and mineral-interest properties get a two-year window with a 25 percent premium in year one and 50 percent in year two; most other property types get 180 days with a flat 25 percent premium.
A tax foreclosure sale is the legal process a taxing authority uses to recover unpaid property taxes when a homeowner falls behind on payments.
This is a judicial foreclosure, a longer legal process that gives homeowners several opportunities to save their property before, during, and even after the sale by redeeming it.
Steps You Can Take to Avoid Foreclosure
The best way to stop property tax foreclosure is to take action before foreclosure proceedings begin. If you are struggling to pay your Texas property taxes, review these options to protect your home:
Payment Plans and Deferrals
Your county tax office may offer payment plans to all homeowners or property tax deferrals for those 65 or older, disabled, or veterans. These options can delay foreclosure while keeping your property tax delinquency under control. Homeowners who qualify for a property tax deferral may not be eligible for a property tax loan.
Homestead Exemption
If your property qualifies as a residence homestead, you may be eligible for an exemption that reduces the taxable portion of your property’s assessed value. Lowering your tax bill this way can make it easier to stay current going forward, though it won’t resolve taxes that are already delinquent or stop an active foreclosure.
Right of Redemption
If your property is sold at a Texas tax sale, state law gives you the right to redeem it within:
- Two years to redeem the property if it was your homestead, agricultural-use property, or a mineral interest.
- 180 days (about six months) to redeem most other property types, such as rental, commercial, or vacant land.
For homestead, agricultural, or mineral-interest property, this means paying the purchaser’s bid plus a 25 percent premium if you redeem within the first year, or 50 percent if you redeem in the second year. For most other property types, the premium is capped at a flat 25 percent within the shorter 180-day window.
Property Tax Loans as an Alternative to Foreclosure
If you cannot afford a half-payment plan or do not qualify for a deferral, a property tax loan may help you stop property tax foreclosure. These loans allow homeowners or other property owners to convert delinquent property taxes into affordable monthly payments, protecting them from foreclosure proceedings.
Benefits of a Property Tax Loan:
- Affordable monthly payments
- Flexible repayment terms
- Avoid foreclosure and tax lien foreclosure
- Stop additional tax penalties and interest from accumulating
- Peace of mind and financial relief
By acting early, reviewing available tax relief options, and securing a property tax loan when appropriate, you may be able to avoid losing your home to tax foreclosure.
Worried about losing your home to tax foreclosure? A property tax loan can stop the clock on penalties and give you a manageable repayment plan. Get an instant quote today.
How Can I Stop the Foreclosure Process?
When property taxes become delinquent, the local taxing authority can begin foreclosure by first securing a court judgment. That judgment lets you pay the overdue amount, including penalties and interest, or present a valid defense; if you cannot do either, the court can allow your property to be sold at a tax sale.
Even then, foreclosure can still be stopped. Texas law requires written notice of the sale before it takes place, and paying the delinquent amount in full anytime before the sale, including with a property tax loan, can stop the foreclosure.
Can I Get My Home Back After Foreclosure?
Even after the home sells at auction or is struck off by the county, homeowners still have a chance to reclaim it. For homestead properties, the redemption clock starts on the date the purchaser files the deed.
If the property was sold directly to a purchaser at a tax sale, you generally must repay the purchaser’s bid, the deed recording fee, and qualifying amounts paid by the purchaser, plus the applicable redemption premium.
When the property has been struck off to the county but has not yet been resold, you must pay the lesser of the judgment amount or the fair market value of the property, plus the deed filing fee and costs, within the same two-year or 180-day window described above, depending on the property type.
Talk to AFIC About Your Property Tax Options
While there are many ways to stop foreclosure and even redeem your home after the sale, it’s best to avoid it entirely. AFIC offers an affordable, hassle-free way to pay your local tax office account in full and set up a manageable repayment plan. Get an instant quote by completing the form on our homepage. For qualifying properties, we can pay off your delinquent taxes and offer the following benefits:
- Quick and completely online process
- No money down
- No credit check
- Free 30-day rate match
- Match competitors and beat their rate by 1 percent
- Avoid high penalties and foreclosure
We pride ourselves on finding solutions to suit the unique needs of our clients. If you would like to discuss our property tax loans, please contact our experienced team at AFIC today.
Frequently Asked Questions
Yes. Texas law gives a two-year right of redemption for homestead, agricultural, and mineral-interest property and an 180-day right of redemption for most other property types, such as rental or commercial property, starting from the date the purchaser’s deed is filed for record.
The cost to redeem a property depends on the property type and how it was sold. If the property was sold to a purchaser at a tax sale, redemption generally requires paying the purchaser’s bid, the deed recording fee, qualifying costs paid by the purchaser, and the applicable redemption premium. For homestead, agricultural, and mineral-interest property, the premium is 25 percent during the first year and 50 percent during the second year. For most other property types, a 25 percent premium applies during the 180-day redemption period.
Paying off the delinquent tax balance before the sale date, including through a property tax loan, stops the foreclosure process. Texas law requires written notice before a tax sale, giving property owners a window to act.
When a property is struck off to the county and has not yet been resold, you can reclaim it by paying the lesser of the judgment amount or the property’s fair market value, plus the deed filing fee and related costs.
