Can I Get My Property Back After a Tax Foreclosure Sale?

property tax foreclosure

Foreclosure is a legal process that will begin in the event of property tax delinquency and any interest or penalties associated with your property tax bill. The tax sale process involves several steps, including public auction bidding that ends with the foreclosure sale of the home to the highest bidder. However, this doesn’t mean that you can’t get your home back after property tax foreclosure is complete. Here are some insights into your options from the American Finance & Investment Company, Inc. (AFIC) team, one of the leading property tax loan companies in Texas.

Texas – A Right of Redemption State

Texas state law includes a right of redemption clause, which is good news for anyone who has lost their home as the result of a property tax foreclosure sale.

How Does Right of Redemption Work?

Essentially, it gives you the right to buy back your home from the new homeowner by paying a specific sum of money within a certain time period.

The amounts and time period differ between states, but Texas has a fairly generous system. Generally speaking, you are allowed to buy back homestead properties and agricultural properties at any point up until 2 years after the date the deeds are filed with the county. Other properties have a far more limited period of 6 months. Once this period is over, you will no longer be able to take any legal action to get it back.

Understanding Tax Lien Foreclosure and Property Redemption Process

In the world of tax lien foreclosures and tax deed sales, understanding the nuances of the foreclosure process is crucial for any property owner. When a property falls into delinquency due to unpaid property taxes, a tax lien certificate sale might be initiated, leading to a tax lien foreclosure. This process, often culminating in a tax sale or tax deed sale, transfers ownership of the property to a new purchaser. However, the original homeowner has a pivotal opportunity to reclaim their home after a tax sale. This process, known as redeeming the property, involves paying back taxes and possibly additional amounts paid at the sale, enabling the former owner to set aside the sale and regain title to the home. Jurisdictions that sell tax deeds offer varying redemption periods, during which homeowners can take legal action to reclaim their home after a tax deed sale, providing a critical lifeline to those affected by tax foreclosure proceedings. Understanding these processes, from how property tax sales work to navigating a tax lien auction, is essential for homeowners facing judicial foreclosure due to unpaid property taxes or seeking ways to retain ownership amidst taxing authority’s foreclosure actions.

How Much Will I Have to Pay?

There is no set amount that you will have to pay to get your home back. Instead, the amount is calculated based on several factors, including the property’s sale price, the fee to record the property deed, and the amount the new owner paid to cover outstanding property taxes and any accumulated penalties and interest.

In addition, you will also need to pay a redemption premium of an additional 25% of the total amount as calculated above within the first year or 50% of this amount within the second year of the redemption period.


You Have the Right to Redeem Your Property Before the Foreclosure Sale

It is important to remember that as a property owner, you also have the right to redeem your property before the foreclosure sale takes place. To release the tax lien on your home, you need to pay the property taxes in full, along with any outstanding penalties and interest, as well as any costs incurred as part of the foreclosure process to that point. A property tax loan company cannot provide you with a property buyback loan, but we can provide you with a loan to pay the full amount of your property taxes, interest, and penalties to prevent foreclosure from occurring.

How Can I Fund the Property Buyback Process Before The Foreclosure Sale Takes Place?

Of course, the main barrier to utilizing the right to redemption is getting access to funds during this critical period of time. This is where property tax loan companies in Texas like American Finance & Investment Company, Inc, can provide invaluable assistance. Not only can we help you explore your options when you cannot afford to pay your property taxes, but we can also supply you with property tax loans that are tailored to your specific needs.

As you can see, the costs to pay your residential property tax loan and redeem your home increase significantly as the time period passes, so we urge you to get in touch as soon as possible in order to find an effective solution as quickly as possible, whether you have property taxes that you can’t pay, are facing the risk of losing your home to a foreclosure sale or want to buy back your home.

To find out more about our services or to get financial assistance to pay your property tax loans or redemption costs, please contact us today or fill out the form below.

Ernest Eisenberg

Ernest Eisenberg, President of American Finance & Investment Co., Inc. (AFIC), brings a wealth of expertise in non-traditional financing, including property tax loans and non-bank mortgage solutions. His vision is characterized by a commitment to offering flexible financing solutions to Texas property owners.

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