Behind on property taxes in Tarrant County?

How a tax sale works in Tarrant County

In Texas, a tax sale generally follows a lawsuit. A taxing unit sues over the unpaid taxes, and if the court enters a judgment, the property can be sold at a public auction. The buyer receives a deed, and the former owner generally keeps a right to buy the property back (redeem) for a limited period counted from the date the deed is recorded. The period is longer for a residence homestead, land designated for agricultural use, or a mineral interest.

The sale is run by a sheriff or constable, as a public auction. Property that draws no sufficient bid may be struck off to a taxing unit, which can later resell it, sometimes privately.

Sales are held on the first Tuesday of the month. That is the usual pattern, not a confirmed date for any property. The notice for each sale sets its date.

Path 1: Keep the house

A tax sale generally does not go ahead once the full amount due is paid before it happens. After a tax suit, that amount usually includes the taxes, penalties, interest, attorney fees or a collection penalty, and court costs, and it keeps growing over time. The law also offers some owners other protections, described below.

The Tarrant County tax assessor-collector collects property taxes for many local taxing units, but some school districts, cities or utility districts collect their own. Each taxing unit can carry a separate balance on the same property.

• Texas law allows an owner who is 65 or older, who is disabled, or who qualifies for the disabled-veteran exemption to defer collection of taxes on a residence homestead the owner owns and lives in, by filing a sworn affidavit, generally with the appraisal district’s chief appraiser, or in the court where a tax suit is already pending. While the deferral lasts, a taxing unit generally cannot sue or sell the home for those taxes. The taxes are not forgiven: the lien remains and interest keeps accruing at a reduced rate. After the owner no longer owns and lives in the home, collection can resume, but only after a notice from the collector and a waiting period the statute sets. A surviving spouse aged 55 or older may be able to continue the deferral. (Tex. Tax Code § 33.06)
• Texas law allows a tax collector to enter a written installment agreement for delinquent taxes, and for a residence homestead the collector generally must offer one, payable over a period the statute sets, unless the owner has had such an agreement recently. Penalties and interest generally continue to accrue, and missing a payment can end the agreement. (Tex. Tax Code § 33.02)

After a sale: redemption

A former owner, or another person the law allows, generally redeems by paying the buyer the amount the law sets: the bid, the deed recording fee, certain taxes and costs the buyer paid, and a statutory premium. When the property was struck off to a taxing unit and not resold, the amount and payee differ and no premium applies. The redemption period is counted from the date the deed is recorded, not the sale date.

In Texas, the redemption period generally ends 180 days after the deed is recorded, or 2 years after recording if, when the tax suit was filed, the property was a residence homestead, land designated for agricultural use, or a mineral interest (Tex. Tax Code § 34.21). The period for a particular property can differ.

Path 2: Claim surplus money from a sale

If the auction brings in more than the amounts the judgment orders paid, the extra money (the "excess proceeds") is held by the clerk of the court that ordered the sale. A person with a claim to it, such as a lienholder or the former owner, may file a petition in that court. Texas law pays certain claims, such as other liens on the property, before the former owner’s.

Time limit in Texas: a claim to excess proceeds must be filed before the second anniversary of the sale date (Tex. Tax Code § 34.04(a)).

Filing a petition for excess proceeds does not require paying a recovery company. Texas law also limits the fees for helping with a claim and restricts buying or assigning a claim from a former owner.

Court filings are searchable through the Tarrant County District Clerk.

More detail: how surplus funds claims work.

Path 3: Sell the house, including an inherited one

Some owners and heirs in Fort Worth, Arlington or Mansfield who do not plan to keep a house sell it before a tax sale, on the open market or to an investor. In a sale, the delinquent taxes are normally paid from the proceeds at closing.

When an owner has died, selling the house generally requires someone with legal authority to sign, which can involve probate. Depending on the facts, establishing who can sign may involve probate of a will, an estate administration, a court determination of heirship, or another procedure Texas law allows. Probate of a Texas resident’s estate is generally filed in the county where the person lived, which may not be the county where the property is located. (Tex. Est. Code § 33.001)

Common warning signs in an investor's offer

• A request for an upfront fee.
• A request to sign a deed or a power of attorney outside a closing at a title company or attorney’s office.
• An offer to "handle the taxes" in exchange for signing over the house.
• An offer that is not in writing.
• An investor’s offer to buy a house is a different matter from a claim to excess proceeds after a tax sale, but papers signed with an investor after a sale can affect that claim, and Texas law limits how such a claim may be assigned (Tex. Tax Code § 34.04). A former owner, or a former owner’s heir, may file a claim with the court without hiring a recovery company, though court filing costs can apply.