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Number of properties up for sale under Tax Foreclosure

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Numerous properties were put up for sale under Tax Foreclosure for the Eagle Pass Independent School District and City of Eagle Pass on Tuesday, December 5, 2017, in front of the Maverick County Courthouse. Some of the properties have outstanding property taxes owed amassing thousands of dollars that have not been paid by the owners in years.

Sonia Gonzalez of Linebarger, Goggan Blair & Sampson, LLP began to read out the rules and regulations of the auction to numerous individuals that were there seeking to buy them cheap and wait the allowed time to lapse on the debtor to be given a chance to recuperate the property as allowed by law under the Right of Redemption Clause of (Tex. Tax Code § 34.21) The post-sale redemption period starts when the deed is filed in the county records (Tex. Tax Code § 34.21).

Gonzalez then began the auction of 12 properties that had a total adjudged value of $247,820 and an amount of estimated combined minimum bid value of $68,051 or only 27% of the adjudged value. This does not mean that they were sold at each of their recommended minimum bid. That’s where the auction comes in.

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Bidders went back and forth on each of the properties which the majority of the properties going for above the estimated minimum bid value.

For example, one bidder paid approximately $18,500 on a property with a minimum bid of $3,093 or a 500% mark up from the beginning bid. The good news for the buyer is that the property in question is worth $30,270 and taxes owed are only $3,000. He will only end up paying $21,500 for the property leaving him a beginning earning of $8,770 on the buying of this property.

As for the debtor, they do have 180 days to recover their property once the deed is recorded but will have to pay 125% of what the buyer paid. If the property is a homestead of agricultural land the redemption period expires on or before the 2nd anniversary of the date of deed was recorded. They must pay 125% if redeemed within the first year and 150% of the purchase price within the 2nd year.

The odds are stacked up against the debtor that they will be able to recuperate the properties at a 125% mark up from what the bidders end up paying.

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