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How Do You Invest In Tax Lien Certificates In Texas?

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How Do You Invest In Tax Lien Certificates In Texas?

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Texas doesn’t sell tax liens in the same way most other states do, instead they’re a hybrid state. They sell tax deeds that can be redeemed as liens within six months to two years. Instead of earning interest on tax deeds in Texas, investors earn penalty fees–usually set at 25 percent. Unlike interest, penalties mean you earn the same amount of profit regardless of when the deed is redeemed. So a $1,000 tax deed or lien at a 25-percent penalty will earn $250 total regardless of whether it’s paid in one month or 18 months. Properties that are not listed as agricultural or homestead have a tax deed redemption period of six months. This means the owner can get the property deed back within six months from the date of the tax sale by paying off all fees and penalties. Properties that are classified as homestead or agriculture have up to two years for redemption of the deeds and payment of all penalties. In order for property owners to redeem the deed, they must pay the penalty on your tot

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