Bid Instructions and Rules

Bid Procedures

Hunt County does not sell tax liens. Hunt County holds a Tax Foreclosure/Constables Sale on the first Tuesday of every month. These sales take place at 10AM on the second floor of the Hunt County Courthouse at 2500 Lee Street in Greenville, Texas. Properties are advertised in the local newspaper three weeks prior to sale. If you purchase property at the Tax Foreclosure/Constables Sale you are required to submit payment in full to the Constable’s office by 2:00 PM on the day of the sale by Cashier’s Check or United States Postal Money Order. You will be required to have a current ‘Bidders Certificate’ (obtainable at Hunt County Tax Office with a $10 annual charge) before a deed transferring ownership can be prepared if your bid is successful.

Properties not sold at the Tax Foreclosure/Constables Sale on the courthouse steps, are then placed in the Judgment Properties program where they will be offered to the public on a first come basis until such time as they are entered into the Hunt County “Resale” Program. The “Resale” is an annual sealed bid sale. Once the redemption periods have expired properties will have their minimum bids reduced dramatically, “For Sale” signs are placed on the properties and bids will be accepted for a 30 day period. Opening and closing dates for the Resale will be advertised in local papers. Bids will not be accepted after 5:00 PM on the closing day, and all bids must be received in our office by that time.

At the end of the bidding time, all bids are opened and all bidders are notified of having Low or High bids. The high bidder is required to submit a cashier’s check or U.S. postal money order for 100% of their bid before Hunt County will start processing resolutions and deeds. The process of producing a filed deed will take a minimum of 90 days.

You can view our listings on the internet at: www.hctax.info

If you would like additional information you may contact Paul Arnold at (903) 408-4024 or Phillip Greenway at (903) 408-4026.

I would like to take this time and thank you for your interest in property in Hunt County.

Sincerely, Randy L. Wineinger,

Hunt County Tax Assessor-Collector

REVISED September 2013

TAX FORECLOSURE / CONSTABLE’S SALE PROCEDURE

THE FOLLOWING ARE IMPORTANT LEGAL FACTS REGARDING THE PROPERTIES OFFERED FOR SALE. POTENTIAL PURCHASERS SHOULD CAREFULLY READ THIS INFORMATION, AND EVALUATE THESE FACTS IN LIGHT OF THEIR ANTICIPATED USE OF PROPERTY:

1) (TAX FORECLOSURE/CONSTABLE’S SALE)

Only Cashier’s Checks or U.S Postal Money Orders will be accepted by the Hunt County Constable’s Office, and should be made payable to ” Hunt County Constable’s Office” . These modes of payment shall be delivered to the office of the Hunt County Constable’s no later than 2 PM on the day of the sale.

2) (JUDGMENT & RESALE PROPERTY SALES)

Only Cashier’s Checks, U.S. Postal Money Orders will be accepted as payment by the Hunt County Tax Assessor-Collector’s Office. Cashier’s Checks and U.S. Postal Money Orders should be made payable to “Hunt County Tax Assessor-Collector”. These modes of payment shall be delivered to the office of the Tax Assessor-Collector, on the first floor of the Exchange Building (2500 Stonewall) no later than 12 Noon on the day of the sale.

2) Property is sold “AS IS AND WHERE IS” with no warranties. Sign placement does not guarantee property location. Properties may not be identified with a sign or a sign can be removed or moved.

3) Title insurance is the responsibility of the purchaser. Since the purchaser will have deed without warranty, a policy of title insurance may be difficult if not impossible to obtain.

4) Current taxes are due and payable by the purchaser, if the taxes are not included in the minimum bid.

5) STATE PROPERTY TAX CODE

6) Purchasers will receive a deed without warranty from the taxing jurisdictions as trustees.

7) If the property is occupied upon possession of the purchaser of the property, the responsibility of eviction goes to the purchaser of the property.

8) Making of improvements to the property before the redemption period has expired is discouraged because if redeemed those improvement cost may not be recoverable.

9) All sales are final except for the normal redemption and the statute of limitations period. (State Property Tax Code Section 33.54-Limitation on Actions Relating to Property Sold for Taxes)

10) Be advised that if you plan to visit the property prior to receiving your deed to the property, you should keep a copy of your payment receipt with you as proof of purchase. It is also important that it be understood that Hunt County and the taxing jurisdictions accept no liability or responsibility for accident or injury that may occur on any properties purchased.

TEXAS PROPERTY TAX CODE

Sec. 34.08. Challenge to Validity of Tax Sale.

(a) A person may not commence an action that challenges the validity of a tax sale under this chapter unless the person:

(1) deposits into the registry of the court an amount equal to the amount of the delinquent taxes, penalties, and interest specified in the judgment of foreclosure obtained against the property plus all costs of the tax sale; or

(2) files an affidavit of inability to pay under Rule 145, Texas Rules of Civil Procedure.

(b) A person may not commence an action challenging the validity of a tax sale after the time set forth in Section 33.54(a)(1) or (2), as applicable to the property, against a subsequent purchaser for value who acquired the property in reliance on the tax sale. The purchaser may conclusively presume that the tax sale was valid and shall have full title to the property free and clear of the right, title, and interest of any person that arose before the tax sale, subject only to recorded restrictive covenants and valid easements of record set forth in Section 34.01(n) and subject to applicable rights of redemption.

(c) If a person is not barred from bringing an action challenging the validity of a tax sale under Subsection (b) or any other provision of this title or applicable law, the person must bring an action no later than two years after the cause of action accrues to recover real property claimed by another who:

(1) pays applicable taxes on the real property before overdue; and

(2) claims the property under a registered deed executed pursuant to Section 34.01.

(d) Subsection (c) does not apply to a claim based on a forged deed.

Added by 1997 Tex. Laws, p. 4301, ch. 1136, Sec. 4; and by p. 4595, ch. 1192, Sec. 3; amended by 1999 Tex. Laws, p. 5109, ch. 1481, Sec. 32.

Notes:
Taxpayer sought to invalidate a tax sale where the taxing unit failed to include the State and the Internal Revenue Service, both of which had existing tax liens on the property. Since the taxpayer was a party to the suit, however, the judgment was found valid. A judgment against a named party is not invalid even though it might otherwise be void as it pertains to a different party that was mistakenly excluded from the lawsuit. Jordan v. Bustamante, 158 S.W. 3d. 29, (Tex. App.-Houston [14 Dist.] 2005, no pet. h.).

Sec. 34.21. Right of Redemption.

(a) The owner of real property sold at a tax sale to a purchaser other than a taxing unit that was used as the residence homestead of the owner or that was land designated for agricultural use when the suit or the application for the warrant was filed, or the owner of a mineral interest sold at a tax sale to a purchaser other than a taxing unit, may redeem the property on or before the second anniversary of the date on which the purchaser’s deed is filed for record by paying the purchaser the amount the purchaser bid for the property, the amount of the deed recording fee, and the amount paid by the purchaser as taxes, penalties, interest, and costs on the property, plus a redemption premium of 25 percent of the aggregate total if the property is redeemed during the first year of the redemption period or 50 percent of the aggregate total if the property is redeemed during the second year of the redemption period.

(b) If property that was used as the owner’s residence homestead or was land designated for agricultural use when the suit or the application for the warrant was filed, or that is a mineral interest, is bid off to a taxing unit under Section 34.01(j) or (p) and has not been resold by the taxing unit, the owner having a right of redemption may redeem the property on or before the second anniversary of the date on which the deed of the taxing unit is filed for record by paying the taxing unit:

(1) the lesser of the amount of the judgment against the property or the market value of the property as specified in that judgment, plus the amount of the fee for filing the taxing unit’s deed and the amount spent by the taxing unit as costs on the property, if the property was judicially foreclosed and bid off to the taxing unit under Section 34.01(j); or

(2) the lesser of the amount of taxes, penalties, interest, and costs for which the warrant was issued or the market value of the property as specified in the warrant, plus the amount of the fee for filing the taxing unit’s deed and the amount spent by the taxing unit as costs on the property, if the property was seized under Subchapter E, Chapter 33, and bid off to the taxing unit under Section 34.01(p).

(c) If real property that was used as the owner’s residence homestead or was land designated for agricultural use when the suit or the application for the warrant was filed, or that is a mineral interest, has been resold by the taxing unit under Section 34.05, the owner of the property having a right of redemption may redeem the property on or before the second anniversary of the date on which the taxing unit files for record the deed from the sheriff or constable by paying the person who purchased the property from the taxing unit the amount the purchaser paid for the property, the amount of the fee for filing the purchaser’s deed for record, the amount paid by the purchaser as taxes, penalties, interest, and costs on the property, plus a redemption premium of 25 percent of the aggregate total if the property is redeemed in the first year of the redemption period or 50 percent of the aggregate total if the property is redeemed in the second year of the redemption period.

(d) If the amount paid by the owner of the property under Subsection (c) is less than the amount of the judgment under which the property was sold, the owner shall pay to the taxing unit to which the property was bid off under Section 34.01 an amount equal to the difference between the amount paid under Subsection (c) and the amount of the judgment. The taxing unit shall issue a receipt for a payment received under this subsection and shall distribute the amount received to each taxing unit that participated in the judgment and sale in an amount proportional to the unit’s share of the total amount of the aggregate judgments of the participating taxing units. The owner of the property shall deliver the receipt received from the taxing unit to the person from whom the property is redeemed.

(e) The owner of real property sold at a tax sale other than property that was used as the residence homestead of the owner or that was land designated for agricultural use when the suit or the application for the warrant was filed, or that is a mineral interest, may redeem the property in the same manner and by paying the same amounts as prescribed by Subsection (a), (b), (c), or (d), as applicable, except that:

(1) the owner’s right of redemption may be exercised not later than the 180th day following the date on which the purchaser’s or taxing unit’s deed is filed for record; and

(2) the redemption premium payable by the owner to a purchaser other than a taxing unit may not exceed 25 percent.

(f) If the owner of the real property makes an affidavit that the owner has made diligent search in the county in which the property is located for the purchaser at the tax sale or for the purchaser at resale, and has failed to find the purchaser, that the purchaser is not a resident of the county in which the property is located, that the owner and the purchaser cannot agree on the amount of redemption money due, or that the purchaser refuses to give the owner a quitclaim deed to the property, the owner may redeem the land by paying the required amount as prescribed by this section to the Assessor Collector for the county in which the property described has been redeemed. The assessor-collector receiving the payment shall give the owner a signed receipt witnessed by two persons. The receipt, when recorded, is notice to all persons that the property described has been redeemed. The assessor-collector shall on demand pay the money received by the assessor-collector to the purchaser.

(g) In this section:

(1) “Land designated for agricultural use” means land for which an application for appraisal under Subchapter C or D, Chapter 23, has been finally approved.

(2) “Costs” includes:

(A) the amount reasonably spent by the purchaser for maintaining, preserving, and safekeeping the property, including the cost of:

(i) property insurance;

(ii) repairs or improvements required by a local ordinance or building code or by a lease of the property in effect on the date of the sale;

(iii) discharging a lien imposed by a municipality to secure expenses incurred by the municipality in remedying a health or safety hazard on the property;

(iv) dues or assessments for maintenance paid to a property owners’ association under a recorded restrictive covenant to which the property is subject; and

(v) impact or standby fees imposed under the Local Government Code or Water Code and paid to a political subdivision; and

(B) if the purchaser is a taxing unit to which the property is bid off under Section 34.01, personnel and overhead costs reasonably incurred by the purchaser in connection with maintaining, preserving, safekeeping, managing, and reselling the property.

(3) “Purchaser” includes a taxing unit to which property is bid off under Section 34.01.

(4) “Residence homestead” has the meaning assigned by Section 11.13.

(h) The right of redemption does not grant or reserve in the former owner of the real property the right to the use or possession of the property, or to receive rents, income, or other benefits from the property while the right of redemption exists.

(i) The owner of property who is entitled to redeem the property under this section may request that the purchaser of the property, or the taxing unit to which the property was bid off, provide that owner a written itemization of all amounts spent by the purchaser or taxing unit in costs on the property. The owner must make the request in writing and send the request to the purchaser at the address shown for the purchaser in the purchaser’s deed for the property, or to the business address of the Collector for the taxing unit, as applicable. The purchaser or the collector shall itemize all amounts spent on the property in costs and deliver the itemization in writing to the owner not later than the 10th day after the date the written request is received. Delivery of the itemization to the owner may be made by depositing the document in the United States mail, postage prepaid, addressed to the owner at the address provided in the owner’s written request. Only those amounts included in the itemization provided to the owner may be allowed as costs for purposes of redemption.

(j) A quitclaim deed to an owner redeeming property under this section is not notice of an unrecorded instrument. The grantee of a quitclaim deed and a successor or assign of the grantee may be a bona fide purchaser in good faith for value under recording laws.

(k) The inclusion of dues and assessments for maintenance paid to a property owners’ association within the definition of “costs” under Subsection (g) may not be construed as:

(1) a waiver of any immunity to which a taxing unit may be entitled from a suit or from liability for those dues or assessments; or

(2) authority for a taxing unit to make an expenditure of public funds in violation of Section 50, 51, or 52(a), Article III, or Section 3, Article XI, Texas Constitution.

Acts 1979, 66th Leg., p. 2300, ch. 841, § 1, eff. Jan. 1, 1979. Amended by Acts 1989, 71st Leg., ch. 796, § 33, eff. June 15, 1989; Acts 1991, 72nd Leg., ch. 419, § 1, eff. Aug. 26, 1991; Acts 1993, 73rd Leg., ch. 349, § 1, eff. May 29, 1993; Acts 1997, 75th Leg., ch. 906, § 11, eff. Jan. 1, 1998; Acts 1997, 75th Leg., ch. 914, § 4, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1111, §§ 6, 8, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1481, § 33, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 231, § 1, eff. May 22, 2001; Acts 2001, 77th Leg., ch. 1430, § 31, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.319, § 12, eff. June 18, 2003; Acts 2003, 78th Leg., ch. 510, § 1, eff. Jan. 1, 2004.

Cross References:
Redemption authorized by constitution, see art. VIII, Sec. 13, Tex. Const.
Agricultural use defined, See Sec. 23.51.
Residence homestead defined, see Sec. 11.13.
Sale of property, see Sec. 34.01.

Notes:
The September 13, 2003 amendments to Sections 13(c) and (d), Article VIII, of the Texas Constitution, take effect January 1, 2004, and apply only to the redemption of a mineral interest sold at a tax sale for which the purchaser’s deed is filed for record on or after January 1, 2004. The redemption of a mineral interest sold at a tax sale for which the purchaser’s deed is filed for record before January 1, 2004, is covered by the law in effect when the deed is filed, and the former law is continued in effect for that purpose.

A taxing unit must deposit all the excess proceeds from the sale of a tax foreclosed property into the registry to the court for proper disbursement to the property owner. This is true even if the property was first offered for sale two years (the redemption time period) before the actual sale of the foreclosed land. Syntax, Inc. v. Hall, 899 S.W.2d 189 (Tex. 1995).

Taxpayers who exercised their right of redemption after tax sale restored their prior title as the owners of the property. Assoc. Home Equity Serv. Co., Inc. v. Hunt, 151 S.W.3d 559, (Tex. App.-Beaumont 2004, no pet.).

Taxing units were not entitled to rescission of a deed acquired in full compliance with the Tax Code. Taxing authorities took a judgment on two tracts of land that were ultimately “struck off” to the entities. The owner redeemed the property. Then, it was discovered that an improvement was located on the land, and the taxing units attempted to rescind the redemption deed by claiming mistake. Whitehead v. Jasper County Water Control & Improvement District No. 1, 118 S.W.3d 485 (Tex. App.-Beaumont, 2003, pet. denied).

A property owner had two years to redeem foreclosed property if property was the owner’s homestead. The owner could meet the homestead requirements under Section 11.13 by occupying the property as a principal residence or having the property owned through a beneficial interest in a qualifying trust by a trustor who qualified for the exemption. The legislative intent is to allow an owner who occupies a homestead an additional period of time to redeem that homestead. The mere failure to actually file an exemption application would deprive the owner of the right to redeem his homestead. Nichols v. Lincoln Trust Company, 8 S.W.3d 346 (Tex. App. – Amarillo 1999, no pet.).

Requiring authorization from all co-owners, when some co-owners are unknown, would make it impossible to redeem the entire property. Term “owner” in Property Tax Code Section 34.21 includes any person with an ownership interest in the property. The owner of an unknown undivided interest in the property could redeem the entire property. Rogers v. Yarborough, 923 S.W.2d 667 (Tex. App.-Tyler 1996).

A delinquent taxpayer’s failure to correctly tender a full redemption payment or to even tender such a sum in good faith under the redemption statue bars any court ordered recovery of the foreclosed land. Therefore, the purchaser of the land at the redemption sale is entitled to actual possession of the land during the redemption period. Burkholder v. Klein Independent School District, 897 S.W.2d 417 (Tex. App.-Corpus Christi 1995, no writ).

The purchaser of property subject to redemption by the former owner is entitled to possession of the property during the redemption period under Sec. 34.21. Goggins v. Leo, 849 S.W.2d 373 (Tex. App.-Houston [14th Dist.] 1993, no writ).

A lien holder is entitled to be joined in a suit to foreclose property. Where the lien holder was not made a party to the suit, the trial court could properly award the redemption amount to the lien holder. Murphee Property Holdings v. Sunbelt Savings Association of Texas, 817 S.W.2d 850 (Tex. App.-Houston[1st Dist] 1991).

Statutes which provide for a right of redemption must be liberally construed. Buckholts v. Alsup, 56 S.W.2d 301 (Tex. Civ. App.-Texarkana 1932, writ ref’d); Macha v. Carameros, 674 S.W.2d 491 (Tex. App.-El Paso 1984, no writ).

A delinquent taxpayer whose property was sold to satisfy a judgment lien for nonpayment of taxes under the Texas Limited Sales, Excise and Use Act (prior to the adoption of the Property Tax Code) has no right to redeem the property in the absence of a statute or constitutional privilege. Wells v. Fenley, 668 S.W.2d 924 (Tex. App.-Amarillo 1984, writ dism’d w.o.j.).

The two-year period that begins with the filing of sheriff’s deed provides reasonable time within which to pay delinquent taxes. Fender v. Moss, 629 S.W.2d 192 (Tex. App.-San Antonio 1982, writ ref’d n.r.e.).

Sec. 34.22. Evidence of Title to Redeem Real Property.

(a) A person asserting ownership of real property sold for taxes is entitled to redeem the property if he had title to the property or he was in possession of the property in person or by tenant either at the time suit to foreclose the tax lien on the property was instituted or at the time the property was sold. A defect in the chain of title to the property does not defeat an offer to redeem.

(b) A person who establishes title to real property that is superior to the title of one who has previously redeemed the property is entitled to redeem the property during the redemption period by paying the amounts provided by law to the person who previously redeemed the property.

RESALE BID PROCEDURES

1. Bids will not be accepted from person(s) or businesses owing delinquent taxes.

2. Sealed bids for resale properties may be mailed to Hunt County Tax Office, P.O. Box 1042, Greenville, TX 75403-1042; or sealed bids may be delivered to the Hunt County Tax Office, first floor of the Exchange Building (2500 Stonewall). Bids must be received in our office by the deadline date and time.

3. Bid forms and information regarding these properties may be obtained and viewed at the Hunt County Tax Office.

4. Each sealed bid submitted must have the property account number (the Property ID number) written on the face of the sealed envelope alone with the date of bid submission. It is required that a separate envelope be used for each bid. THE AMOUNT OF THE BID MUST NOT APPEAR ON THE FACE OF THE SEALED ENVELOPE.

5. The bidder who submits the highest bid before the bid period ends will be notified by mail. Then, within ten (10) regular business days, the bidder must present to the Tax Assessor-Collector 100% of the full bid amount..

6. Only a Cashier’s Check, U.S. postal Money Order will be accepted. (NO PERSONAL CHECKS, NO CASH!)

7. FAILURE TO FOLLOW THE ABOVE PROCEDURES WILL VOID BID(S).

8. The involved taxing jurisdictions for each property reserve the right to reject any and all bids, and to waive all formalities and technicalities.

9. ALL BIDS ARE FINAL. (AS IS / WHERE IS). NO REFUNDS WILL BE MADE. Sign placement does not guarantee property location. Properties may not be identified with a sign or a sign can be removed or moved.  It is the responsibility of the purchaser to research and view the property prior to sale/bidding.

10. Upon refusal by jurisdictions to accept the bid, the full bid amount will be refunded to the bidder.

11. Bidders who fail to pay 100% on the property that they have bid on will no longer be allowed to bid resale properties.

12. PURCHASER FAILING TO COMPLY: SEE RULE 652

13. Title insurance is the responsibility of the purchaser. Since the purchaser will have deed without warranty, a policy of title insurance may be difficult if not impossible to obtain.

14. Purchasers may be financially responsible for installation of infrastructures on properties purchased within the city limits if those amenities do not previously exist. You should inquire with the city authorities regarding infrastructures prior to bidding.

TEXAS RULES OF CIVIL PROCEDURE

PART IV. RULES RELATING TO ANCILLARY PROCEEDINGS

SECTION 3. EXECUTIONS

RULE 652. PURCHASER FAILING TO COMPLY

If any person shall bid off property at any sale made by virtue of an execution, and shall fail to comply with the terms of the sale, he shall be liable to pay the plaintiff in execution twenty per cent on the value of the property thus bid off, besides cost, to be recovered on motion, five days notice of such motion being given to such purchaser; and should the property on a second sale bring less than on the former, he shall be liable to pay to the defendant in execution all loss which he sustains thereby, to be recovered on motion as above provided.

Notes and Comments Source: Art. 3821, unchanged.