Bankruptcy & Tax deed

  1. How do you find out if homewoner has filed for bankruptcy??

  2. Let us say that you win a tax deed auction [asume in TX], then the owner files for bankruptcy. What are the consequences for the purchaser of the tax deed??

  3. What if bankruptcy was before tax deed auction??
    Consequences for the purchaser of the tax deed??


Howdy James:

I know a little about this.

  1. You can call the local BK district office. Austin Waco and San Antonio, Houston, Dallas etc. Just ask the clerk.

  2. Once the sale has happened it can be reversed by the court since the debtor still has a vested interest in the property. A creditor or the trustee would have to petition the court. Once a third party has actually bought the property there would be little chance that the sale would be reversed similar to a foreclosure in many respects. There is a small possibility that if a petition were filed it would tie up the property for a month or two.

It is more likely that the trustee or creditors would go after any excess proceeds above the taxes due from the sale rather than the actual property.

  1. If owner files before the sale the property would be pulled from the sale and if by chance it did happen without notice to the county then the sale would be voided as if it never happened. This also happens in foreclosures when the debtor files a day or so before the sale and the lender is not notified.

Each deal is different and this is just some general stuff I have learned or actually happened to be personally. Check with an attorney for specific info on your deal if in question