Dallas-Fort Worth Real Estate Investor Club

Constable Deed Questions

  • 21 Mar 2016 10:10 AM
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    Message # 3894293
    Anonymous
    Just moved to Dallas from California and excited about the real estate possibilities. I found a property i though was pre-foreclosure and I come to find there is a recorded Constables Deed on the property from March 3, 2016. The homeowner appears to be delusional and squatting in the house with no electricity or utilities. The house is a huge 5/4 in Plano and he actually let me in to see what it needs. It is a mess and heavy rehab is needed, which would still give a nice return when looking at the ARV. 


    It appears he has a few months to redeem the property and it might not be homestead, as he had another property that was also pre-foreclosure. and I am looking for a experienced partner who I can JV with on this who has knowledge of the deed process and ramifications, redemption, and experience with heavy rehabs.

    Thank you to all who reply.
  • 25 Mar 2016 12:34 AM
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    Reply # 3904758 on 3894293
    Deleted user

    Hi Chris,

    Here's what I know about a Tax Deed.  The person who bought it at the tax sale in March has probably not evicted the resident yet and they could be in process.  The person living there now has 2 years to pay the new owner back.  So the new owner will likely do minimal work and rent it out.  That's what I would do.  If the guy who owes back taxes is successful at paying the back taxes with interest, then the house is his again.  It is not a good candidate for a full fledged rehab until after the redemption period which is 2 years.  At this point, the old owner can't sell it now.   He technically lost the deed until he pays those back taxes with interest.  Or the person who bought it could sell it to you.

    Anyone else, please correct me if I am wrong.

    If you find anything else in Plano, I would love to buy it from you.  

    Welcome to Texas!!

    Stacie Meeker

    Investing in DFW since 2003
  • 26 Mar 2016 5:53 PM
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    Reply # 3907012 on 3894293
    Michael Garner

    Nice explanation Stacie! One addtional point, the redemption period for non homestead properties is 180 days.


    Michael Garner - Realtor

    972.841.5486
  • 27 Mar 2016 1:30 PM
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    Reply # 3907906 on 3894293
    Robin Carriger (Administrator)

    Another point is that, in order for the rights of redemption to be successfully exercised, the former owner will have to not only pay the property taxes owed but will have to pay a 25% penalty if he acts within a year and a 50% penalty if he acts within two years.
  • 29 Mar 2016 7:41 PM
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    Reply # 3917782 on 3894293
    Willie Karashin

    It should also be pointed out that a constable's deed can be for more than just tax deeds. They can also be for writ of execution sales performed to pay off outstanding legal judgments against the owner. In those cases, the deed is similar to a quit claim deed and there is no right of redemption for those properties. However, it also means that you assume the mortgage, outstanding taxes, and any other obligations from the property (as with a quit claim).

    **DISCLOSURE: I am not a lawyer, even though it may seem like a play one on the internet. All info should be verified with a real lawyer before believing some guy on a website.
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