Situation

Delinquent property taxes in Texas: penalties, the tax suit, and selling before the tax sale

Property taxes in Texas don't just sit there. Penalties and interest start in February, attorney fees get added in July, and eventually the taxing units sue and the county sells the property. A sale pays everything at closing, which is often the cleanest way out.

Updated October 2026

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How it escalates

When	What happens
February 1 after the tax year	Taxes are delinquent; penalty and interest begin and grow monthly.
July 1	Accounts turned over to the taxing units' delinquent tax attorneys; a collection fee (a percentage of the amount owed) is added.
Later	A lawsuit to foreclose the tax lien, then a judgment and a tax sale at the courthouse. Timelines vary by county and by how far behind the account is.

Protections worth knowing

Homestead payment plans: owners with a homestead exemption can usually get an installment agreement from the tax office.
Over-65 or disabled owners can defer collection on a homestead; the taxes accrue interest but the county can't foreclose while the deferral is in place. Ask the appraisal district.
Redemption: even after a tax sale, Texas gives the former owner a period to redeem a homestead by paying what the buyer paid plus a premium. It's a safety net, not a plan.

How a sale handles it

The title company orders a tax certificate, the delinquent amount (with penalties, interest and attorney fees) is paid from your proceeds at closing, and you receive the balance. If the property is already in a tax suit, closing before the sale date is possible; tell the buyer and the title company the case number and any dates on day one.

Questions people ask

Does the buyer pay the back taxes?

They come out of the sale proceeds at closing, so in effect the price covers them. The offer accounts for them.

Can I sell if a tax suit has been filed?

Yes, up until the property is sold at the tax sale. The sooner the better; attorney fees keep growing.

I'm over 65 and behind. Should I sell?

Ask the appraisal district about a tax deferral first; it may let you stay. Selling is one option, not the only one.

Needs major repairs: Why North Texas houses with foundation or roof problems are hard to sell retail, what a buyer's lender will refuse, and how an as-is sale prices the repairs.
Distressed / code violations: How city code liens, a condemnation or demolition order, hoarding conditions or fire damage affect a sale in Texas, and why a direct buyer is usually the only buyer for these.
Vacant house: Why vacant houses in North Texas get expensive fast (vacancy insurance, code mowing liens, break-ins, frozen pipes), and how a direct sale ends the carrying costs.
Cash offer vs. listing: When a direct as-is sale beats listing with an agent, when it doesn't, and the one calculation to do before you decide: net to you after repairs, time and risk.
Avoiding scams: How to tell a legitimate as-is buyer from an equity-stripping scheme or a wholesaler who won't say so. Built from Texas Department of Insurance fraud guidance and Texas's wholesaling disclosure law.

Sources

Texas Department of Insurance: Seller impersonation fraud

Get a written, no-obligation offer within days

You get a call within 24 hours, usually the same day. One local buyer looks at the property as it is and gives you a written offer with a closing date. No repairs, no showings, no commission, no fee to you, and no list of companies calling. Buyers in this network typically pay the closing costs; the written offer spells out exactly what they cover.

1. Tell us the address, the property type and the situation. Two minutes.
2. You get a call within 24 hours. Your request goes to one North Texas buyer, not to a list.
3. They walk the property once and put the offer in writing. Take it, or take it to an agent and compare.

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Property address ZIP What's the situation Property type When would you like to close? Anything else worth knowing

A cash as-is offer is below full retail value. We say that up front because the buyer will too.

DFW Direct Home OfferIndependent referral service

Plain answers about selling North Texas real estate as-is, in 13 counties, and one introduction to a local buyer when you want a written offer.

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DFW Direct Home Offer is an independent referral service, not a home buyer, broker, or agent. We don't make offers, hold funds, or handle closings; any offer, contract, and closing are between you and the independent buyer we connect you with, through a title company you choose. That buyer may buy the property or assign the contract, and Texas law requires them to tell you which. Nothing here is legal, tax, or financial advice.