Last Updated on September 7, 2025
Table of contents
- How to Perform Basic Title Checks
- How Can You Avoid Mistakes With Property Labels and Cause Numbers?
- Checklist for Verifying Auction Listings
- Why Should You Start With a Large Pool of Properties?
- Do You Need a Team to Handle Multiple Precincts at Large Auctions?
- What Are Common Pitfalls in Tax Deed Investing?
- Frequently Asked Questions
Attending a tax deed auction can be exhilarating, but a lack of research can turn a bargain into an expensive mistake. In this guide we share our experience from a recent Harris County auction. We started with about 100 properties, did careful due diligence, and walked away with several deals. The lessons below—drawn directly from that day—will help you avoid common pitfalls.
Why Is Title Research Essential?
Thorough title research is the most important step you can take before raising your paddle. Tax deed auctions transfer ownership of the property, but outstanding liens or mortgages may not be erased If a mortgage holder isn’t properly notified, they can still pursue payment later. Checking the title tells you who has a legal interest in the property and whether the county met all notification requirements.
During our auction preparations we received a list of final properties along with title details. One house looked promising; we were ready to bid up to $45 000. When we reviewed the title report, we discovered the bank hadn’t been notified. According to an overview by CoreVest, any outstanding liens or mortgages attached to a property can survive the sale if proper procedures aren’t followed We removed this house from our list. The winning bid eventually reached $50 000, but the buyer may now face a mortgage claim that won’t be wiped away. That risk is entirely avoidable with diligent title research.
How to Perform Basic Title Checks
- Obtain the official list:
Contact the county tax office for the final list of properties and any available title reports.
- Verify notification
Make sure all lienholders (banks, HOA, county) were served notice. A simple oversight can invalidate the sale.
- Look for clouds on the title
Unpaid mortgages, mechanic’s liens and other encumbrances are red flags.
- Consult professionals
: A title company or attorney can help spot problems you might miss
How Can You Avoid Mistakes With Property Labels and Cause Numbers?
We noticed another potential trap: mislabeled properties. One item on our list had the correct cause number but an incorrect address. If we hadn’t double‑checked, we could have bid on the wrong parcel. Legal errors and administrative mistakes are common; the CoreVest article warns that minor errors can invalidate a tax deed and lead to ownership issues
During the auction, we approached a county official to clarify the mismatch. If your county holds multiple precinct sales simultaneously, ask officials about any inconsistencies. Don’t assume every entry on the list is correct. When in doubt, skip the property—there will always be other opportunities.
Checklist for Verifying Auction Listings
| Task | Action |
| Confirm cause number and address | Match the legal description to the physical location on maps and county records. |
| Review maps and photos | Drive by the property if possible or use online mapping tools. |
| Talk to county staff | Seek clarification on discrepancies before bidding. |
| Document everything | Keep copies of notices, research notes and communications. |
Why Should You Start With a Large Pool of Properties?
A common mistake is attending the auction with only a handful of properties in mind. Properties can get bid up too high or fall off the list because of title issues, unpaid homeowner association dues or occupancy problems. We began with about 100 prospects, visited roughly 60, and narrowed it down to 44 after accounting for HOA obligations. By auction day we had 35 viable properties. That gave us options when certain items went above our price limit.
The CoreVest guide emphasizes creating a bidding plan and sticking to a maximum purchase price based on research When you start with a small pool, you might feel pressured to overpay. Conversely, a robust list lets you walk away if bidding gets too fierce.
Do You Need a Team to Handle Multiple Precincts at Large Auctions?
In Harris County eight precincts hold auctions at the same time. Without help, it’s impossible to monitor them all. If you attend alone, limit yourself to one or two precincts and make sure you understand their schedules. Better yet, bring a friend or partner. Teaming up allows you to cover more ground and combine funds for bigger opportunities.
During the sale we stationed team members in different precincts, tracked bidding, and communicated by phone. That coordination helped us secure four post‑auction deals and one pre‑auction contract. When you’re starting out, partnering with more experienced investors can also offer invaluable guidance.
Bonus Tip: Can Pre‑Auction Deals Save You Money?
Occasionally property owners will settle their tax debts or negotiate a sale before the auction. These pre‑auction deals may involve paying off the delinquent taxes and taking ownership directly from the owner. We closed one such deal before the sale, which saved us time and competitive bidding. If you find a property that is likely to be redeemed or is still owner‑occupied, consider contacting the owner before the auction. Always use a legal professional to draft any agreements.
What Are Common Pitfalls in Tax Deed Investing?
According to industry experts, tax deed investors face several risks beyond the purchase price:
- Outstanding claims: Mortgages or other liens may remain if the county made notification errors
- Property conditions: Many tax deed properties are vacant or neglected. You may need to budget for repairs or demolition.
- Legal errors: Failure to follow proper legal procedures can invalidate a sale Consult with attorneys and review local statutes.
- Market swings: Fluctuations in real estate markets can affect resale value
- Hidden costs: Quiet title actions, title insurance and legal fees can add several thousand dollars to your total investment
Doing your research and consulting professionals are key. CoreVest recommends verifying property details, title status and market value before bidding That due diligence will help you form a sound bidding strategy and stick to it
Frequently Asked Questions
If a mortgage holder is not properly notified, the mortgage may survive the tax deed sale. The buyer could become responsible for the debt. Always verify that all lienholders received notice.
Most junior liens are wiped out, but outstanding taxes, HOA dues and unnotified liens can remain. Research each property carefully and consult legal professionals.
Counties typically require full payment immediately or within a short timeframe. Check your county’s rules and have certified funds ready.
Our step‑by‑step guide on how to pick properties for tax deed sales shows you how we evaluate neighbourhoods, property types and potential returns.
Yes. We discuss the attitude and perseverance needed in the #1 trait you need to make tax liens & deeds work.
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Call to Action and Free Resources
If you’re ready to start investing, check out our free mini‑course on buying tax deeds and liens. For personalized help, schedule a free call to discuss your goals. We also maintain an Auction Calendar with upcoming sales and a suite of free resources to help you accelerate your first deal.
