Last Updated on August 20, 2026
Estimated reading time: 2 minutes
Author: Jessa May Bautista
Reviewed by: Josh Blanchard
Fact Checked by: Jack Aldous
Texas and Georgia: what makes them different? They aren’t classified as lien states, nor are they deed states. Instead, they are often referred to as the Hybrid States.
So, what does that mean for investors?
Every February we review our progress on our New Year goals. If you’ve fallen off the wagon, now is the perfect moment to re‑engage. Staying consistent with your investing plan is critical; in our experience, the people who stick with tax liens and deeds eventually hit life‑changing deals.
Table of contents
- What Is a Tax Lien State?
- What Is a Tax Deed State?
- How Are Texas and Georgi a Different From Traditional States?
- Comparing Lien, Deed and Hybrid States
- How Does a Hybrid Auction Work in Practice?
- Why Do Hybrid States Offer Attractive Returns?
- Case Studies From Our Experience
- When Are Hybrid State Auctions Held?
- How Can You Minimise Risk?
- Frequently Asked Questions
What Is a Tax Lien State?
A tax lien state allows investors to buy the unpaid property tax debt, not the property itself. The investor buys a tax lien certificate, earns the stated interest if the owner redeems, and may later foreclose if the lien remains unpaid. The property owner must repay that amount plus interest or penalties set by state law.
If the owner does not pay within the redemption period, the investor may be able to start foreclosure or another legal process to acquire the property. Interest rates, penalties, and redemption periods vary by state.
What Is a Tax Deed State?
A tax deed state is a state where an auction winner gets the property deed and takes ownership after the sale. There is usually no post sale redemption window for the former owner.
How Are Texas and Georgia Different From Traditional States?
Texas sales occur on the first Tuesday of each month, while Georgia county sales are held periodically and are often monthly. Check the county auction list before bidding.
