Resale of Tax Foreclosed Properties
In 1991, the Galveston City Council, faced with many unused properties off the tax rolls, developed a policy for resale of tax foreclosed properties.
The goals of the policy include:
The speedy, economical return of unused, tax foreclosed properties to the tax rolls as productive properties.
The city and other taxing units became owners of property interests in these properties when they were not sold at tax foreclosure sales.
Section 34.05 gives procedural and pricing guidelines for the resale of properties by government entities. The result of a tax suit is a judgment of foreclosure which stipulates two important values relevant to tax resale: One is the value of the judgment, that is, the sum of taxes, penalties, interest and court costs; the other is the market value of the property as of the time of the tax foreclosure judgment. Under Section 34.05 the city may resell tax foreclosed properties without the consent of the other taxing entities having interests in the properties if the sale price is more than the lower of the two values started in the Tax Foreclosure Judgment. The city may sell tax foreclosed properties for less that the lower of the two amounts stated in the Tax Foreclosure Judgment if all other taxing entities give their consent to the sale at the lower price.
The city seeks to establish even more stringent resale procedures for tax foreclosed properties than those required by the tax law by adopting a policy for resale with the following characteristics:
Contact: Office of the Mayor, (409) 766-2103
The United States Conference of Mayors
J. Thomas Cochran, Executive Director
Copyright ©1996, U.S. Conference of Mayors, All rights reserved.