Learn to Invest in Cass County, Texas Tax Sale

Investing in tax foreclosure properties can be a smart choice. In Texas, counties sell these properties if taxes aren’t paid. The new owner gets the deed and can earn penalties if the former owner pays up. This guide covers Cass County in northeast Texas. 

It explains when and where tax sales happen, how to register, and the redemption rules. Always check with the county about sale dates, as they can change.

Important Details at a Glance

Item	Information & Links
Tax sale type	Redeemable tax deeds (not lien certificates). Deed goes to bidder, but owner can redeem within the set period.
Typical sale date & time	First Tuesday of each month, 10:00 a.m. If a holiday falls on Tuesday, sale moves to next business day. Example: Oct 3, 2023.
Registration requirements	No formal pre-registration. Show up at courthouse, sign in with sheriff/constable, present valid ID.
Registration period	Morning of the sale.
Auction location	North steps of Cass County Courthouse, 100 East Houston Street, Linden, TX 75563.
Redemption period	2 years for homestead/agricultural; 180 days for other properties.
Interest/penalty rate	25% penalty in first year (or within 180 days); 50% penalty in second year for homestead/agricultural.
Bid procedure	Premium bid (highest bidder wins). Minimum bid = taxes, interest & costs. Payment in full same day by cashier’s check/certified funds. No warranties.
Deposit	None for in-person sales. Online sales (if announced) may require ~5% deposit.
Redemption rights	Purchaser gets Sheriff’s/Constable’s deed. Owner can redeem by paying purchase price + penalty + costs.
More information	Angela Young, Cass County Tax Assessor-Collector. Tel: 903-756-5513. Fax: 903-756-7431. Email: [email protected].

Cass County’s Appeal for Tax Deed Investing

• Cass County is a quiet area in northeast Texas, known as “Music City Texas” because of its famous musicians like Don Henley and T-Bone Walker. There’s a theater for regular music concerts. The beautiful courthouse in Linden is old and historic, making it a charming spot for events. The county has many lakes and rivers, perfect for outdoor fun. 
• Investing in Texas here means buying property deeds, not just liens, which can lead to owning the land if the previous owner doesn’t pay. If they don’t reclaim it, investors can earn good money from the penalties set by the state. These returns are reliable and not affected by market changes, making them appealing to investors.
• Visitors like going to Atlanta State Park, the theater in Linden, the antique shops in Jefferson, and seeing where Texas, Arkansas, and Louisiana meet. These places attract tourists and can boost property values. 
• The county’s economy is based on timber, farming, and factories. The pine trees help support the lumber business, while cattle farming and crops are also important. Jobs in nearby Texarkana offer more opportunities in healthcare and logistics. With a stable population and industry, property prices are often low, which is good for people looking to invest.

Why Cass County Is an Appealing Tax‑Sale Market

Economic and Market Conditions

Compared with Texas metropolitan areas, Cass County offers lower acquisition costs for tax‑foreclosure properties. Many parcels sold at tax sale are vacant or rural, which limits competition. Investors who purchase land at a discount may hold it for timber production, hunting leases or future development. The county’s steady population and proximity to transportation corridors provide a buffer against drastic price swings. Although the area doesn’t experience rapid growth, the relatively stable market reduces volatility and risk for investors who are patient.

High Returns with Predictable Penalties

The fixed penalties mandated by Texas law mean investors know exactly what they will earn if the owner redeems. A 25 % return within six months or one year—without compounding—far exceeds typical bank interest rates. Should the owner fail to redeem, the investor acquires the property outright, potentially generating additional profit through resale or rental. Because the redemption premium is a penalty rather than interest, it is not affected by interest‑rate changes. For long‑term investors, this reliability can be attractive.

Bidding Process Explained

1. Sale notice: The county publishes a list of properties at least three weeks before the sale in a local newspaper and posts the notice at the courthouse. Notices include the minimum bid (the total taxes, interest, penalties and court costs).
   
2. Arrival: Sales occur on the first Tuesday of the month at 10:00 a.m. on the courthouse steps. Arrive early to complete any sign‑in procedures and review the list of properties.
   
3. Auction: The sheriff or constable conducts an open outcry auction. Bidders raise the price above the minimum bid until the highest bid is reached. Premium bidding means the highest dollar amount wins, and there is no bidding down of the interest rate.
   
4. Payment: The winning bidder must pay the purchase price in full immediately or by a specific time (often by 2 p.m.) on the day of sale. Acceptable forms include cashier’s check or cash. Cass County does not accept credit cards, and there is no financing.
   
5. Deed issuance: After payment, the sheriff or constable issues a Sheriff’s/Constable’s deed. The deed is recorded, starting the redemption period.
   
6. After the sale: The purchaser must pay property taxes that accrue after the sale and any fees not included in the original judgment. It’s essential to monitor the property for redemption requests. Should the owner redeem, the investor is refunded the purchase price plus the statutory penalty.
   

Maximum Potential Returns

Texas law sets the redemption penalty rather than an interest rate. For non‑homestead properties (commercial lots, vacant land or second homes), investors receive 25 % of the purchase price if the owner redeems within 180 days. For homestead and agricultural property, the penalty is 25 % if the owner redeems within the first year and 50 % if redemption occurs in the second year. Because these penalties are based on the purchase price, higher bids result in higher absolute returns, but overbidding can reduce the property’s relative value. Successful investors strike a balance between winning the property and maintaining a cushion for redemption.

Open to All Investors

Texas does not restrict participation in tax‑foreclosure sales to residents. Any individual or company—domestic or international—may bid as long as they comply with U.S. laws (e.g., no restrictions under OFAC sanctions). International investors should consult an attorney about taxation and reporting requirements but can participate by attending the auction in person or appointing an agent. Online auctions (if used) may require additional registration steps.

Understanding the Cass County Tax‑Sale Process

How the Auction Works

• Property research: Examine the legal description, location, zoning, access and potential liens. Properties may be occupied or encumbered; tax sales do not extinguish all liens.
  
• Attend the sale: Bring valid identification, cashier’s checks and a clipboard to note final bid amounts. Dress for the weather—the auctions are typically outdoors.
  
• Highest bidder wins: You’re buying the deed, not just a certificate, so be prepared to pay in full.
  
• No warranties: Properties are sold as‑is, and the county provides no title insurance. Buyers should conduct a title search and inspect the property from the street (entering private property without permission is prohibited).
  
• Redemption rights: Record your deed promptly and track the redemption period. Former owners must pay the statutory penalty and any additional taxes to reclaim the property.
  

Importance of Due Diligence in Cass County Tax‑Sale Investing

What Due Diligence Entails

Performing due diligence means investigating properties before bidding. Key steps include:

• Title search: Identify mortgages, liens, easements or municipal code violations. Tax sales may wipe out junior liens but not federal tax liens or property‑owners’ association fees.
  
• Property inspection: View the property from the street to evaluate its condition. Look for structural damage, illegal dumping or occupancy. Do not trespass.
  
• Zoning and land use: Check with the county’s planning department to ensure your intended use (residential, commercial, agricultural) is permissible.
  
• Market analysis: Compare assessed values with recent sales. An unusually low minimum bid could signal problems like poor access or environmental issues.
  
• Budgeting: Prepare funds to pay the full bid amount and subsequent property taxes. Determine how long you can hold the property if it is not redeemed.
  

Risks of Skipping Due Diligence

Skimping on research can lead to costly surprises. You could acquire a landlocked lot, a property with a collapsing building or one encumbered by substantial liens. Since tax deeds convey property as‑is and without warranties, you must accept the property’s physical and legal condition. Failing to budget for redemption refunds may strain cash flow if multiple owners redeem. For these reasons, careful research is indispensable.

Buying Over‑the‑Counter (OTC) Deeds in Cass County

If a property doesn’t sell at auction, it can be taken off the market and sold directly to buyers. This is called over-the-counter (OTC) sales. People who are interested can get in touch with the county’s tax lawyers to buy these properties at the lowest price. When you want to buy an OTC property, you usually need to send an offer to the law firm or county.

You will have to pay the full price right away and then wait for the deed to be processed. Buying OTC properties has its perks. There is no bidding war, so you know the price will stay the same. Still, these properties might not be as nice. You can sometimes find OTC lists from firms like Perdue Brandon Fielder Collins & Mott (PBFCM) or Linebarger Goggan Blair & Sampson (LGBS)

Pro Tips for Cass County Tax‑Sale Investors

1. Arrive early and bring multiple cashier’s checks. If you plan to bid on several properties, carry a range of check amounts so you can pay your winning bid quickly without needing change.
   
2. Use a portable chair and umbrella. Courthouse steps can get crowded; comfort improves focus.
   
3. Network with local investors. Regular attendees may offer insights on neighborhoods, quiet title processes and resale strategies.
   
4. Budget for legal fees. Obtaining clear title may require a quiet title action. Factor attorney costs into your expected return.
   
5. Track redemption deadlines. Set calendar reminders for when redemption periods expire so you can begin property improvements or marketing promptly.

Conclusion

Cass County, Texas, is a good place for anyone wanting to invest in tax foreclosure properties. They hold auctions on the first Tuesday of every month at 10 a.m. At these auctions, people can bid on deeds that can be bought back. The laws in Texas set fixed penalties, which means you can expect to earn about 25% for most properties and up to 50% for homes and farms.

The market in Cass County isn’t very big, but it has low prices to buy properties. This can attract both new and experienced investors. Keep in mind that every property is sold as-is. So, it’s really important to do your homework on any property you’re interested in.

By following the rules and staying updated through county announcements and official contacts, you can feel more confident when participating in Cass County’s tax sales

Frequently Asked Questions (FAQs)

When are Cass County tax sales held? Cass County follows Texas law, holding tax sales on the first Tuesday of each month at 10 a.m. unless the date is a holiday, in which case the sale occurs the following business day.

Is registration required? For in‑person sales, there is no pre‑registration. Arrive early to sign the attendee list and present identification. Counties that move auctions online will require registration and a bid deposit.

How long is the redemption period? Homestead and agricultural properties may be redeemed within two years, while other properties have a 180‑day redemption.

What happens if the owner redeems? The investor receives the purchase price plus the statutory penalty of 25 % (and 50 % in the second year for homestead/agricultural properties).Are there risks in tax‑sale investing? Yes. Properties are sold as‑is and may contain defects or liens. Due diligence is essential to avoid purchasing undesirable property.

Useful Links

• Auction Calendar
• How to Profit from Texas’s Redeemable Deeds
• Let’s talk about redeemable tax deeds and how you can profit from them!
• Discover Tax Deeds and how you can find property for as little as $50! 
• Learn How to maximize profits at the Texas Tax Sales

Start your investment journey in Cass County by visiting our Auction Calendar. You’ll find upcoming listings and important details. Learn with our free resources, and when you’re ready to move forward, Book a call and we’ll help you map out your next steps.

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About Dustin Hahn

Dustin Hahn is a Tax Lien & Deed investor with over 22 years of experience and hundreds of deals under his belt. He created Tax Lien School.com to help you buy Tax Deeds up to 90% off mortgage free and earn up to 36% ROI with Tax Liens. This site was voted the “Most Useful Resource” for new investors. Dustin’s YouTube Channel is the #1 Channel on Tax Liens & Deeds with over 98,000 Subscribers and 3600 videos to help you start. “The Best Time To Start Real Estate Investing Was 20 Years Ago, The Second Best Time Is TODAY!”

20+yrs

5–10deals/mo

2009TLS founded