Childress County, Texas Tax Sales: How Redeemable Deeds Create Opportunity for Investors

Tax delinquent property sales can feel scary, but they let you buy homes for much less money. In Texas, these sales follow state rules instead of county rules. Knowing the state laws is important for success. 

Childress County is a small place in Texas with about 6,664 people. The county seat is Childress. This guide will explain how tax sales work there, answer common questions, and give helpful tips for buyers.

Overview of Tax Deed Investing in Childress County

In Texas, if you don’t pay your property taxes, the county can go to court. They can sell your property at a public auction. The person who wins the bid gets something called a redeemable deed. This does not mean they own the property right away. The original owner has about six months to pay back what they owe. They need to pay all late taxes and a little extra fee to get their property back.

Important Details About Childress County Tax Sales

Childress County and Its Unique Features

Childress County is a special place in Texas with lots of open land and farms. The area is about 714 square miles, and the main town is called Childress. It has a motto that says “Gateway to the Panhandle,” which means it’s an important spot for travellers. 

The county has a small population of around 6,664 people, with most living in the city of Childress. The population was much larger a long time ago, which makes it easier for people to find affordable land now.

Visitors can see interesting places like the old courthouse and enjoy parks. The area is great for outdoor activities like fishing, hunting, and looking at stars.  

The roads in Childress County are busy, making it easy for people to check out properties. Farming, especially cattle and crops, is a big part of the local economy. Recently, the county has started to use wind and solar energy, too.

People here enjoy being outside and celebrating events like the rodeo, and the friendly vibe makes it a nice place for families and retirees.

Why Childress County Is Attractive for Tax Investors

High Returns with Relatively Low Risk

In Texas, people can invest in properties using something called redeemable deeds. If the owner pays back the money within the first year, the investor gets a bonus of 25% on what they paid. If the owner takes longer and pays back in the second year, that bonus goes up to 50%. 

This money isn’t really “interest” like you might think. It’s a penalty added to the total price of the property. For example, if someone invests $10,000, they could earn between $2,500 and $5,000 in just a year. It’s a pretty safe investment because it’s backed by the real estate itself.

Compared with tax lien certificates in other states, Texas redeemable deeds offer both a premium and the opportunity to obtain full ownership of the property if the owner does not redeem. Since Childress County is small, there may be fewer bidders and more opportunity to acquire property at or near the tax‑owed amount.

Auction Process: How the Sale Works

1. Notice of Sale: At least 21 days before the auction, the sheriff or constable posts a notice of sale online, in the local newspaper and at the courthouse. The notice lists each property, its legal description, the amount of taxes owed and the scheduled sale date.
   
2. Registration: To bid, you must register before the sale. For in‑person auctions, registration occurs on the courthouse steps just before the sale. Bring valid ID and a cashier’s check or cash for your maximum bid. Online auctions require you to register through the platform (such as Bid4Assets or MVBA) at least 24 hours beforehand.
   
3. Bidding: The sale usually begins at 10 a.m. Central Time and is conducted by the sheriff or constable. Bidders call out their offers, and the property goes to the highest bidder. The minimum bid equals the taxes, penalties and court costs, or the property’s market value—whichever is lower.
   
4. Payment: The winning bidder must pay immediately after the auction. Cash or certified funds are required. Failure to pay results in the property being re‑offered.
   
5. Redeemable Deed Issued: After payment, the county issues a deed. The owner may redeem the property during the statutory redemption period by paying the delinquent taxes, costs and the 25 % or 50 % premium. If not redeemed, the investor receives a clear title.
   

Expected Returns and Investor Participation

Returns come from either collecting the redemption premium or acquiring the property. Investors who purchase properties that are later redeemed earn the statutory premium; those who end up with the property may realize higher returns through resale, rental or development. Texas law does not restrict foreign or out‑of‑state investors, so individuals and companies from anywhere can participate.

Due Diligence

What Due Diligence Entails

Doing your homework is critical. Here’s what smart investors do before bidding:

• Title research: Confirm whether there are senior liens or mortgages. Tax deeds in Texas do not extinguish certain liens (for example, IRS liens). A title search can uncover issues.
  
• Property inspection: Visit the property to assess its condition and location. Some properties are vacant lots; others may have structures in disrepair. Remember that you cannot legally enter a property before redemption, so inspection is from the road.
  
• Valuation: Compare the market value to the minimum bid (taxes owed). Overbidding reduces your return.
  
• Redemption period: Determine whether the property is a homestead or agricultural use (two‑year redemption) or a standard property (six‑month redemption).
  

Risks of Skipping Due Diligence

Skipping these steps can lead to unpleasant surprises: existing liens can eat into profits; the property may be landlocked or contaminated; or the owner may redeem just after you spend money on improvements, leaving you with only the premium. Proper due diligence mitigates these risks.

Over‑the‑Counter Purchases

If nobody bids on a property at the auction, it might get removed and kept safe by the county. Some counties sell these properties directly instead of having another auction. Investors can buy them by reaching out to the tax office. They need to make a bid, usually for the amount of taxes that are owed, and then wait for the office to say yes or no. 

The good thing is there’s no competition when bidding. The time for owners to claim their property back and any extra costs still matter. What you find can be different in each county, so it’s a good idea to call the Childress County tax office to ask if there are any properties available.

Economic and Real Estate Factors

Childress County’s economy remains tied to ranching and agriculture, so property values tend to be modest compared with urban Texas markets. The median home value in the city of Childress is below the statewide average (according to online real estate listings). For investors, this means the cost to acquire tax deeds is often low. Meanwhile, the county’s location on major highways promotes travel and commerce, which can support future growth. Renewable energy projects may also drive land demand as wind farms expand across the Panhandle.

Pro Tips for Success

• Arrive early and bring funds: In‑person bidders should arrive at the courthouse well before 10 a.m. to register and secure a spot near the auctioneer. Bring cashier’s checks in various denominations so you can pay the exact amount.
  
• Check notices frequently: Sale lists can change up to the day of the auction (properties may be redeemed or lawsuits settled). Monitor the county website, local newspaper and auction platform for updates.
  
• Stay organized: Keep a spreadsheet of properties, taxes owed, assessed value, redemption period and notes from your inspection. This helps you quickly compare opportunities.
  
• Consider unsold properties: Over‑the‑counter purchases can be profitable, but verify title issues first.
  
• Network with locals: Local real estate agents, attorneys and investors can provide insights on neighbourhoods and potential pitfalls.
  

Frequently Asked Questions

2. Do I need to register?
Yes. Bidders must register before the sale. In‑person registration occurs at the courthouse immediately before the auction. Online platforms require registration at least 24 hours in advance.

3. What is the redemption period?
Most properties have a six‑month redemption period, but homestead or agricultural properties allow two years.

4. How much money do I need?
The minimum bid equals the back taxes, interest, penalties and costs or the appraised value, whichever is lower. You must pay immediately after winning the bid.

5. Can non‑residents bid?
Yes. Texas does not restrict bidders by residency. Anyone with proper identification and payment can participate.

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

Need a Hand?

Thinking about tax-sale investing in Childress County? Start by exploring the Auction Calendar for current listings. Learn with our free resources, and if you’d like to walk through the process or ask questions, Book a call with one of our knowledgeable experts.

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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