Hall County, Texas Redeemable Tax Deed: A Beginner‑Friendly Guide to Tax Sales

Introduction

Hall County is a small agricultural community in the Texas Panhandle. The county seat, Memphis, sits along U.S. Highway 287 about ninety miles southeast of Amarillo. Although the population is only about 2,800 residents, the county still collects property taxes. When owners fall behind on these taxes, their property may be sold at a public auction. This guide explains how Hall County conducts its tax sales, what investors should know about Texas’ redeemable tax deed system, and why the area’s rural character and high statutory penalty can make these sales attractive for long‑term investors.

What Is a Redeemable Tax Deed in Texas?

Texas uses a redeemable tax deed system rather than pure tax lien certificates. At the tax sale, the winning bidder receives a sheriff’s deed to the property subject to the former owner’s right of redemption. The former owner can redeem non‑homestead property for up to six months by paying the taxes, fees and a hefty 25 percent penalty. Homestead, agricultural, and mineral properties can be redeemed for up to two years. If the owner fails to redeem during the statutory period, the investor’s title becomes fee simple. Because Texas law imposes a steep penalty rather than an interest rate, these deeds offer the potential for strong returns if the property is redeemed.

Important Details (summary table)

Detail	Hall County Information
Tax Sale Type	Redeemable tax deed (hybrid). Investor receives a sheriff/constable deed subject to redemption.
Typical Sale Date	First Tuesday of each month. Sales must occur between 10 AM and 4 PM at a location set by the Commissioners’ Court.
Sale Time	Most counties, including Hall, begin at about 10 AM Central Time. The sale must finish before 4 PM.
Registration	Bidders may be required to register with the Hall County tax assessor–collector and obtain a statement of no delinquent taxes before the sale.
Payment/Deposit	Auctions are cash‑only; most counties accept cash or cashier’s checks. Payment is due immediately after the auction. Some counties require a deposit, though Hall County usually collects full payment by 4 PM.
Redemption Period	180 days for non‑homestead property; 2 years for homestead, agricultural or mineral property.
Interest/Penalty	Owner must pay back taxes plus a 25 % penalty during the first year and 50 % in the second year for homestead property. There is no prorated interest.
Bid Procedure	Competitive auction. The minimum bid equals the lesser of the judgment amount (taxes, penalties and fees) or the appraised value. The property goes to the highest bidder.
Contact	Tax Assessor‑Collector: Teresa Altman, 512 Main Suite 5, Memphis TX 79245, phone 806‑259‑2125. Sheriff: Tom Heck, 101 South 9th Street, Memphis TX 79245, email [email protected], phone 806‑259‑2151.

Fun Facts About Hall County

• Historic ranching roots: In the late 1800s, Hall County was dominated by large cattle ranches like the JA and Quitaque ranches. Ranching remains an economic pillar, and cattle still outnumber people.
  
• Small population: The county has just under 3,000 residents, making it one of the least‑populated counties in Texas.
  
• Red River canyons: The Prairie Dog Town Fork of the Red River cuts through the county, creating scenic canyons and good grazing land.
  
• Agricultural economy: Wheat, cotton and sorghum grow on the county’s sandy loam soils. Many families operate small farms or work in agribusiness.
  

Attractions & Economic Highlights

Hall County offers quiet charm and outdoor recreation. Visitors enjoy local parks and museums in Memphis, along with nearby Caprock Canyons State Park (in adjacent Briscoe County) for hiking and wildlife watching. Transportation is simple: U.S. Highway 287 runs through Memphis, connecting the county to Amarillo and Wichita Falls. There are no commercial airports; most residents drive to Amarillo or Lubbock for flights. Economically, agriculture is the primary industry. Cattle ranching, cotton farming and grain sorghum production anchor the local economy. A few small manufacturing and service businesses support the farming community. Community life revolves around school sports, local fairs and church events. Residents enjoy hunting, fishing and open spaces.

Why Hall County Is Ideal for Tax Lien/Deed Investors

Hall County’s small population means tax auctions draw fewer bidders, which can lead to lower acquisition prices. Property values are modest, with the median property value around $80,200, so entry costs are accessible. The redeemable tax deed system imposes a 25 percent penalty on the delinquent owner in the first year and 50 percent in the second year, offering high returns with relatively low risk if the owner redeems. Because the properties are rural, investors may find acreage for farming, ranching or hunting. These factors combine to make Hall County appealing for investors seeking steady returns without fierce competition.

Auction Process for Tax Lien/Deed Sales

When property taxes become severely delinquent, Hall County files a lawsuit to obtain a judgment for unpaid taxes. Once the court issues an order of sale, the sheriff or constable schedules a public auction. Texas law requires sales to be held on the first Tuesday of the month between 10 AM and 4 PM. Hall County typically begins at 10 AM Central Time on the courthouse steps at 512 West Main Street in Memphis. Notices of sale are posted at the courthouse, on the county’s public notices page and in a local newspaper.

How the Auction Works

1. Registration and bidder eligibility: To bid, you may need to register with the Hall County tax assessor–collector. Some counties require a Statement of No Delinquent Taxes, which proves you do not owe property taxes in Texas. Contact the tax assessor’s office ahead of time to ask about registration deadlines.
   
2. Minimum bid: The sheriff announces each property and states the opening bid. The minimum bid is either the total judgment (taxes, penalties, interest and court costs) or the property’s appraised value, whichever is lower.
   
3. Bidding: The auctioneer calls for bids. Investors raise their hands or call out amounts until no higher bids are offered. The highest bidder wins.
   
4. Payment: Winning bidders must pay immediately. Most counties, including Hall County, accept cash or cashier’s checks only. Payment must be made by 4 PM on the day of sale. Failure to pay results in forfeiture and the property may be auctioned again.
   
5. Deed and redemption: The purchaser receives a sheriff’s deed with no warranty. The deed is recorded with the county clerk, which starts the redemption period. During this time the former owner can reclaim the property by paying the sale price plus penalties.
   

Possession: Investors are entitled to immediate possession, but if the property is occupied, they may need to negotiate a lease or pursue eviction through legal channels.

Maximum Potential Returns and Expected Returns on Hall County Redeemable Tax Deed Certificates

Returns from Texas tax deeds come from statutory penalties rather than interest. If a non‑homestead property owner redeems within six months, they must pay the investor 25 percent of the purchase price in addition to the taxes and costs. Homestead and agricultural properties may be redeemed for up to two years; the penalty doubles to 50 percent in the second year. These penalties are not prorated, so even a redemption after one day triggers the full 25 percent. That means a $5,000 investment could yield an extra $1,250 if redeemed in year one or $2,500 in year two. Because many owners redeem to save their homes, investors often collect these penalties quickly. If the property is not redeemed, the investor acquires the real estate, which can produce rental income or resale profit. The actual return depends on bidding competition, property condition and market demand.

Open to All Investors / Foreign Investor Participation

Texas law does not restrict participation in tax deed sales to residents; anyone who can legally contract in the United States may bid. Investors from other states or countries are welcome to participate. However, bidders must follow the same rules as local buyers: register with the tax assessor–collector, obtain a no‑tax‑due statement and pay in cash or cashier’s check. Out‑of‑state buyers should plan travel because Hall County holds live auctions at the courthouse. Alternatively, they can designate an agent or attorney to bid on their behalf. International investors should consider currency exchange rates and U.S. tax obligations. Because Texas allows foreign participation, Hall County offers global investment opportunities in a rural market where competition is light. The key is to perform thorough due diligence and understand local property laws.

What Due Diligence Entails

Steps Investors Should Take

Successful tax deed investing requires homework. Before the auction, inspect the property from the street to assess its condition and location. Review the county appraisal district’s records to estimate market value and verify acreage. Conduct a title search through the county clerk to identify any liens that may survive the tax sale; municipal liens, IRS liens and some mortgages can remain attached. Check zoning and access; many rural parcels lack road frontage or utility connections. Speak with neighboring owners to learn about flooding or environmental issues. Finally, budget for insurance, maintenance and legal fees, including the cost of quiet title action if you plan to sell or finance the property.

Risks of Skipping Due Diligence

Skipping due diligence can be costly. Some properties are landlocked, contaminated or already demolished. Rural tracts may require expensive septic and well installations. Outstanding liens can eat up profits or even exceed the purchase price. Without a title search, investors risk inheriting IRS liens or HOA dues that survive the sale. Failing to inspect could leave you with a burned‑out home that must be demolished. Always remember that the sheriff’s deed conveys no warranty; it is the buyer’s responsibility to understand what they are buying.

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

When a property does not sell at auction, it becomes struck off to the taxing entities. These parcels can be purchased over the counter (OTC) at the tax assessor–collector’s office. In Hall County, inquire with Teresa Altman’s office to obtain the list of strike‑off properties. Buyers must submit an offer (usually at or near the judgment amount) and pay in full. Closing occurs once the commissioners’ court approves the offer. Benefits of OTC purchases include a fixed purchase price and no bidding wars. Investors can take their time to research each parcel, making OTC deeds attractive for cautious buyers. Keep in mind that the redemption period still applies, so former owners can redeem within the statutory period.

Why Hall County Is a Top Choice for Tax Lien/Deed Investors

Economic and Tax Advantages

Hall County’s economy is anchored by agriculture. Cattle ranching and crop farming provide steady income, while low land prices keep entry costs affordable. The county’s median household income is about $46,728, and property values are modest. Taxes are low compared with urban counties, which reduces carrying costs if you end up owning the property. The 25 percent to 50 percent redemption penalty mandated by Texas law can produce high returns even on small investments.

Real Estate Market Overview

Hall County’s real estate market is largely rural. Homes in Memphis and Lakeview are inexpensive, and vacant land is plentiful. The homeownership rate is 75 percent, indicating a stable owner‑occupied base. Demand for rental housing is steady among farm workers and retirees. Because few investors target this market, competition at tax sales is often minimal. Investors can pick up acreage suitable for ranching, hunting or recreational use. Appreciation may be slow, but the acquisition cost is low, and the redemption penalties provide immediate cash returns.

Conclusion

Hall County, Texas offers investors a quiet, rural setting with potentially strong returns. Tax sales are held on the first Tuesday of each month, typically starting at 10 AM Central Time. Properties are sold at a live auction on the courthouse steps, and bidders may need to register and present a statement showing they owe no delinquent taxes. The high 25 percent penalty for redemptions creates attractive yields, and if the property is not redeemed, the buyer gains fee simple ownership after six months or two years depending on the property type. Hall County’s low property values and small population reduce competition, making it a compelling place to start investing in Texas tax deeds. As always, perform thorough due diligence and consult local officials before bidding.

Pro Tips

• Start small: Focus on one or two properties until you understand the process. Rural counties like Hall often have affordable parcels with little competition.
  
• Get registered early: Contact the tax assessor–collector several weeks before the sale to obtain any registration forms and the no‑tax‑due statement.
  
• Visit the property: Drive by each parcel to confirm its location, access and condition. Look for utilities, road frontage and signs of occupancy.
  
• Plan for redemption: Treat your bid as short‑term capital. Many owners redeem within months, so be prepared to receive the 25 percent penalty and move on.
  
• Budget for legal work: If a property is not redeemed, you may need to file a quiet title action to get title insurance and resell. Factor attorney fees into your calculations.
  

FAQs About Hall County Tax Deeds

1. What happens if there are other liens on the property? Some liens, such as federal tax liens or municipal fines, may survive the tax sale. Conduct a title search before bidding. If you become the owner, you must address any remaining liens.

2. Do I need to evict the occupant after purchasing a tax deed? The sheriff’s deed gives the purchaser immediate right of possession. However, if the property is occupied, you should negotiate a lease or follow Texas eviction procedures. Never attempt self‑help eviction.

3. Can I finance my purchase? Most counties, including Hall, require payment in cash or cashier’s check on the day of sale. Traditional financing is not available at the auction, but you can refinance later after obtaining the deed and quiet title.

4. How do I get clear title? A sheriff’s deed carries no warranties. After the redemption period ends, investors often file a quiet title lawsuit to remove any clouds and obtain title insurance. This process can take several months and may cost a few thousand dollars.

5. What condition are the properties in? Tax sale properties are sold as‑is. Some may be vacant land, while others could be abandoned homes needing repair. Always inspect the exterior before bidding and budget for potential renovation.

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

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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