Hill County, Texas Redeemable Tax Deed: Investor’s Guide to Tax Sales

Introduction to Hill County and This Guide

Hill County is a small rural county between Dallas and Waco in Central Texas. Its county seat, Hillsboro, is famous for its restored 1890s courthouse and friendly small‐town atmosphere. The county is close to major highways and airports, yet retains wide open spaces, farms and lakes. This guide explains how Hill County conducts its tax foreclosure auctions. You will learn when and where the sales occur, who runs them, what you must do to register, and the redemption rules that apply in Texas. Use this information as a starting point and always verify details with official sources.

Brief Overview of Hill County’s Tax Sale Process

Texas does not sell tax lien certificates. When property owners fall behind on taxes, the county files a lawsuit, obtains a judgment and orders the property sold to recover unpaid taxes. Investors purchase a redeemable tax deed at public auction. Unlike a traditional deed sale, Texas allows the original owner to redeem the property after the sale by paying the purchase price plus a redemption premium. Successful bidders receive a Sheriff’s Deed, which gives possession but does not guarantee title. Because it is a redeemable deed, investors must wait through the statutory redemption period before gaining clear title.

Important Details (Table Form)

Fun Facts About Hill County

• Hill County’s population is about 36,664 people according to Data USA. The median age is 40.8 years and median household income is $63,147.
  
• The county lies on the Brazos River and includes parts of Lake Whitney. The city of Whitney calls itself the “Getaway Capital of Texas,” offering boating, fishing and camping on the lake.
  
• Hill County sits on Interstate 35 between Dallas, Fort Worth and Waco, giving local manufacturers quick access to major markets. It is served by Hillsboro Municipal Airport and is within an hour of Dallas/Fort Worth International Airport.
  
• Agriculture and manufacturing are major industries. The fertile soils support crops and livestock, while Hillsboro Industrial Park hosts manufacturing firms. Unemployment in Hill County remains lower than the Texas average.
  
• Hillsboro is known for its 1890 Hill County Courthouse, a striking Second Empire–style building that was restored after a devastating fire in 1993. The courthouse square features antique shops and local cafés.
  

Attractions & Economic Highlights

Hill County has several attractions that make it appealing to residents and visitors. Lake Whitney State Park on the eastern shore of the lake offers boating, fishing, swimming and camping. Hillsboro boasts the Texas Heritage Museum at Hill College, which preserves military history and local artifacts, and the quirky Roadside America Museum, filled with 1950s memorabilia. Outdoor enthusiasts enjoy Lake Whitney for water sports and Hillsboro City Park for family picnics.
The county’s transportation network includes Interstate 35, U.S. Highway 77 and State Highway 22. Hillsboro Municipal Airport serves general aviation, while Waco Regional Airport and Dallas/Fort Worth International Airport are nearby. Rail service by Union Pacific and BNSF passes through the county.
Hill County’s economy revolves around manufacturing, agriculture and tourism. Manufacturing companies benefit from easy highway and air access. Agriculture remains important, with cattle, corn and cotton grown on rich Blackland Prairie soils. Tourism thrives around Lake Whitney and events such as Hill County Fair and Balloon Fest. The combination of affordable land, strategic location and diverse economy contributes to steady real estate demand.

Why This County is Ideal for Tax Deed Investors

Hill County offers a stable real estate market with modest population growth and a median property value around $163,100. The county’s proximity to Dallas–Fort Worth and Waco makes properties attractive for commuters and retirees. Redeemable deeds in Texas provide high returns with limited risk because successful bidders receive a sheriff’s deed and earn a 25 – 50 percent premium if the property is redeemed. Investors who do their homework can secure affordable properties in a growing region and either hold for appreciation or rent them out after the redemption period.

Auction Process for Tax Deed Sales

Tax foreclosure sales in Hill County follow the rules set by the Texas Tax Code. Properties with delinquent taxes are ordered sold by court judgment. The sheriff or a constable conducts the sale on the first Tuesday of the month, between 10 a.m. and 4 p.m. Central Time, on the east steps of the courthouse. If the first Tuesday falls on New Year’s Day or July 4, the sale occurs on the following Wednesday.

How the Auction Works

1. Notice and Listing: The county posts a list of properties to be sold with the minimum bid (court judgment amount). Minimum bid sheets are available at the tax office or online.
   
2. Registration: Bidders must register with the auctioneer before the sale begins and present a valid driver’s license or government ID. Some online auctions require registration at least 24 hours before bidding.
   
3. Bidding: The auctioneer reads each property’s legal description and minimum bid. Bids are made orally, and the highest bidder wins. Bids cannot be less than the opening amount.
   
4. Payment: Successful bidders must pay the full purchase price immediately in cash or cashier’s check payable to the Hill County Tax Office. Failure to pay results in penalties, including liability for 20 percent of the property’s value.
   
5. Sheriff’s Deed: Purchasers receive a Sheriff’s Deed without warranties. The deed gives the right of possession but does not guarantee title.
   

Redemption Period: The original owner may redeem the property by paying the purchase price plus costs and a 25 percent premium within the first year or 50 percent in the second year. During the redemption period, the purchaser may possess and improve the property, but cannot evict lawful occupants until after redemption rights expire.

Maximum Potential Returns and Expected Returns on Hill County Tax Deed Certificates

Texas redeemable deeds offer lucrative returns. If the owner redeems the property within the first year, the investor receives 25 percent of the aggregate cost (purchase price, deed recording fee, taxes paid and maintenance costs). If redemption occurs during the second year, the premium increases to 50 percent. On non‑homestead properties, the redemption period is only 180 days, meaning investors may gain clear title sooner. Compared to typical bank certificates of deposit or bonds, these rates are extremely high. However, returns depend on the owner’s decision to redeem. If the property is not redeemed, the investor holds the real estate and can profit from rents or resale.

Open to All Investors / Foreign Investor Participation

Hill County’s tax deed auctions are open to local and out‑of‑state investors. There are no residency requirements for bidders. Foreign investors may participate, but they must comply with U.S. laws on property ownership and taxation. Most auctions in Texas are conducted in person, although some counties use online platforms operated by law firms such as MVBA or GovEase. Online auctions require bidders to register and submit payment information in advance. Because ownership transfers occur at a public auction, international buyers should consult a U.S. attorney or tax professional to understand legal obligations. The Texas market is attractive to foreign investors due to relatively low property prices, strong population growth and potential returns from redemption premiums.

What Due Diligence Entails

Steps for Due Diligence

Successful tax deed investing requires thorough research. Before bidding, investors should:

1. Review the legal description and maps. Visit the property or use online maps to locate it and evaluate its surroundings.
   
2. Check title records. Search for liens or encumbrances such as mortgages, IRS liens, HOA fees, demolition or mowing liens. Tax deeds do not extinguish all liens.
   
3. Inspect zoning and condition. Confirm that the property’s zoning allows intended use. Inspect for environmental hazards or demolition orders.
   
4. Estimate value. Compare the minimum bid to market value. Hill County property values average $163,100, but values vary widely across tracts.
   
5. Budget for taxes and maintenance. If you win the bid, you must pay future taxes and maintain the property during the redemption period.
   

Risks of Skipping Due Diligence

Skipping research can lead to costly mistakes. Some properties may be landlocked, contaminated or located in floodplains. Others may have hidden liens for demolition, mowing or maintenance fees. Title insurance is often difficult to obtain on tax deed properties. Without due diligence, investors risk purchasing property worth less than the minimum bid or facing expensive legal challenges.

Why Hill County is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

Hill County’s position along Interstate 35 provides access to Dallas–Fort Worth and Waco, making it attractive for manufacturing and logistics companies. The county has a stable labor force and a lower unemployment rate than the state average. Texas has no state income tax, which benefits investors when reselling or renting properties. The cost of living is lower than in major cities, yet property values have grown steadily, making the area suitable for long‑term appreciation.

Real Estate Market Overview

With a median property value of about $163,100 and a homeownership rate of 76.4 percent, Hill County offers affordable entry points for investors. Proximity to Lake Whitney and the commuting distance to Waco and Dallas attract retirees and first‑time buyers. New housing developments and industrial expansions are gradually increasing demand. Investors who acquire tax deed properties and hold them beyond the redemption period can benefit from resale profits or steady rental income.

Conclusion

Hill County holds redeemable tax deed auctions on the first Tuesday of each month at the Hill County Courthouse. Registration with a valid ID is required before the sale. Winning bidders must pay the full purchase price immediately with cash or cashier’s check. The redemption period is 180 days for most properties and two years for homesteads and agricultural land. Investors earn a 25 percent premium if the owner redeems within the first year and 50 percent if redeemed in the second year. Hill County’s growing economy, affordable real estate and strategic location make it a promising market for tax deed investors. Nevertheless, due diligence is critical; investors should inspect properties, check for liens and understand redemption rules before bidding.

Pro Tips

• Arrive early. Registration occurs before the sale starts. Arriving at least thirty minutes early ensures you have time to register and review last‑minute updates.
  
• Bring multiple cashier’s checks. Since you must pay the entire bid at the sale, prepare several cashier’s checks in different denominations. This helps you adjust quickly if your winning bid varies from your budget.
  
• Focus on non‑homestead properties. These properties have a shorter 180‑day redemption period, meaning you gain clear title sooner.
  
• Check zoning and access. Some rural tracts may not have road access or may be zoned only for agriculture. Always verify access and permitted uses before bidding.
  
• Plan for quiet title action. After the redemption period ends, you may need to file a quiet title suit to obtain insurable title. Budget for legal fees and time.
  

FAQs

1. How long does it take to receive a sheriff’s deed?
   The sheriff issues the deed soon after full payment is received. Recording the deed in the county clerk’s office establishes your right of possession.
   
2. What happens if the property has occupants?
   Texas law allows purchasers to possess the property during the redemption period, but eviction may require a separate legal process. Consult an attorney before attempting to remove occupants.
   
3. Can I finance my bid?
   No. Hill County requires payment in cash or cashier’s check at the sale. Private financing arrangements must be secured before the auction.
   
4. Are there additional liens or fees?
   Some tax deed properties have liens for mowing, demolition or association fees. These liens survive the sale and become the buyer’s responsibility.
   
5. How can I sell or refinance after the redemption period?
   To obtain insurable title, investors often file a quiet title suit after the redemption period. Once the court confirms title, you may sell or refinance the property through traditional lenders.
   

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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Visit our Auction Calendar to browse lore our free resources to build it through, Book a call with us today

Thinking about starting in Hill County? Visit our Auction Calendar to view the upcoming tax-sale properties. We’ve also put together free resources to walk you through the steps. For more direct help and smart strategy tips, book a call with a knowledgeable expert today.

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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