Lipscomb County, Texas Redeemable Tax Deed Sale

Introduction

Lipscomb County sits in the far northeastern corner of the Texas Panhandle. It is rural and has only a few small towns, with fewer than three thousand residents living across roughly nine hundred square miles of prairie and rangeland. The county seat is the tiny town of Lipscomb, which still uses the historic 1916 courthouse. Ranching and farming dominate the landscape, but the county also has petroleum production and wind‑energy resources. This article explains how Lipscomb County conducts tax sales and what investors should know.

What Is a Redeemable Tax Deed Sale?

Texas uses a redeemable tax deed system. When property taxes go unpaid, the county seeks a court judgment to foreclose the tax lien and then sells the property at public auction. The winning bidder receives a sheriff’s deed and takes possession of the property, but the former owner can redeem it by paying the bid amount plus a penalty within a limited period. Because the deed can be redeemed, investors often refer to these as “redeemable tax deeds.”

Important Details

Detail	Lipscomb County Tax Sale Information
Tax Sale Type	Redeemable Tax Deed: the property is sold at public auction subject to an owner’s right of redemption.
Typical Sale Date	First Tuesday of the month: Texas law requires sheriff’s sales to occur between 10 a.m. and 4 p.m. on the first Tuesday of each month. If that Tuesday is January 1 or July 4, the auction moves to Wednesday.
Redemption Period	Two years for homesteads or agricultural land; 180 days for other property: owners may redeem by paying the bid amount plus a 25 percent penalty during the first year or 50 percent during the second year.
Interest Rate / Premium	Texas statutes call the premium a redemption penalty rather than interest. For most property the former owner must pay the purchaser the amount bid plus 25 % within the first year and 50 % if redeeming in the second year.
Bid Procedure	Oral auction: bidding starts at the amount of the judgment for taxes, penalties, interest and costs. The highest cash bidder wins. Payment must be made with cash or cashier’s check by 4 p.m. on the day of sale.
Deposit	Proof of no delinquent taxes required: state law requires bidders to obtain a written Statement of No Delinquent Taxes Owed from the county tax office before the sale. Bidders must present this statement at registration and cannot register once the auction begins.
Registration	Registration occurs on the morning of the sale at the courthouse. Bidders show their statement of no delinquent taxes, sign in and receive a bidder number. Registration closes when the auction starts.
Sale Location	Sales are held on the courthouse steps at 105 Oak Street, Lipscomb, TX 79056 .
Contact	Tax Assessor‑Collector Raelene Copeland – P.O. Box 129, Lipscomb, TX 79056, phone 806‑862‑2911 . County Clerk Chrissy Dunn – 101 S. Main, P.O. Box 70, Lipscomb, TX 79056, phone 806‑862‑3091, email [email protected]  .
Updates	The county posts notices of trustee sales on the County Clerk page and on courthouse bulletin boards. Investors should contact the Clerk’s office or visit the county website’s public notices section for current listings .

Fun Facts About the County

• Small Population – Lipscomb County has fewer than three thousand residents. The county seat of Lipscomb is home to only a few dozen people.
  
• Agricultural Heartland – Ranching and farming dominate the local economy. The county has about 413,000 acres of rangeland, 164,000 acres of dry‑land farms and 20,000 acres of irrigated farmland, growing wheat, sorghum, corn, sunflowers, alfalfa and soybeans.
  
• Abundant Groundwater – Lipscomb County participates in the North Plains Groundwater Conservation District and benefits from the Ogallala Aquifer.
  
• Proximity to Other States – Residents are geographically closer to five other state capitals than to Austin, the Texas capital.
  
• Demographics – The county’s projected population is about 2,845 with a median age of 37.4 years. Median household income is around $71,442 and roughly 13 % of families live below the poverty line. White residents comprise 56 % of the population while Hispanic residents make up about 37 %.
  

Attractions & Economic Highlights

Lipscomb County is more than farmland and tax sales. The Wolf Creek Heritage Museum preserves the county’s history by showcasing photographs of early settlers, artifacts from tornadoes, and exhibits exploring immigration to the Texas Panhandle. The museum’s co‑directors are Rebecca Kells and Mary Wright. It is located at 13310 Highway 305 in Lipscomb, Texas and can be reached at 806‑852‑2123 or [email protected] . The museum holds annual heritage weekends and hosts genealogical resources.

Visitors can also enjoy outdoor activities along Wolf Creek, which flows across the county. The county’s broad skies and steady winds make it suitable for wind‑energy development. Transportation is limited to two state highways, SH‑15 and SH‑23, which connect the towns of Lipscomb, Booker, Darrouzett and Follett. Agriculture remains the backbone of the economy, with employment in farming, agribusiness, oil and gas production, public education and county government.

Why This County is Ideal for Redeemable Tax Deed Investors

With a sparse population and an economy anchored in farming, Lipscomb County has a stable property base. Farmland, ranches and oil leases contribute to steady tax revenues. Real estate prices remain relatively low compared with urban counties, allowing investors to acquire acreage at modest cost. The redeemable tax deed system adds another layer of security because owners have a short redemption window; investors earn high penalties (25 % or 50 %) if the owner redeems. For those seeking high returns with low risk, redeemable tax deeds in rural Texas can offer attractive yields compared with traditional investments. Small communities also mean less competition at auctions, allowing investors to purchase parcels at lower bids.

Auction Process for Tax Lien/Deed Sales

Lipscomb County follows the Texas Property Tax Code for tax foreclosure sales. Here is how the process works:

How the Auction Works

1. Legal Notice – When taxes remain unpaid, the county’s attorneys file suit for a tax lien foreclosure. The court orders the property sold at public auction. Notices of sale are posted at the courthouse and on the County Clerk’s website.
   
2. Registration – Prospective bidders must obtain a Statement of No Delinquent Taxes Owed from the tax assessor’s office. This form certifies that the bidder owes no taxes in the county and must be requested before the sale date. Bidders present the statement at registration on the morning of the auction and receive a bidder number. Once the auction starts at 10 a.m., no new registrations are allowed.
   
3. Bidding – The auctioneer (usually the sheriff or constable) calls each property in turn. Bidding is oral, and the starting bid is the amount of the judgment for taxes, penalties, interest and costs. In some resales the county may set a minimum bid lower than the judgment to attract buyers.
   
4. Payment – The highest bidder must pay the full purchase price by cash or cashier’s check by 4 p.m. on the day of sale. Failure to pay results in cancellation of the sale and liability for costs.
   

Deed & Redemption – The sheriff issues a deed without warranty. The former owner may redeem the property within the statutory period by paying the purchase price plus the redemption penalty of 25 % during the first year and 50 % during the second year. If not redeemed, the purchaser receives full title after the redemption period.

Maximum Potential Returns and Expected Returns on Lipscomb County Certificates

Texas law does not provide interest on the investment; instead, investors earn a redemption premium. If the original owner redeems within the redemption period, the purchaser receives the amount bid plus a 25 % penalty during the first year or 50 % during the second year. Because most redemptions occur within the first few months, investors can realize high yields relative to their investment. However, returns depend on redemption timing—if the property is not redeemed, investors obtain ownership and the return depends on resale value or rental income. Rural properties can be more difficult to liquidate but often come with low acquisition costs. Investors should evaluate each property’s potential resale value, access to utilities and market demand.

Open to All Investors / Foreign Investor Participation

Texas law allows both residents and non‑residents to participate in redeemable tax deed auctions. There are no restrictions on foreign ownership of real property. To bid, investors must obtain the Statement of No Delinquent Taxes, provide a cashier’s check or cash for payment, and follow bidding procedures. International investors appreciate the global investment opportunity because the redemption penalty offers predictable returns. However, foreign investors should be aware of currency conversion costs and should engage local counsel for due diligence and deed recording. Even though Lipscomb County is open to global participants, the low number of properties and remote location may reduce competition, making it attractive for investors seeking less crowded auctions.

What Due Diligence Entails

Steps to Perform Due Diligence

1. Research the Property – Verify the property’s location, acreage and zoning using the county appraisal district’s website or GIS maps. Drive by or hire a local agent to inspect the land and check for improvements, access, and any visible defects.
   
2. Check Title and Liens – Although tax deeds extinguish many liens, they do not wipe out IRS liens, state tax liens or property owner association assessments. Investors should obtain a title report and determine if any liens will survive the sale.
   
3. Evaluate Market Value – Compare the property to recent sales in the area. Consider potential uses such as farming, grazing, oil exploration or residential development. Consult real estate professionals familiar with the Panhandle market.
   
4. Understand Redemption Rights – Be prepared to hold the investment during the redemption period. If the owner redeems, you will receive the penalty but not the property. If not, you must pay taxes going forward and may need to quiet the title to obtain marketable ownership.
   

Risks of Skipping Due Diligence

Failing to research the property can lead to unpleasant surprises. Some parcels may be landlocked with no legal access, located in floodplains or subject to environmental hazards. Improvements may be dilapidated or uninhabitable. If the property is redeemed quickly, the return may be lower than expected once recording costs and taxes are considered. Skipping a title search may leave you responsible for liens that survive the sale. Careful due diligence helps investors avoid these risks and make informed bids.

Why Lipscomb County is a Top Choice for Tax Deed Investors

Economic and Tax Advantages

Lipscomb County’s economy is rooted in agriculture and energy, offering a stable tax base. Ranches and farms provide steady income, and oil and gas production adds to the tax rolls. The county’s remote location means there is little speculation, which keeps minimum bids low. With broad open spaces and membership in the North Plains Groundwater Conservation District, the region attracts wind‑energy and irrigation projects. The small population also ensures that auctions are less crowded, giving investors a better chance to purchase desirable parcels.

Real Estate Market Overview

Real estate in the Texas Panhandle remains affordable. Most properties offered at tax sales are vacant land, agricultural tracts or older homes. The county spans 934 square miles, so parcels can range from small town lots to large ranches. Demand is driven by farming, ranching, hunting and energy development. Investors who acquire land through tax deeds can lease it to farmers or ranchers or hold it for potential appreciation. Because the market is thinly traded, patience is essential; buyers may need to market properties over a longer period to obtain desired returns.

Conclusion

Lipscomb County may be remote, but its redeemable tax deed sales offer appealing opportunities. Properties are auctioned on the first Tuesday of each month at 10 a.m., and winning bidders must pay in cash by 4 p.m. the same day. Investors earn a redemption penalty of 25 % to 50 % if the former owner redeems. Because rural Texas counties have fewer bidders, investors can often acquire property or high‑yield penalties at reasonable prices. Nevertheless, careful due diligence is essential—inspect the property, check title and understand the redemption process. With preparation and patience, redeemable tax deeds in Lipscomb County can provide attractive returns.

Pro Tips

• Request the Statement Early – Obtain your Statement of No Delinquent Taxes a week before the sale; the tax office will not issue statements on sale day.
  
• Bring Certified Funds – Bring cashier’s checks in several denominations. If your high bid is less than the check amount, the county will not make change. Cash is accepted, but large amounts can be risky.
  
• Scout the Property – Many parcels are vacant or agricultural. Drive by before bidding to confirm access, improvements and potential uses.
  
• Check for Surviving Liens – Not all liens are wiped out. Federal tax liens, IRS liens and certain municipal liens may survive. A title report is a small investment that can save significant money.
  
• Plan for Quiet Title Action – If you plan to sell or finance the property after the redemption period, budget for a quiet title suit to secure marketable title. Work with an attorney familiar with Texas tax foreclosures.
  

FAQs

1. Do I need to live in Texas to bid at Lipscomb County tax sales?
No. Texas does not restrict bidders by residency. Both domestic and international investors may participate as long as they obtain the Statement of No Delinquent Taxes and follow bidding procedures.

2. Can I finance my purchase?
No. Payment must be made in full on the day of the sale by cash or cashier’s check. Traditional mortgage financing is not available for tax deed purchases, so bidders should prepare funds beforehand.

3. What happens if the property is occupied?
Properties are sold “as is” without warranty. If a property is occupied, you may need to follow legal eviction procedures. Consult an attorney for advice on removing occupants lawfully.

4. How do I get a quiet title after the redemption period?
Texas does not automatically clear title on tax deeds. After the redemption period ends, investors often file a quiet title lawsuit to eliminate potential claims. An attorney can prepare the suit and ensure proper notification to interested parties.5. Are there unsold properties available over the counter?
If a property does not sell at auction, the county may place it in trust and resell it at a later sale with a reduced minimum bid. Some Texas counties allow over‑the‑counter purchases of struck‑off properties, but availability varies. Investors should contact the County Clerk’s office for a current list of struck‑off properties and procedures.

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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Ready to take action in Lipscomb County? Visit our Auction Calendar for tax-sale dates and listings. Use our free resources to make informed decisions, and if you’re still figuring things out, you can always book a call with an expert for clear and practical guidance.

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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

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2009TLS founded