Mitchell County, Texas Redeemable Tax Deed Guide

Introduction of the County and About This Article

Mitchell County sits on open plains near the Colorado River. Ranching, oil and wind energy shape its landscape. Colorado City, the county seat, has fewer than ten thousand people. When property owners fail to pay taxes, the county sells the property at auction under Texas’ redeemable tax deed system. This article explains how those sales work and why the county attracts investors.

What Is Texas’ Redeemable Tax Deed System?

Texas handles tax delinquency by selling redeemable tax deeds. The county obtains a court judgment and orders the property sold. The buyer receives a deed but must wait for a redemption period during which the former owner may reclaim the property by paying back the sale price plus a penalty. Auctions take place on the first Tuesday of each month between 10 a.m. and 4 p.m.. This system helps counties recover revenue while giving owners a final chance to keep their land.

Important Details

Fun Facts About the County

• Small and affordable: About 8,989 people live here, the median household income is $56,033, and homes average $85,700.
  
• Energy meets ranching: Wind turbines stand alongside cattle, reflecting how ranching, oil and wind energy power the economy.
  
• Recreation and history: Lake Colorado City State Park offers warm‑water fishing and boating across five miles of shoreline, while the Heart of West Texas Museum displays prehistoric finds.
  

Attractions & Economic Highlights

Visitors can fish, boat and camp at Lake Colorado City State Park. The Heart of West Texas Museum shares ranching history and prehistoric discoveries. Ruddick Park and Wolf Creek Golf Course provide local recreation. Interstate 20, U.S. 84 and State 208 connect Colorado City to larger cities, while a BNSF rail line and municipal airport handle freight and general aviation. Ranching, oil and wind farms anchor the economy, with retail and services providing jobs.

Why This County Is Ideal for Tax Deed Investors

Property here costs far less than in urban markets, yet investors can earn a 25 % penalty on most parcels and up to 50 % on homestead property if the owner redeems. The local economy is stable thanks to ranching and energy production, and fewer bidders mean less competition. Investors can collect penalties or keep properties for rentals or resale.

Auction Process for Tax Deed Sales

Auctions take place on the first Tuesday each month. Notices are posted at the courthouse and in the newspaper. Registration opens that morning and closes when the sale begins. Bidders gather outside the courthouse at 349 Oak Street. The sheriff reads each property aloud. Bidding begins at the amount of taxes, penalties and costs or at the appraised value. Participants call out bids until a winner is determined. The high bidder must pay in cash or cashier’s check immediately. To bid, you must show identification, register with the tax assessor–collector and present a certificate proving you owe no delinquent taxes. Anyone may bid, and properties are sold as‑is. After the sale, the former owner has 180 days or two years to redeem the property depending on classification.

Returns and Investor Eligibility

If a non‑homestead property is redeemed within six months, you earn a 25 % penalty. Homestead or agricultural land pays 25 % if redeemed in the first year and 50 % in the second. Because the penalty is not pro‑rated, you receive the full amount even if the owner redeems after one month. There is no residency requirement, so investors from any state or country can bid.

Due Diligence and Over‑the‑Counter Sales

Always inspect and research a property before bidding. Drive by to check location and condition. Do a title search to find mortgages or homeowner association liens, because tax sales clear only property taxes. Verify zoning to ensure your intended use is allowed and estimate repair costs. Classify whether the property is homestead or agricultural, as redemption time varies.
If a parcel does not sell at auction, the county may offer it over the counter. You can request a list and submit an offer. OTC purchases remove bidding pressure and allow more time for research, but these properties often have issues that deterred bidders.

Conclusion

Mitchell County offers affordable real estate and generous redemption penalties. Auctions take place monthly, and winners must pay immediately and wait out the redemption period. With a stable ranching and energy economy and fewer bidders, investors can find appealing opportunities. Careful research and understanding of redemption rules are key to success.

Pro Tips

1. Arrive early with your registration paperwork and funds.
   
2. Inspect properties before bidding to avoid landlocked or unusable parcels.
   
3. Ask the tax office about over‑the‑counter opportunities.
   

FAQs

Q1: Can I move into or remodel the property right after the sale?
You may take possession, but major improvements are risky. If the owner redeems, you must return the property and may not get reimbursed.

Q2: Can I use a bank loan to pay for a tax deed?
No. Payment is due immediately in cash or cashier’s check, so traditional financing is not practical.Q3: Do tax sales wipe out all other liens?
Tax sales clear property tax liens but may not remove mortgages, federal tax liens or homeowner association dues. Always research other liens before bidding.

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?

Mitchelle County has tax-sale listings available right now. Visit our Auction Calendar to see what’s new. Use our free resources to gain clarity, and if you need a walkthrough, don’t hesitate to book a call.

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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