Before diving in, I reviewed your existing blog index to avoid duplicating prior topics. Your current list (through February 2026) does not include coverage of post-foreclosure redemption rights.

One of the most misunderstood areas of Texas real estate law is what happens after a foreclosure sale—specifically, whether a former owner can still reclaim the property. In certain cases, Texas law provides a powerful remedy called the right of redemption.

This article explains when redemption applies, how long you have, and what it costs to recover your property.

What Is the Right of Redemption in Texas?

The right of redemption is the legal ability of a former property owner to buy back real estate after it has been sold at foreclosure.

In Texas, this right applies mainly in two situations:

1. Property tax foreclosures
2. Homeowners’ association (HOA) assessment foreclosures

It does not usually apply to standard mortgage foreclosures by banks.

Texas Property Tax Foreclosures and Redemption Rights

When property taxes are not paid, counties and taxing authorities may file suit and obtain a judgment to sell the property.

After a tax foreclosure sale, Texas law gives many owners a second chance.

Statutory Authority

Texas Tax Code § 34.21(a) provides:

“The owner of real property sold at a tax sale… may redeem the property.”

The statute then sets specific deadlines depending on the type of property.

Redemption Periods for Tax Foreclosures

Under Texas Tax Code § 34.21(e), the redemption period is:

1. Homestead and Agricultural Property

• 2 years from the date the deed is recorded

This applies to:

• Residential homesteads
• Property designated for agricultural use

2. All Other Property

• 180 days (about 6 months)

This typically includes:

• Rental property
• Vacant land
• Commercial property
• Investment property

Missing these deadlines usually means the right is permanently lost.

How Much Does It Cost to Redeem Property?

Redemption is not free. The former owner must reimburse the purchaser.

Texas Tax Code § 34.21(f) requires payment of:

1. The foreclosure purchase price
2. The deed recording fee
3. All taxes, penalties, and interest paid by the buyer
4. A statutory premium

Statutory Premium

The law adds a mandatory “penalty” payment:

• 25% if redeemed in the first year
• 50% if redeemed in the second year (for homesteads/ag land)

This means redeeming later becomes dramatically more expensive.

Example

If a property sold for $80,000:

• First-year redemption:
  $80,000 + 25% = $100,000 (plus taxes and fees)
• Second-year redemption:
  $80,000 + 50% = $120,000 (plus taxes and fees)

Delays can cost tens of thousands of dollars.

HOA Foreclosures and Redemption Rights

Texas also allows redemption after certain HOA foreclosures.

Statutory Authority

Texas Property Code § 209.011 gives homeowners limited redemption rights after an HOA sale.

Redemption Deadline

The owner has:

• 90 days after the foreclosure sale

This is much shorter than tax foreclosure redemption periods.

Amount Required for HOA Redemption

The redeeming owner must pay:

• Purchase price
• Assessments
• Court costs
• Attorney’s fees
• Recording fees
• Interest

HOA redemptions are time-sensitive and procedurally strict.

Mortgage Foreclosures: No Automatic Redemption

Most homeowners are surprised to learn that bank foreclosures generally have no redemption period in Texas.

Once a non-judicial mortgage foreclosure occurs:

• The sale is final
• Title transfers immediately
• No statutory right to repurchase exists

Limited exceptions may apply for federal liens or procedural defects, but redemption is usually unavailable.

How Do You Exercise the Right of Redemption?

Redeeming property requires strict compliance.

Step 1: Identify the Purchaser

You must determine:

• Who bought the property
• Their mailing address
• The recorded deed information

Step 2: Calculate the Redemption Amount

This includes:

• Sale price
• Taxes paid
• Premium
• Fees

Errors in calculation can invalidate the redemption.

Step 3: Tender Payment

Texas Tax Code § 34.21(f) requires payment to:

• The purchaser, or
• The county tax office (in some cases)

Payment usually must be in certified funds.

Step 4: Obtain a Redemption Deed

Once paid, the purchaser must execute a redemption deed returning title.

Without proper documentation, ownership disputes can arise later.

Common Redemption Pitfalls

Many former owners lose redemption rights due to avoidable mistakes.

1. Waiting Too Long

Deadlines are strictly enforced. Courts rarely grant extensions.

2. Underpaying

Missing even small amounts can invalidate redemption.

3. Paying the Wrong Party

Payment must go to the correct legal owner.

4. Failing to Record Documents

Unrecorded redemption deeds can cloud title.

5. Ignoring Additional Taxes

Post-sale taxes are part of the redemption amount.

Why Redemption Matters for Investors and Buyers

Redemption affects more than former owners.

For Buyers at Foreclosure Sales

Purchasers must understand:

• They may not have clear title for months or years
• Improvements made before redemption may not be recoverable
• Financing is difficult during redemption periods

Texas Tax Code § 34.21(i) limits reimbursement for improvements, creating financial risk.

For Property Owners

Redemption provides:

• A second chance to save family property
• Time to refinance
• Opportunity to sell at market value
• Protection against permanent loss

Used strategically, redemption can preserve significant equity.

When Should You Consult a Texas Real Estate Attorney?

You should seek legal guidance if:

• Your property has been sold at tax or HOA foreclosure
• You are approaching a redemption deadline
• You are disputing redemption amounts
• You purchased property subject to redemption
• Title issues have arisen after redemption

Mistakes in this area are often irreversible.

Final Thoughts: Redemption Is Powerful—But Unforgiving

Texas redemption law gives former owners a rare opportunity to reclaim foreclosed property. But it is:

• Highly technical
• Deadline-driven
• Financially demanding

Whether you are trying to save your home or evaluating a foreclosure purchase, understanding redemption rights can mean the difference between recovery and permanent loss.

If you are facing a tax sale, HOA foreclosure, or post-sale dispute, experienced legal guidance can help protect your property and financial interests.

At David C. Barsalou, Attorney at Law, PLLC, we help clients navigate business, family, tax, estate planning, and real estate matters ranging from document drafting to litigation with clarity and confidence. If you’d like guidance on your situation, schedule a consultation today. Call us at (713) 397-4678, email barsalou.law@gmail.com, or reach us through our Contact Page. We’re here to help you take the next step.