Know Your Options

Facing a Tax Foreclosure on an
Inherited Property?
Here Are All Your Choices.

Most heirs facing tax foreclosure don't know what their real options are — and the clock runs out before anyone explains them. This page walks through every legitimate path, with honest pros and cons. No pressure. No spin. Just the truth so you can choose what's right for your family.

Why we built this page

We're real estate buyers — but we're not the only option, and we don't pretend to be. Some situations are better solved by probate, a partition lawsuit, or selling to another family member. We'll tell you when that's true. The only path that's almost always wrong is doing nothing.

1

Go Through Probate, Pay the Taxes, Then Sell

The official legal process to settle an estate and get a clean sale

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Probate is the court process that officially settles a deceased person's estate. It identifies all the legal heirs, pays off any debts, and transfers ownership of the property. Once probate is finished and the taxes are paid, the property can be sold the traditional way — listed with a real estate agent and sold at market value. All heirs split whatever is left after costs.

Pros
  • Gives the property a clean, clear ownership record
  • You can list it on the open market and get full market value
  • Every heir gets their legal share of the proceeds
  • Permanently settles the estate once and for all
Cons
  • Probate typically takes 8 months to several years — sometimes longer with disputes
  • Attorney fees, court costs, and executor fees often run $5,000–$15,000 or more
  • Every heir must agree and sign to sell — one holdout can stop everything
  • If a tax foreclosure sale is already scheduled, probate will almost certainly not finish in time to stop it
  • The longer it drags on, the more taxes and penalties keep adding up
⚠️ Plain truth: If a tax foreclosure deadline is close, probate alone will almost never move fast enough to stop it. You will also need an attorney — there is no way around that cost. If you want to pursue this path, talk to a probate attorney as soon as possible.
2

Pay Off the Taxes & File a Partition Lawsuit

Force a resolution when co-heirs won't cooperate

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Any co-owner can file a partition action in court — a lawsuit that asks a judge to either physically divide the property among heirs or order it sold and the proceeds split. This path doesn't require the other heirs' cooperation, but it does require time, money, and legal representation.

Pros
  • You can force a resolution without unanimous heir agreement
  • Court ensures a fair, supervised process
  • You may receive reimbursement for taxes you paid
  • Protects your ownership rights legally
Cons
  • Attorney fees typically run $5,000–$20,000+
  • Can take 1–3 years to fully resolve
  • You must pay the taxes out of pocket upfront to stop foreclosure
  • The estate will still need to be probated alongside the partition — running two legal processes at once
  • Combined probate + partition costs can easily exceed $15,000–$25,000
  • Family relationships often don't survive the process
  • Court-ordered sales sometimes yield below-market prices
📌 Plain truth: This is a legitimate legal right available to every co-owner. However, the estate will still need to be probated before or during this process — meaning two simultaneous legal processes with stacked costs. If you have the financial resources and time, it can result in a fair outcome. Consult a real estate litigation attorney to understand the full cost and timeline in your state.
3

Apply for a Probate or Tax Loan

Borrow against the estate to stop foreclosure and buy time

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Some lenders specialize in loans secured against inherited or probate property. These can be used to pay off delinquent taxes immediately — stopping foreclosure — while the estate is being settled. In Texas, property tax lenders are also available and can place a lien on the property in exchange for paying the county directly.

Pros
  • Stops foreclosure immediately
  • Buys time to pursue probate or a traditional sale
  • No out-of-pocket cash required upfront
  • Can allow a market-rate sale later
Cons
  • Interest rates on probate/tax loans are often high (8–18%)
  • Loan approval is not guaranteed
  • Adds a lien to the property that must be paid at closing
  • All heirs may need to agree to secure financing
  • Still requires a long-term plan to resolve the estate
🏦 Plain truth: Texas has a well-developed property tax lending industry. Always read the full loan terms — high interest can erode equity quickly. This is a short-term fix, not a solution.
4

Apply to Freeze or Delay Your Taxes (Deferral Programs)

Some states let qualifying owners pause tax collection — but the debt keeps growing

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Texas and other states offer tax deferral for homeowners 65+, disabled, or surviving spouses. The county stops collection while you live in the home — but taxes keep growing with interest until the property is sold.

Pros
  • Stops foreclosure for those who qualify
  • No money needed to apply
  • Usually no attorney required
  • Buys time to figure out next steps
Cons
  • Only for age 65+, disabled, or surviving spouse — you must qualify
  • You must be living in the home
  • Tax debt grows 5–8% annually — eroding equity every year
  • Over 5–10 years can wipe out most of the property's value
  • Does not fix title or ownership problems
⚠️ Plain truth: Think of deferral like a slow leak — the water is still running. Every year you wait, the balance grows and shrinks what you'd walk away with. Ask your county appraisal district about Form 50-126 in Texas.
5

Sell Your Share to Another Family Member

One heir buys out the others — keeps it in the family

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If another heir wants to keep the property and has funds, you can sell your share directly to them. They pay you in cash and you walk away.

Pros
  • Property stays in the family
  • No outside parties involved
  • Can be done without a realtor
  • Often the smoothest path when everyone agrees
Cons
  • Requires a willing and financially capable family member
  • Disagreements on value are common
  • Without a recorded deed, title problems arise later
  • An attorney is still recommended
  • Doesn't solve the tax problem unless the buying heir can also pay taxes
📄 Plain truth: Always document with a proper deed filed with the county. A handshake deal is not legally recognized and can create big problems for everyone down the road.
6

Do Nothing — Let the Property Go to Tax Auction

In our experience, the worst possible outcome for heirs

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If nothing is done before the county's deadline, the property gets sold at a public tax auction to whoever bids. The county keeps what it's owed in back taxes and fees. If the property sells for more than what's owed, heirs may be able to claim what's left over — called "excess proceeds." In practice, this almost never works out the way heirs hope.

Possible Pros
  • Requires no action or upfront cost from you
  • The tax debt gets wiped out
  • If there are excess proceeds, you may be able to claim them
Why This Almost Always Goes Badly
  • Investors who buy at tax auctions are buying properties they have never seen inside — so they bid low and cautiously
  • Properties almost always sell for just enough to cover the taxes owed — leaving little or nothing for heirs
  • Even if there are leftover funds, claiming them requires an attorney and going to court to prove you are a rightful heir
  • The estate still needs to be probated first before any excess proceeds can be distributed — more legal fees
  • If the estate was never probated, the county may hold the funds for years
  • You permanently lose all the equity above what the taxes cost — often tens of thousands of dollars gone
🚨 Plain truth: Most people who end up at this point didn't choose it — they ran out of time without knowing their options. Every other option on this page will almost certainly put more money in your pocket. If you've received a foreclosure notice and the auction date is coming, please call us before it happens.
7

Sell Your Share to Mavro Properties

The fastest, simplest exit — cash in hand the same day you sign

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We buy your individual ownership share directly from you — without needing the other heirs to agree, without probate, and without any money out of your pocket. We send a licensed mobile notary to you wherever you are. You sign. We release your payment the same day. Delinquent taxes are handled at closing. We take on the complexity so you don't have to.

Pros
  • Fastest possible resolution — 1 to 4 days
  • No probate required
  • No co-heir agreement needed
  • We pay all closing costs
  • Delinquent taxes addressed at closing — nothing out of pocket
  • No repairs, no cleanup, no realtor fees
  • Stops the foreclosure clock immediately
  • Full indemnification — if any lawsuits, claims, or legal issues tied to the property come up after closing, they are our problem, not yours
  • Confidentiality agreement included — what you receive stays between you and us
Honest Cons
  • You will receive less than full market value for the whole property
  • We are purchasing your share — not the whole property at retail price
  • If time is not a factor and heirs can agree, a traditional sale may yield more
Our promise: We will always be transparent about our offer and how we arrived at it. We encourage you to compare your options before deciding. If a different path is better for your situation, we will tell you honestly. Our reputation is built on doing right by the people we work with.

Not Sure Which Option Is Right for You?

Every situation is different. Call us — we'll listen, give you honest input, and if a path other than selling to us is the right one, we'll tell you so. We're not attorneys, but we can connect you with one if you need help.

📞 (866) 222-6173 📞 (480) 725-1334
Mon–Sat · 8am–8pm local · We return every voicemail.
Important: The information on this page is provided for educational purposes only and is not legal, tax, or financial advice. Laws vary by state and individual circumstances. Mavro Properties, LLC is a real estate investment company, not a law firm. Before making any decision about an inherited property, tax foreclosure, partition, or estate matter, please consult with a qualified attorney or licensed financial advisor in your state.