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does a tax sale wipe out a mortgage in Texas because a property tax lien has priority if your home is sold through a tax foreclosure the sale wipes out any mortgages so the loan servicer will usually Advance money to pay delinquent property taxes to prevent this from happening does paying property tax give ownership in Texas however it is important to remember that simply paying property taxes does not mean you are the legal owner in order to establish legal land ownership in Texas you must have a clear title to the property is Texas a tax lien or deed state Texas has been referred to as a hybrid tax deed State because its laws provide homeowners with an opportunity to pay delinquent taxes for a period of time after a winning bidder takes possession of the Countyamp;#39;s tax lien against the property