Property Tax Loans
What is a Property Tax Loan and How Do They Help Me?
Property tax payment loans can allow Texas residential and commercial property owners to avoid accruing significant county interest, taxes, fees, and penalties on their delinquent property taxes. Property tax payment plans are designed to provide property owners with an alternative to paying large lump-sum payments to their taxing authorities and, in some cases, can help the owner avoid foreclosure. Moreover, property tax plans usually have substantially lower financing costs than those charged by the taxing authorities (which can accrue to nearly 50% in the first year of delinquency).
At the beginning of each tax year, a tax lien is placed on taxable property by the local taxing authorities. It is removed when the property taxes are paid. If they are not paid by the February 1st Texas deadline, the lien gives the government the right to force the sale of the property in order to collect the unpaid taxes. In Texas, taxes become delinquent on February 1st, and after that, punitive penalties and interest immediately begin to accrue. You may choose to take out a property tax loan, whereby the tax lien company pays the tax collector an amount equal to what you owe in exchange for an assignment of the lien against your property. After that, you repay according to the chosen payment plan worked out between you and your property tax lender.
Timing is crucial
It is important to make a decision quickly as to how you are going to pay delinquent property taxes. As soon as your taxes are delinquent, the taxing authority will charge interest and penalties with every passing month. The TPTLA member companies will help you pay your property taxes and avoid these additional county charges.
Property tax loans are available to all types of Texas properties
Residential
Commercial
Government
THE PROPERTY TAX FINANCING PROCESS
Apply
- Contact one of our TPTLA member companies. Complete an online or telephone application and get in contact with a property tax loan representative.
Review and Approve
- Processing of your account can begin as soon as the completed application is received. Your company will work with you to structure a loan which fits your budget.
Close
- Once approved, your property tax loan company will work to find a convenient closing time and location that suits your needs.
Taxes Paid
- After closing, your property tax loan company will pay off everything you owe directly to the tax office and you will begin your payment plan.
