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Property Tax Funding Blog

How to Find the Right Property Tax Lender

Posted on Tue, Jun 10, 2014 @ 05:06 AM

find property tax lenderApplying for a loan with a property tax lender can be a fast, hassle-free solution to a delinquent tax problem. Before you sign a loan agreement, make sure that you understand how this type of borrowing works. Since the tax lender will hold the tax lien on your property, you'll really want to take your time finding the right property tax lender.  Making a wise choice upfront can save you potential headaches down the road.  Asking the following questions can help you choose the right property tax lender:

Does the property tax lender have a solid, verifiable reputation? The first step in picking a lender is weeding out the ones you wouldn't want to put your trust in. It's always advisable to fully investigate a lender's reputation. Try the Better Business Bureau as a first place to start your investigation.

Is the lender focused on profits or service? Some property tax lenders sell their loans to a third party, or have another company collect the monthly payments. Other lenders service their own loans from the inception of the loan, to the last payment. If a lender is customer-oriented, they will work with you if you have difficulty meeting the terms of the loan, rather than immediately beginning aggressive collection tactics. 

Does the lender charge any pre-approval fees? If a property tax lender charges an up-front credit check fee, or an application fee just to talk about the costs of borrowing, it should raise a red flag. Ethical property tax lenders disclose all the loan costs without obligating you financially.  Additionally, make sure you work with a lender that will send you a Good Faith Estimate of all costs associated with closing the loan and ask the lender if there is any chance the costs will change.  The best lenders honor their quoted closing costs. 

Will the lender customize your loan? The right property tax lender should discuss your personal financial circumstances, and tailor the terms of the loan to match your budget. Their goal is for you to have a payment you can afford, so that you maintain ownership of your home, rental or business property.

Is the lender giving you candid advice about your need for a loan? The fact is that some situations don’t justify a property tax loan.  If you have a small balance(less than $2,000), or you expect to pay off your balance in a month or two, a tax loan may not be in your best interest.  If the loan won't save you money, a property tax lender should advise you not to borrow. A trustworthy lender will also tell you to apply for a deferral if you're over age 65 or disabled.

If you're looking for an honest, reputable lender, call Property Tax Funding at 877-776-7391, or complete our online application for a no-obligation quote.


What is Property Tax Lending?

Posted on Thu, Jun 05, 2014 @ 06:06 AM

what is property tax lendingIf this is the first time you've had difficulty getting your taxes paid, you may have just heard about property tax lending, and want to know more. So what exactly Is property tax lending? It's a specialized type of lending that gives Texas property owners a cost-saving alternative to huge tax assessor delinquency fees.  What many property owners don’t know is that tax assessor penalties can increase your tax bill by 48 percent in just twelve months. Let's answer some other key questions:

Is Property Tax Lending Regulated?

Yes. Property tax lenders in Texas are licensed and regulated by the Office of Consumer Credit Commissioner (OCCC), which regulates many key credit industries in Texas. The loan officers of reputable property tax lenders are also licensed through the National Mortgage Licensing System (NMLS), which requires considerable training, stringent testing, and continuing education.

Is Property Tax Lending New?

No. The original law that made this type of borrowing available was passed in 1933. It's known as the Tax Lien Transfer Law, and it's been revised and amended in the years since to enhance the protection it provides to property owners. Since it became law, property tax lending has helped more than 100,000 Texans get back on a firm financial footing and retain ownership of their properties.

How Does Property Tax Lending Work?

Taking out a loan for property taxes involves transferring the lien that's put on your property every January 1st by your local tax authority. When you sign a loan agreement, the lender pays off your debt to the tax assessor, and assumes their lien. Instead of paying the tax collector, you pay the lender back over an agreed time period. When the loan is paid in full, the lender releases the lien on the property.

Who Can Benefit From Property Tax Lending?

Any Texan who owns property can turn to this type of borrowing if they fall behind on their yearly taxes. Homeowners, investment property owners, landowners, and commercial property owners who aren't in bankruptcy proceedings can all qualify. Most lenders have minimum property value and minimum loan amount requirements.  While most people will qualify, new tax lending laws prevent homeowner’s that are 65 or older from receiving a tax loan if they occupy the property as their primary residence.

If you're delinquent on property taxes and you'd like to learn whether a property tax loan can help save you money or avoid foreclosure, contact us at Property Tax Funding by calling 877-776-7391, or use our easy online application form.


Five Considerations before getting a Texas Property Tax Loan

Posted on Wed, May 28, 2014 @ 05:05 AM

Texas property tax loan considerationsIf you owe past-due property taxes, a Texas property tax loan can offer a fast, affordable solution. The following can help you make an informed borrowing decision:

Learn how Texas property tax loans work. When you take out a property tax loan, the lender agrees to pay off the taxes, fees, interest and penalties owed to your local taxing authority and the lender assumes the tax lien that's already in place. In exchange, you agree to repay the tax lender the tax amount, plus interest and closing costs. A repayment term between one and ten years can be chosen to fit within your budget, so that the monthly loan payments are affordable. After you've repaid the loan, the lender files a lien release with your county, and sends you a copy.

Choose your lender wisely. Check the reputation of every lender you're considering with the industry's regulatory agency; the Texas Office of Consumer Credit Commissioner.  Also, ask whether they belong to the Better Business Bureau and the Texas Property Tax Lienholders Association. If they're honest and reliable, they'll be up-front about the loan process and all the costs involved, and they'll service your Texas property tax loan in-house from start to finish.

Determine whether you really need a Texas property tax loan. If you're disabled or older than age 65, you can qualify for a deferral from your tax assessor. Another option for taking care of your past-due tax balance is agreeing to a payment plan with your tax assessor that allows you to pay off 25 to 50 percent immediately, then spread the remainder over 12 months. If you qualify for either of those options, you don't need to apply for a Texas property tax loan.

Investigate whether a property tax loan is the sensible solution. Borrowing is only a benefit if taking out the loan actually saves you money or it prevents the taxing authority from foreclosing. If you owe more than $2,000, a Texas property tax loan could be the most cost-effective option.  If your financial situation doesn’t allow you to get the outstanding tax balance paid by July 1st, then a property tax loan becomes a more compelling solution. After that date, the amount you owe jumps up drastically with the addition of a 20 percent collection fee from the tax assessor's attorneys, plus they can start legal proceedings to foreclose.

Compare a Texas property tax loan with other borrowing options. Most forms of borrowing hinge on your personal credit history, and the application and approval process is often time-consuming. In contrast, approval for a Texas property tax loan is based on an existing tax lien, so it's quick, and there's no credit check required. The closing costs are rolled into the loan, so there are no out-of pocket expenses either. You can start the easy application process for a Texas property tax loan online. If you'd prefer to speak with a friendly, licensed Property Tax Funding loan officer, call us at 877-776-7391.

When to Consider a Property Tax Loan

Posted on Tue, May 20, 2014 @ 05:05 AM

property taxes loan considerFalling behind on your annual property taxes can be incredibly stressful and expensive, and the problem won't simply go away on its own.  A property taxes loan can save you money and headaches, but how do you know if you really need to take this step? If you can relate to any of the following scenarios, a property taxes loan could be the solution you've been searching for:

  • The dollar amount in interest, fees and penalties you owe the tax assessor is becoming unmanageable. Penalties and interest charges seem to start off small, but over the course of one year, they'll add 48 percent to your tax debt. For example, if your annual property tax bill is $8,000 and it remains delinquent for just 12 months, you'll be in debt to the tax assessor for an additional $3,840. A property taxes loan can save more of your hard-earned money if you apply sooner rather than later.
  • Your tax assessor's attorneys are threatening foreclosure. You may have ignored the late payment notices from your tax assessor for several months because you couldn't pay the bill, but it's July now, and you're getting letters from their attorneys that they're about to file a lawsuit against you. Jeopardizing your property ownership is a risk that's not worth taking. When you take out a property taxes loan, the full amount owed to the tax assessor is paid off, which stops their attorneys' foreclosure action in its tracks.
  • You can't afford the payment plan from your tax assessor. Most Texas taxing authorities offer a payment plan option, but they aren't always a viable alternative if you're already struggling to pay your bills. You may not have the chunk of cash required to make a 25 or 50 percent down payment, or the monthly income to get the remainder paid off within a year. With a property taxes loan, the closing costs and fees are added to the balance, and not payable up-front. The amount you owe the tax assessor along with the loan fees can be spread out over a term of up to 10 years, so your monthly payments are affordable.

If you've decided that now is the right time to relieve your past-due tax headaches with a property taxes loan, complete our hassle-free online application, or call us at 877-776-7391 and speak with one of the experienced loan officers at Property Tax Funding.

Who Should Not Get a Property Tax Loan?

Posted on Wed, May 14, 2014 @ 05:05 AM

no property tax loansProperty tax loans are cost-saving alternatives for many Texas home, commercial and rental property owners, and can halt the tax assessor's collection process and prevent foreclosure. There are some instances, however, when this type of past-due tax financing isn't the ideal option. We've put together some examples of circumstances when a property owner shouldn't get a property tax loan:

  • You're over age 65 or disabled, and the property is your homestead. If so, you don't need a property tax loan because you can qualify for a tax deferral by completing the appropriate forms with your local tax assessor. Once the deferral is approved, the tax assessor's collection and foreclosure process stops, although interest continues to accrue at 8 percent annually. If you sell or move out of your home, any amount you owe the taxing authority becomes due and payable. If you pass on, your heirs must pay the entire outstanding balance within 180 days.
  • You owe less than $2,000 in taxes, and you expect to pay off the balance before July 1st. Assessed property taxes must be paid by January 31st, and beginning on February 1st, your tax assessor starts charging interest and penalties on any amount you still owe. Through June 1st, these charges will total 15 percent, which would add $300 to a $2,000 tax bill. The fees and costs associated with property tax loans are likely higher than $300, so taking out a loan for this short of a term wouldn't save you money. If you know you can't pay off the delinquent taxes by July 1st, a property tax loan will provide some savings, because that's when the tax assessor's attorneys add their 20 percent collection fee to past-due accounts and the tax assessor tacks on another 3% penalty.  What started as a $2,000 tax bill can increase to $2,832 by July 1st.     
  • Your tax assessor offers an payment plans. If you have the cash on hand to pay 25 to 50 percent of the balance right away, and can budget for heftier monthly payments, you don't need to apply for a property tax loan. Depending on the terms offered by your local tax assessor, you may have to repay the entire amount owed within 12 months, and you'll need to factor in that interest and penalties continue to mount during this period.

To speak with a licensed Property Tax Funding loan officer and learn whether low-cost property tax loans could save you money, complete our online application, or call us at 877-776-7391.


The Benefits of a Property Tax Loan

Posted on Thu, May 08, 2014 @ 05:05 AM

benefits property tax loanIn Texas, property taxes are due and payable every January 31st. If you can't come up with the full lump sum, you need to find an affordable solution instead of putting your tax bill on the back burner. Property tax loans are a low-cost financing option that offer you many benefits:

They save cash. The longer you wait to pay your taxes, the bigger the bill you'll face. The tax assessor starts charging interest and penalties on February 1st, and by the end of the year, you could owe 48% over and above your original taxes. The sooner you apply for a low-interest property tax loan, the less you'll owe.

They're budget-friendly. Most taxing jurisdictions offer payment plans, but they may not be a viable alternative if you're already tight on your monthly budget. Typically, they require one-third or one-half of the outstanding balance up-front, with the remainder paid off in as little as 12 months. In comparison, a property tax loan doesn’t have any out-of-pocket costs, and have flexible repayment terms between one and ten years. This can make the monthly payments as affordable as you need them to be.

They save time. Property tax loans have a simple and swift application and approval process, and are very easy to qualify for, even with bad credit. Approvals are often done in the same day and your loan can be closed within days of your application.

They save headaches. Unpaid taxes create a lot of pressure and stress for a property owner. There can be delinquency notices from the tax assessor, payment demands from their attorneys, and steadily increasing fees and interest charges. Owing back taxes won't go away if the problem is ignored, and will get worse over time. Property tax loans can end the ordeal.

They preserve property ownership. If the tax assessor and their legal representatives decide you have no intention of paying your taxes and their massive fees, they can file a lawsuit any time after July 1st. When you take care of the problem with an affordable property tax loan, you remove the risk of losing your property through a tax foreclosure.

If you have a back-tax problem that needs a fast, easy solution, the licensed loan officers at Property Tax Funding can help. You can reach us by phone at 877-776-7391, or through our online application.

7 Things You Need to Know about Property Tax Lenders

Posted on Tue, Apr 29, 2014 @ 06:04 AM

property tax lenders things to knowPerhaps you've heard of property tax loans but you're not familiar with the industry. Private lenders provide property tax relief in Texas based on the Tax Lien Transfer law of 1933 (and subsequent revisions to that law), which provide for regulation and added protection for property owners.  Today, these specialized lenders are an invaluable resource for property owners who find they need property tax financing help. Here are some important things you should know about property tax lenders:

1. They're fellow Texans who provide a vital service to Texas property owners. These local business owners have gained a solid reputation with thousands of satisfied clients.  Tax lenders create jobs and provide a valuable service in their state and communities.

2. Many lenders belong to reputable trade organizations such as the Texas Property Tax Lienholders Association and the Better Business Bureau, which shows their commitment to integrity, transparency and adherence to an ethical code of conduct.

3. Property tax lenders are trained professionals with considerable industry knowledge and experience. As licensed professionals in the lending industry, their business practices are governed by strict regulations and a Texas regulatory agency, (Office of Consumer Credit Commissioner), to ensure compliance.

4. The best lenders service their loans in house from the initial phone call and application right through to the last payment. Tax lenders with strong balance sheets don’t sell their loans to third parties, and keep their client's personal information confidential.

5. Reputable tax lenders advise about all borrowing options, answer all questions, and take the time to explain the entire loan process. A trustworthy lender explains the terms, and provides a breakdown on all costs associated with a loan. This enables a borrower to make an informed decision about whether a property tax loan is the right choice for their current financial situation.

6. Many lenders have flexible repayment plans and are willing to work with a borrower if financial difficulties arise during the term of the loan. The goal of a property tax lender is to have the borrower repay the loan, so that ownership of the property is retained and foreclosure is avoided.

7. Property tax lenders have helped more than 100,000 Texans avoid the high costs and stress of delinquency. Texas communities have benefited too, because every tax loan approved puts much-needed revenue into the hands of local governments to pay for essential services and education.

If you need the assistance of a licensed, experienced property tax lender, contact Property Tax Funding at 877-776-7391, or complete our online application.


Learn How Texas Property Tax Loans Work

Posted on Wed, Apr 23, 2014 @ 05:04 AM

Learn How Texas Property Tax Loans Work

texas property tax loans blogAnnual property taxes are a fact of life, but if circumstances won't allow you to get them paid by the January 31st deadline, where can you turn? You may have heard about Texas property tax loans, but you're not sure exactly how they work. Let's take a look at what's involved, and how Texas property tax loans can save money and headaches.

Texas Property Tax Loans: How They Work

Every year, the county assessor is granted a tax lien on your property for ensure the payment of your property taxes. If you don't pay the assessed taxes, they can take legal action to enforce the lien and foreclose on the property. In 1933, the Texas Legislature passed what's known as the Tax Lien Transfer Law. It allows a property owner to have a third party pay off the debt owed to their local taxing authority. This lets you turn to a licensed, reputable lender to assume your tax lien. In return, you agree to repay the lender at a reasonable interest rate, over a term as long as 10 years. So, instead of facing interest, fees and penalties that can add 48 percent to your original debt within 12 months, your property tax obligation is transferred to a tax lender, and you pay the tax lender budget-friendly monthly payments.

The Texas Property Tax Loan Process

  • Begin by choosing a reputable lender who's a member of the Texas Property Tax Lienholders Association and in good standing with the Better Business Bureau.  You might also want to verify the lenders license is in good standing with the Office of Consumer Credit Commission
  • Normally you can speak with a licensed loan officer by phone or complete a simple online form to get the application process started. To qualify, you'll be asked to provide details about your property and income, and other basic information.
  • If you have bad credit, normally that will not prevent you from obtaining property tax loan.  In fact, most property tax lenders do not report to the credit agencies. 
  • Approval for a Texas property tax loan usually takes place quickly once the information on your application is verified. You can close on the loan at a time and location that's most convenient, and typically there are no out-of-pocket closing costs to pay. 
  • After the loan closes, the lender pays off your outstanding tax balance and all accrued interest charges, penalties, fees and court costs. Within just a few days, you'll be free of the stress of delinquency notices, rising debt, and the risk of foreclosure.
  • You begin making monthly payments to the tax lender to pay off the tax line.  When the loan is paid off, your property tax lender files a lien release with the county and provides you with a copy.

If you'd like to learn how a Texas property tax loan can solve your past-due tax problem, an experienced Property Tax Funding loan officer is just a phone call away at 877-776-7391.

5 Steps to Finding a Reputable Property Tax Lender

Posted on Wed, Feb 12, 2014 @ 05:02 AM

5 Steps to Finding a Reputable Property Tax Lender

find reputable property tax lenderIf you're a Texas property owner who's wisely decided that a low-cost property tax loan is the solution to your stressful, expensive past-due tax problem, choosing a reputable property tax lender is vital. There are a number of property tax lenders to pick from, so how do you find one who's trustworthy? Here are some basic guidelines on what to look for in a lender.

  1. Ask the lenders you're considering whether they belong to the Texas Property Tax Lienholders Association (TPTLA). Membership in this voluntary organization requires that a lender adhere to a strict code of conduct. By choosing a reputable property tax lender who makes this commitment, you're assured that they'll observe the highest ethical standards in their dealings with you, your mortgage company, and your local tax assessor.
  2. Ask about their standing with the Better Business Bureau (BBB). A reputable property tax lender should have an "A" rating with their local BBB. Since 1912, this non-profit organization has been instrumental in promoting an ethical marketplace, and providing consumers with valuable insight into the conduct of the businesses they're considering patronizing. Your chosen lender should have an unblemished complaint history with the BBB.
  3. Check a lender's reputation with the Office of Consumer Credit Commissioner. This is the state agency that regulates the credit industry in Texas, and their mission is to protect consumers against deceptive or abusive lending practices. A reputable property tax lender should have no history of complaints with the OCCC. You can request a particular lender's history by contacting the Public Information Officer by email, by fax at 512.936.7610, or by mail at 2601 North Lamar Boulevard, Austin TX 78705.
  4. Ask if their loan officers are licensed through the National Mortgage Licensing System (NMLS). In order to qualify for a license, a loan officer must meet the pre-licensing education requirements, pass a criminal background check, submit to a credit check, pass both national and state components of the S.A.F.E. Mortgage Loan Originators test, and complete yearly continuing education. A reputable property tax lender will ensure that you're protected by insisting that their loan officers are licensed.
  5. Look for a time-tested, Texas-owned company with a proven track record of outstanding service. Choose a reputable property tax lender who's been in business for a number of years, who can provide you with testimonials from other property owners regarding their professionalism, integrity, and high level of service.

Property Tax Funding has been a trusted lender since 2008.  Since that time we have helped thousands of Texas property owners with their property tax needs.  Property Tax Funding is a member of the TPTLA, holds an “A” rating with the BBB, has no record of complaints with either the BBB or the OCCC, employs only licensed loan officers, and is locally owned and operated.  To learn more about or service or to receive a quote, contact us at 877-776-7391.  

Loans for Back Property Taxes Assist Texas Property Owners

Posted on Wed, Feb 05, 2014 @ 05:02 AM

Loans for Back Property Taxes Assist Texas Property Owners

loans for back property taxesIn states that levy personal income tax, some of the revenue collected is passed down to local governments to fund services and infrastructure. Here in Texas, much of that funding comes from the annual taxes paid by property owners. Local taxing authorities take the collection of property taxes very seriously, because they depend on the revenue to keep their county, town and city governments functioning. As a result, property owners who owe back taxes are subject to extremely high interest charges, late-payment penalties and collection fees. Once an owner gets behind on their property taxes, the tax assessor begin a collection process that does not cease until the entire balance is paid in full.  Fortunately, there are loans for back property taxes that can help.

Limited Tax Assessor Assistance Can't Compare To Low-Cost Loans for Back Property Taxes

The steep penalties and interest charged by Texas tax assessors can't be waived -- they're mandated by law. There are just two exceptions -- if a property owner is on active military duty during a war or national emergency, or if the tax assessor was directly responsible for a property owner's delinquency, they can escape these onerous charges. Some taxing authorities offer payments plans for back taxes, but they often require large down payments, and the remainder must be paid off within 12 to 36 months. These terms aren't affordable for many individuals dealing with financial difficulties, but a loan for back property taxes through a licensed private tax lender can solve the problem quickly, and save the property owner money.

Loans for Back Property Taxes Offer Many Advantages

The Texas tax lien transfer law allows a private lender to pay off an overdue tax bill, including all the penalties, interest charges, legal and collection fees, and in exchange set up a repayment agreement with the property owner. As an alternative to dealing with delinquency and the huge costs that come with it, loans for back property taxes offer:

  • Zero-down closings.
  • Qualification even with bad credit.
  • Guaranteed low interest rates.
  • Budget-friendly monthly payments.
  • Super-fast approval and tax balance payoff.
  • Flexible repayment periods from 1 to 10 years.
  • No early loan payoff penalties for homeowners.
  • Savings of up to 60 percent of first-year tax assessor charges.

Solving a past due tax problem with a cost-saving loan for back property taxes is easy -- just call Property Tax Funding at 877-776-7391, or complete an application online.

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