Property Tax Funding Blog

Property taxes can be a contentious topic because they are a significant source of revenue for local governments and can represent a significant expense for property owners. Here are some potential "dirty truths" about property taxes:

Property tax loans are an option for homeowners struggling to pay their property taxes. In many cases, property taxes can be a significant expense, especially for those who are living on a fixed income or who have experienced financial difficulties. If you find yourself in this situation, a property tax loan might be the solution you need to keep your property from going into foreclosure.

Past due property taxes are a serious issue. If left unpaid, your property tax bill can skyrocket by 48% in the first year alone. Additionally, suppose your taxes remain delinquent past July. If that happens, you may be sued by the tax assessor's attorney resulting in additional legal fees tacked on to your bill, and ultimately you may lose your property in a tax foreclosure sale. With all these reasons to avoid past due property taxes, it's a wonder that thousands of Texas property owners are still past due on their property tax bills.

Becoming a homeowner is a major step in life. You’ll be responsible for maintaining your home, making repairs when necessary, and contributing toward your mortgage. At the same time, you’ll have the freedom to paint the walls, plant a garden, and raise a family.

In Texas, there has been a lot of discussion about property tax loans. With the economy still lagging, many Texans are faced with property tax bills that they are struggling to pay. In this environment, many property owners are investigating whether property tax loans are good or bad. At first glance, those who owe real estate taxes and have insufficient resources may be hesitant to exchange one form of indebtedness with another. However, if you spend the time to investigate the benefits of a property tax loan, you’ll likely reach the same conclusion as countless others – Property Tax Loans Are Good! 

Property ownership in Texas comes with an obligation to pay annual Ad Valorem taxes. Every January 1st, local governments place liens on the properties in their jurisdiction, and these liens remain until the assessed taxes are paid. A failure to pay property taxes can be extremely costly, and it can also have other serious consequences.

In Texas, if a property owner does not pay their property taxes, the Tax Collector has a big hammer at his disposal to enforce the payment. In addition to large penalties and fees, the enforcement procedure begins with filing a suit against the property owner, followed by a court order to sell the property at a foreclosure auction, after which the proceeds from the foreclosure sale satisfy the outstanding property taxes.

How Lien Transfers Protect Homeowners

Each year Texas property owners are faced with their annual property tax assessment.  For many Texans’ this bill can come at bad time, normally arriving around the holidays when already a tight budget can be strained.  Many consider borrowing money to pay this bill, but in a sea of lending options it is important to make the right choice.   

In the state of Texas, a lien is created on every piece of property on January 1, with the purpose of collecting property taxes for the various taxing jurisdictions that apply to that property. A property tax bill is technically due upon reciept, and becomes delinquent in February following the year from when it was levied.  After February 1st, interest and fees begin to accrue on the balance and do so every month until the bill is paid.  

Despite being known for low taxes, Texas has the 2nd highest property tax rate in the country according to a recent study.  This state has an almost unique system for levying and collecting those taxes. Because of these unique circumstances, a consumer product has been created to help homeowners satisfy this tax burden without going into default or suffering penalties.