Each year thousands of property owners find themselves unable to pay their property taxes due to short-term financial problems such as illness, job loss, divorce, or death of a family member. In Texas, property owners are able to obtain more reasonable repayment terms for their unpaid property taxes with a property tax loan. While a property tax loan may not be the right solution for everyone, they do offer many advantages to the property owner.
What is a Property Tax Loan?
- A loan made to the owner of real property for the specific purpose of paying delinquent property taxes. The property tax loan pays a property owner's complete past due property tax liability, including any penalties, interest, and fees.
- Loans are made by third party lenders and secured by a transferred tax lien from the tax assessor.
- A new lien is not created; rather the existing tax lien is transferred from the tax assessor to the third party lender.
Why should a Property Owner Secure a Property Tax Loan?
- Allows property owner to retain property ownership.
- Provides flexible repayment plans.
- Eliminates all fines, legal fees and interest charged by the taxing agency.
- Gives property owner time to solve existing financial problems.
- Keeps property owner from having to make a lump sum payment which might deplete cash reserves.
- The property tax loan is quick and easy to obtain.
How does the Taxing Agency Benefit from a Property Tax Loan?
- The property tax payment is immediately received.
- Collection rates improve.
- Eliminates collection and foreclosure steps.
How is the Mortgage Company helped by a Property Tax Loan?
- Ends foreclosure by the taxing agency.
- Eliminates the need to set up an escrow account.
- Does away with the need to restructure a loan.
Where do I go for more information on Property Tax Loans in Texas?
- You can go to the Texas Property Tax Lienholders Association website at http://www.tptla.org/ for more information on Texas property tax loans.