Can I get a Property Tax Loan before my Property Taxes are Past Due?
We receive this question often from the time tax bills are sent until they are due. The answer to this question is not a simple yes or no, and it depends on several factors. Foremost, if you have past due property taxes, your property is likely eligible for a property tax loan now. For properties with taxes not currently past due, our ability to offer a property tax loan is based on the language contained in the Texas Tax Code, Section 32.06, which contains the following language regarding non delinquent taxes:
“…….taxes that are not delinquent at the time of payment if:
(A) The property is not subject to a recorded mortgage lien; or
(B) A tax lien transfer authorized by the property owner has been executed and recorded for one or more prior years on the same property.”
Which Properties Are Eligible for a Tax Loan Now?
To clarify, all properties with past due taxes are eligible now. Property owners whose property taxes are NOT past due may be eligible for a property tax loan now, if
1) You do not have a recorded mortgage lien on your property
2) You have a prior tax loan for a prior year on this property.
If your property does not meet the above guidelines, we can still offer you a property tax loan; however, unfortunately we must base the tax payment amount on the February payoff amount, which will include the 7% tax assessor penalty. While this penalty is costly, it only gets worse. Tax assessors will continue to add penalties every month, which can equal up to 37% by July 1st. These penalties along with possible litigation and court costs will really drive up your bill. A property tax loan will immediately pay off all delinquent taxes and prevent further penalties and litigation costs.
Know Your Property Tax Lender
Be wary of any tax lender that tells you they can offer you a tax loan before your taxes are delinquent, unless the circumstances above are met. They are most likely basing your loan on the tax amount including late penalties. Additionally, tax assessors will not accept non-delinquent tax payments from tax lenders for properties that do not meet the qualifications based on sec 32.06 of the Texas tax code.