Tax Loans Provide Help with Property Taxes
If an owner fails to pay the taxes due on a piece of property, the fines and interest owed add up quickly. In some cases, tax authorities can increase the amount due by up to 48 percent in the first year by imposing fines, penalties, and interest charges. After the 1st year, the tax assessor will continue to add interest to the tax amount and chances will increase that the property will go into foreclosure for non-payment of taxes.
When owners need help with property taxes, they need a reasonable solution. For those with property in the state of Texas, an 80-year-old law offers an alternative to massive penalties and foreclosure by tax authorities. Back in 1933, Texas put a law in place that allows a property owner to authorize a third party, such as a property tax lender, to pay their past due taxes. That law, which is still in effect today, has led to a specialized group of tax lenders who focus exclusively on helping property owners with their past due property taxes.
How Does a Property Tax Loan Work?
By virtue of the Texas tax code, on January 1 of each year, a tax lien attaches to property to secure the payment of all taxes, penalties, and interest ultimately imposed for the year on the property. The lien exists in favor of each taxing unit having power to tax the property. When you pay your taxes in full, this lien is automatically extinguished. Typically, a property cannot be sold until all liens are satisfied, including tax liens.
A property tax lender can help owners with tax liens due to unpaid property taxes. They lend the money to cover the amount due. After the taxes are paid, the tax lien from the taxing authority is transferred to the property tax lender. The property owner then makes monthly payments to the tax lender until the loan is paid off. Once the loan is paid off, the tax lender releases the tax lien, just as if the taxes were paid directly to the tax assessor.
These loans are strictly regulated by state tax, finance, and administrative codes that protect the borrower and the lender.
What are the Benefits of Getting a Property Tax Loan?
Owners who use the services of a property tax lender will see benefits, both long and short-term:
- Immediate pay off the past due tax balances
- Make low monthly payments
- Pay less in interest on the loan compared to the tax assessor penalties and interest
- Get repayment options, up to 10 years.
- Get relief with no money down and even with bad credit
- Stop foreclosure due to the tax lien
If you have past due property taxes and no immediate solution to the problem, contact Property Tax Funding. We have been making property tax loans since 2008 to property owners all over the state of Texas. We are “A” rated with the Better Business Bureau and have built a solid reputation of providing financing help with property taxes. Give us a call today at 877-776-7391 to ease your worries and lighten that tax burden.