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Property Tax Funding Blog

Learn How Texas Property Tax Loans Work

Posted by Joe Thompson 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.

Topics: texas property tax loans, Texas property tax loan, Texas Property Tax, Texas property taxes loan, Texas property taxes

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