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Property Tax Funding Blog

What is Property Tax Lending?

Posted by Joe Thompson on Thu, Jun 05, 2014 @ 06:06 AM

what is property tax lendingIf this is the first time you've had difficulty getting your taxes paid, you may have just heard about property tax lending and want to know more. So what exactly Is property tax lending? It's a specialized type of lending that gives Texas property owners a cost-saving alternative to huge tax assessor delinquency fees.  What many property owners don’t know is that tax assessor penalties can increase your tax bill by 48 percent in just twelve months. Let's answer some other key questions:

Is Property Tax Lending Regulated?

Yes. Property tax lenders in Texas are licensed and regulated by the Office of Consumer Credit Commissioner (OCCC), which regulates many key credit industries in Texas. The loan officers of reputable property tax lenders are also licensed through the National Mortgage Licensing System (NMLS), which requires considerable training, stringent testing, and continuing education.

Is Property Tax Lending New?

No. The original law that made this type of borrowing available was passed in 1933. It's known as the Tax Lien Transfer Law, and it's been revised and amended in the years since to enhance the protection it provides to property owners. Since it became law, property tax lending has helped more than 100,000 Texans get back on a firm financial footing and retain ownership of their properties.

How Does Property Tax Lending Work?

Taking out a loan for property taxes involves transferring the lien that's put on your property every January 1st by your local tax authority. When you sign a loan agreement, the lender pays off your debt to the tax assessor and assumes their lien. Instead of paying the tax collector, you pay the lender back over an agreed time period. When the loan is paid in full, the lender releases the lien on the property.

Who Can Benefit From Property Tax Lending?

Any Texan who owns property can turn to this type of borrowing if they fall behind on their yearly taxes. Homeowners, investment property owners, landowners, and commercial property owners who aren't in bankruptcy proceedings can all qualify. Most lenders have minimum property value and minimum loan amount requirements.  While most people will qualify, new tax lending laws prevent homeowners that are 65 or older from receiving a tax loan if they occupy the property as their primary residence.

If you're delinquent on property taxes and you'd like to learn whether a property tax loan can help save you money or avoid foreclosure, contact us at Property Tax Funding by calling 877-776-7391, or using our easy online application form.


Topics: property tax lending, Texas Property Tax Lending, Property Tax Lending Texas, Property Tax Lenders, property tax lending in Texas

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