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Property Tax Funding Blog

Property Tax Lenders: An Overview & Frequently Asked Questions

Posted by Matt Longhofer on Mon, Nov 16, 2020 @ 17:11 PM

In Texas, there has been a lot of discussion about property tax loans. With the economy still lagging, many Texans are faced with property tax bills that they are struggling to pay. In this environment, many property owners are investigating whether property tax loans are good or bad. At first glance, those who owe real estate taxes and have insufficient resources may be hesitant to exchange one form of indebtedness with another. However, if you spend the time to investigate the benefits of a property tax loan, you’ll likely reach the same conclusion as countless others – Property Tax Loans Are Good! 

Are you tired of getting told no by traditional lenders? 

While banks have plenty of money to loan, they are making it available only to those with great credit. The difficulty in securing traditional financing has created a large pool of Texas property owners that need an alternative solution for their property taxes.

Property Tax Funding was formed in 2008 to provide Quick and Easy property tax loans for individuals and businesses. We’ve answered some of the most common questions we receive regarding property tax loans for those with past credit issues or poor credit ratings. 

Property Tax Loans with Bad Credit - Frequently Asked Questions:

Question: I have a poor credit history. Will I still qualify for a property tax loan?

Answer: Yes, we do not take your credit history into account when determining approval. We approve 99% of all applicants, even those with bad credit or past credit issues. 

Question: I have a prior bankruptcy on my credit report. Can I get a property tax loan?
Answer: Yes, if your bankruptcy has been terminated or discharged you can qualify for a property tax loan with Property Tax Funding. 
Question: I have several charge-offs or judgments against me that are impacting my credit. Will that be a problem? 
Answer: No, past credit problems, such as charge-offs or judgments will not impact your ability to get a property tax loan with Property Tax Funding. 
Question: I have no or little credit history. Will I still qualify for a property tax loan?
Answer: Yes, borrowers with little or no credit history can still qualify for a property tax loan with Property Tax Funding. 
Question: Is a credit check required for a tax loan with Property Tax Funding?
Answer: No, a credit check is not required. We will require your social security number so we can verify that you are not in bankruptcy.
Question: I’m currently in Bankruptcy. Can I get a property tax loan?
Answer: Normally, the answer is no. However, we recommend you contact one of our loan officers and speak to us about your specific situation.

Property Tax Funding - Get Approved for a Property Tax Loan in Texas

Property Tax Loans Good for Property Owner

If you are unable to pay your property taxes, then a property tax loan may be a good solution for you. In Texas, property tax loans are available for most property types including residential, commercial, investment properties, and raw land. This funding is an alternative to the lump sum payment of property taxes. In other words, when you can't afford to pay the tax bill in a lump sum, a property tax loan will do that for you, enabling you to meet that obligation by making affordable monthly payments.

Texas residential and commercial property owners are assisted by the availability of quick, easy, and flexible tax loans.

Things you need to know about property tax loans include: 

                    1. They are significantly cheaper than the 48% 1st year penalties charged by the tax assessor;
        1. They have simple eligibility requirements (even if you have bad credit);
        2. They provide financial flexibility;
        3. They halt all penalties from accumulating further; and
        4. The loan proceeds pay off all real estate taxes owed, including penalties, interest and attorney fees.

Property Tax Loans Good for the Taxing Units

The public taxing units benefit from a property tax loan by immediately collecting the entire past due tax balance. Revenue that would otherwise be delayed is immediately received for the school district, county, city, Municipal Utility District (MUD), hospital district, etc. Once paid, the tax assessors no longer need to take action to collect on the account, saving both time and administrative costs. 

Property Tax Loans Good for Mortgage Holder 

Preexisting first lien holders also benefit when property owners secure a property tax loan. When property owners are given the freedom of more affordable payments it is less likely that they will default on their mortgage. Since the tax loan stops the accruing of penalties that the lien holder would potentially have to pay to the county if the taxes were left delinquent, it preserves the equity in the property. Lastly, if the property owner becomes delinquent for over 90 days, the tax lender is required to notice the preexisting lienholders of the delinquency and provide them a payoff if requested. This notification procedure ensures the preexisting first lien holders’ position is protected.


Five Considerations before getting a Texas Property Tax Loan

property_tax_loans_austin_texas_best_customer_service If you owe past-due property taxes, a Texas property tax loan can offer a fast, affordable solution. The following can help you make an informed borrowing decision:

Learn how Texas property tax loans work. 

When you take out a property tax loan, the lender agrees to pay off the taxes, fees, interest and penalties owed to your local taxing authority and the lender assumes the tax lien that's already in place. In exchange, you agree to repay the tax lender the tax amount, plus interest and closing costs. A repayment term between one and ten years can be chosen to fit within your budget, so that the monthly loan payments are affordable. After you've repaid the loan, the lender files a lien release with your county, and sends you a copy.

Choose your lender wisely. 

Check the reputation of every lender you're considering with the industry's regulatory agency; the Texas Office of Consumer Credit Commissioner. Also, ask whether they belong to the Better Business Bureau and the Texas Property Tax Lienholders Association. If they're honest and reliable, they'll be up-front about the loan process and all the costs involved, and they'll service your Texas property tax loan in-house from start to finish.

Determine whether you really need a Texas property tax loan. 

If you're disabled or older than age 65, you can qualify for a deferral from your tax assessor. Another option for taking care of your past-due tax balance is agreeing to a payment plan with your tax assessor that allows you to pay off 25 to 50 percent immediately, then spread the remainder over 12 months. If you qualify for either of those options, you don't need to apply for a Texas property tax loan.  While tax assessor payment plans are available to many, they carry interest rates of 12% and offer very limited flexibility and short repayment terms. 

Investigate whether a property tax loan is the sensible solution.

Borrowing is only a benefit if taking out the loan actually saves you money or it prevents the taxing authority from foreclosing. If you owe more than $2,000, a Texas property tax loan could be the most cost-effective option. If your financial situation doesn’t allow you to get the outstanding tax balance paid by July 1st, then a property tax loan becomes a more compelling solution. After that date, the amount you owe jumps up drastically with the addition of a 20 percent collection fee from the tax assessor's attorneys, plus they can start legal proceedings to foreclose.

Compare a Texas property tax loan with other borrowing options. 

Most forms of borrowing hinge on your personal credit history, and the application and approval process is often time-consuming. In contrast, approval for a Texas property tax loan is based on an existing tax lien, so it's quick, and there's no credit check required. The closing costs are rolled into the loan, so there are no out of pocket expenses either.

You can start the easy application process for a Texas property tax loan online. If you'd prefer to speak with a friendly, licensed Property Tax Funding loan officer, call us at 877-776-7391.


See the 4 Simple Steps to Have Your Taxes Paid


Topics: texas property tax loans, Property Tax Loan, Texas Property Tax Lenders, Help Paying Property Taxes in Texas

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