Texas residents are fortunate to not have a state income tax. However, that means the burden from property taxes is often quite high. Moreover, those taxes have increased by more than 200 percent in the past two decades, and are expected to go even higher.
Such increases mean a larger portion of your income must be allocated to meet your tax obligations. If you face financial difficulties for any reason, it may seem easiest to put off paying your taxes. However, that is a very expensive and risky proposition.
Just one year’s worth of extra fees on delinquent property taxes can add as much as an additional 48 percent to clear the tax obligation. While that is bad enough, the local tax assessor holds a lien on your property and, if your taxes remain unpaid for too long, the tax assessor can seize your property through auction for the amount due on taxes and penalties.
Fortunately, Texas pioneered the concept of tax lien transfers to help you avoid that worst case scenario. If you are unable to pay your taxes, you can turn to a firm such as Property Tax Funding for help and quick relief.
When you use a company such as Property Tax Funding, they step in and pay the taxes due, and allow you to repay them over a longer period of time. Instead of accruing these very high penalties, you simply make the affordable monthly payments until you have paid off the tax amount. In the meantime, Property Tax Funding assumes the lien position (through the tax lien transfer) and you won’t have to worry about owing the tax assessor or receiving nasty letters from their attorney.
Market Changes Result in Property Tax Lending Declines
If you need help with your outstanding property taxes, there are a few additional things you should know about how the process works and the companies that provide property tax lien transfers. These firms provided more than 15,746 tax lien transfers in 2013. Proving how helpful these loans are is the fact that only 103 properties were subsequently foreclosed, a rate of less than .25 percent.
While the use of a tax lien transfer, otherwise known as a property tax loan, is an important method used by many Texas residents to protect their homes, the number of delinquent property owners seeking this solution has declined in recent years. For example, while more than 15,000 such loans were made in 2010 for a total of more than $193 million, that total was down to 13,471 loans (totaling just almost $165 million) in 2014.
While part of this decline was due to the improving economy, there has also been a reduction in the number of licensed property tax lenders. Through industry consolidation and a more competitive market for their services, the industry has narrowed to a shorter list of stronger lenders who are well financed and committed to serving the market.
Property Tax Funding has been serving Texas property owners with low cost tax loans since 2008 and continues to be one of the most successful property tax lenders today. We are committed to the long-term and our many satisfied clients are evidence of how we fulfill that commitment.
If you are facing a property tax deadline, call us today or visit our website to stop those penalties from being assessed. We will answer any of your questions and help you gain the peace of mind you want and deserve.
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