Property Tax Loans vs Lien Transfers – Is There a Difference?

Many people move to Texas because of the low income taxes, but while our income taxes remain still some of the lowest in the nation, property taxes are some of the highest. In fact, several cities in Texas rank in the top ten highest property tax rates nationwide. For this reason, offering property tax loans and lien transfers has become a huge business in the state of Texas, but not every company that offers property tax loans or lien transfers is created equally. Before you sign on the dotted line, take some time to better understand the difference between property tax loans and lien transfers. At Home Tax Solutions, we can help you better understand your property tax loan options and make the right decision for your family. Most importantly, we’re here to help you avoid the hefty penalties attached to late payment of property taxes.

Property Tax Loans

Property tax loans are traditional loans or lines of credit (like a home or car loan or a credit card). You agree to borrow the amount of your property taxes and repay the loan in a set time frame. There may be additional terms included such as interest rates and other fees. These loans are separate from the property tax lien placed on your home due to failure to submit property tax payment on time.

Property Lien Transfers

When your property taxes are delinquent, a lien is automatically placed on your home. A lien transfer is a property tax loan that is secured by the lender who takes control of the lien on your home. That means if you do sell your home or enter foreclosure, the property lender will receive repayment before you or your bank are paid. These lien transfers may make it possible for lenders to offer improved terms.

Which is Right for You?

Both of these options are viable, and you will often hear the terms property tax loan and lien transfer used interchangeably because they are very similar. When you work with a team like Home Tax Solutions, you know that we will always keep your best interests in mind when helping you pay off your property tax and break the debt cycle. We will also tailor a custom solution to fit your needs. The easiest way to understand your property tax need is to get started working with one of our team members. We have five offices throughout the state that allow the Home Tax Solutions team to offer our services for all 254 Texas Counties. Give us a call at an office near you to learn more from our Texas property tax loan specialists. We are dedicated to helping Texas property owners pay off their property tax debts without placing additional financial strain on your family.