Before taking any big steps that impact your financial future, it’s important to ask questions and get as much information as possible to ensure you’re making the right decision. When it comes to deciding whether or not to apply for a property tax loan, we know you’ll have questions, and our knowledgeable team of property tax loan specialists at Home Tax Solutions would love to answer them for you. In this blog, we’ve pulled together answers to some of the property tax loan questions we hear most often.
Are Property Tax Loans Regulated in Texas?
Yes, property tax loans are regulated by the Office of the Consumer Credit Commissioner (OCCC) in Austin, and Home Tax Solutions holds a state of Texas license. In addition, all of our loan officers are licensed by the state, and we undergo periodic examinations by the OCCC. Our last audit was conducted in July 2019, and we achieved the highest possible score with no findings.
Do Property Tax Loans Create New Liens on My Home?
This is an area that causes some confusion. On January 1 of each year, a sovereign lien is automatically attached to your property by the State of Texas until your property tax bill is paid. When you receive a property tax loan, this lien is transferred to the loan provider. In the past the lien was removed after a property tax lender paid the balance. Today, a U.S. Circuit Court of Appeals ruling states that the lien will remain in place until the loan is repaid to the new lienholder.
Is Foreclosure More Likely If I Receive a Property Tax Loan?
The foreclosure rate by property tax lenders in the state of Texas is less than .5%. In fact, many people seek a property tax loan to halt the foreclosure process and stay in their homes.
Aren’t the Fees & Interest Rates for Lienholders High?
Compared with the very high interest, fees, and penalties associated with delinquent property tax bills, the fees and interest from a property tax loan are much more manageable. After a year of delinquency, most property tax bills have accrued an additional 50% on top of the original bill. The average property tax loan interest and fees are about 1/3 of this cost, and many lenders offer even lower rates. In fact, you can often find loans with options for 0% interest and/or deferred payments for a year or more, making it even more beneficial to seek a property tax loan.
How Do Property Tax Loans with Home Tax Solutions Work?
At Home Tax Solutions, we offer a range of property tax loan options that allow homeowners to repay a single year’s property taxes, multiple years, and we can even roll in taxes for the next year to help you prepay and avoid unnecessary fees and penalties from continued late property tax payments. Simply put, we do our utmost to help you break free from the property tax debt cycle and start getting your budget in order. To get started, you can simply fill out our online request form. This form gives our team the information we need to answer your questions about property taxes and offer you property tax payment options that will fit your budget.