Property and Real Estate Resources

While the recent recession and economic crisis have made it difficult to secure many types of loans, Texas property tax loans stand out as an exception. Texas continues to report some of the highest property tax rates in the country and with real estate values holding up well in this state, there has been little tax relief for property owners.  Given the high rates and the ever present challenges in the economy, property owners should know that delinquencies can be addressed with a property tax loan before penalties, interest, and possible foreclosure by the county.

With the economic crisis worsening, property tax lenders expect a record number of borrowers in the months ahead.  If you are interested in a solution for your delinquent property taxes, these frequently asked questions may assist your search.     

Q: What is a property tax loan and how can it help me?

A: Property taxes are due in a lump sum by January 31st.  The amount of tax due increases every month thereafter until the taxes are paid.  A tax loan consolidates the delinquent taxes, accrued penalties, interest, and any legal fees owned on the property into a loan with affordable monthly payments. The taxing authority´s existing lien is transferred to the property tax lender as security for the loan. 

Q: What type of property will qualify for a Property Tax Funding loan?

A: Loans are available for almost any type of real estate as long as the borrower is not in bankruptcy, there is no IRS lien on the property, and the property is reasonably maintained. This includes residential, commercial, investment properties, and vacant land. 

Q: What if I’ve had past credit problems?

A: Credit history is typically not an issue, except in cases of current bankruptcy.  Loans are approved for most applicants, even those with not so perfect credit.  All loans are subject to income verification

Q: How long does the loan process take?

 A: From the time the application is completed the closing can occur in less than a week.  Applications can be taken online or over the phone.  Loan closings are typically handled with a mobile notary that comes to a location convenient to the borrower. 

Q: How much money can be saved by avoiding interest and penalties on a delinquent property tax bill?

A: Penalties and interest are set by state legislature and begin to accrue on February 1st.  While county rates vary, you can expect penalties, interest, attorney fees and court costs of 37% to 44% per year.  It´s easy to see how a property tax loan can save thousands in penalties and interest, while more importantly, avoiding foreclosure and lawsuits by the taxing authorities.

Q: What are some considerations when choosing a property tax lender?

A: In addition to choosing a lender with years of experience and specialization in property tax lending, only work with a lender who is licensed by the state of Texas.  You can validate if the property tax lender is licensed to make property tax loans in Texas with the Office of Consumer Credit Commissioner.   http://www.occc.state.tx.us/pages/searches.html

You can also learn more about Texas property tax loans by contacting Property Tax Funding at http://www.propertytaxfunding.com/ or calling a loan officer at 877-776-7391.

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Property Tax Exemptions for Nonprofit, Faith-based, Welfare and Veterans’ Organizations Property tax exemptions require a procedure and are not automatic. If you need more information about your specific nonprofit Property tax question, please send us an email please visit: www.boe.ca.gov

Help answer the question about property taxes

How to report property taxes on tax refund when changed property during the year?
We sold our house and bought another one in the middle of the year. What property tax amount should i report on my income tax return? The full amount of taxes for the new property or should I report the pro-rated amount I gave the buyer of my old property and the amount paid on the new property minus the pro-rated amount the sellers gave me on my new property?
Hope this makes sense……

About Author

Jason Keller -
About the Author:

Jason Keller has extensive experience in real estate valuation and property tax assessment. Mr. Keller is the Director of Property Tax Services within the Private Lending Group at Resolution Finance.