Following the Covid-19 pandemic, the local economy was hit exceptionally hard. Consequently, unemployment rates reached record highs in Texas. According to the US Bureau of Labor and Statistics, unemployment in Texas at the end of 2020 was around 7% compared with 3.5% before COVID-19.
Many Texans have lost their jobs and now find themselves struggling to make ends meet. For Texas homeowners, they must now deal with the fast approaching deadline for residential property tax payments. Some municipalities may offer discounts if you pay your property taxes by a certain date, but this deadline can be difficult to meet. There are deferral processes and exemptions for qualifying people. However, these programs have a lot of qualification criteria and are usually aimed at senior citizens, veterans, and disabled citizens, so not everyone can use them. This means that property owners who cannot pay their property taxes often go into delinquency. The consequences for a property owner who cannot pay the property taxes owed on their principal residence can be extreme, both financially and emotionally, but a property tax loan can provide relief.
Falling behind on your property taxes in Texas can lead to significant amounts of penalty fees , interest, attorney collection fees, and payments which will only increase with time. Starting on February 1st, property owners who have delinquent taxes are charged 7% in interest and penalties in most counties. This interest rate increases by 2% every month until July 1st, when the taxing authority in most Texas counties will hit you with a 20% collection fee and an additional 3% in penalties and interest. Thereafter, interest accrues at 1% per month
There is no cap on the Interest and property owners will continue to see their penalties and interest rise each month. In the first year alone, penalties, fees, and interest can approach 44%. In the worst case, this could ultimately lead to losing your property to foreclosure, destroying your hard-earned equity.
In Texas, property owners are able to choose the company that provides them with a property tax loan. Getting a loan offers significant benefits to property owners struggling to pay their annual property tax bill:
If a property owner is delinquent on their property taxes, a property tax loan from a property tax lender can provide immediate financial and emotional relief. You (the borrower) and the lender will negotiate agreed upon terms, and the lender will pay your obligation to the county or applicable tax office. The governmental tax lien on your property is transferred to the property tax lender, and you will begin to pay the lender pursuant to your agreement.
Founded in 1946, American Finance & Investment Co., Inc. (AFIC) started by serving the financial needs of El Paso and has since grown to become one of the top property tax lenders in the state of Texas, with a complaint-free track record for over 65 years, with the Better Business Bureau.
We offer our clients an affordable, hassle-free way to ensure that your account with the local government tax office is paid in full and will work out a manageable repayment plan for you. AFIC can provide you with an instant quote by completing the form on our homepage. For qualifying properties, we can help you pay off your delinquent taxes and offer you the following benefits:
We pride ourselves on finding solutions to suit the unique needs of our clients. If you would like to discuss our property tax loans, please contact our experienced team at AFIC today.
Rates as Low as 8.0% (8.51% APR*) $25,000 loan,
$750 in Closing Costs, 120 Monthly Payments of $303.32
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Proudly Serving Austin (Travis County & Williamson County), Dallas (Dallas County), El Paso (El Paso County), Fort Worth (Tarrant County), Houston (Harris County, Fort Bend County, & Montgomery County), the Rio Grande Valley (McAllen, Pharr, Hidalgo County, & Cameron County), San Antonio (Bexar County), Waco (McLennan County) and the rest of Texas with Property Tax Loans.
YOUR TAX OFFICE MAY OFFER DELINQUENT TAX INSTALLMENT PLANS THAT MAY BE LESS COSTLY TO YOU. YOU CAN REQUEST INFORMATION ABOUT THE AVAILABILITY OF THESE PLANS FROM THE TAX OFFICE.
If you are over 64 or disabled, don’t get a property tax loan, contact your tax office about a deferral.
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