Foreclosure is a legal process that will begin in the event of property tax delinquency and any interest or penalties associated with your property tax bill. The tax sale process involves several steps, including public auction bidding that ends with the foreclosure sale of the home to the highest bidder. However, this doesn’t mean that you can’t get your home back after property tax foreclosure is complete. Here are some insights into your options from the American Finance & Investment Company, Inc. (AFIC) team, one of the leading property tax loan companies in Texas.
Texas state law includes a right of redemption clause, which is good news for anyone who has lost their home as the result of a property tax foreclosure sale.
Essentially, it gives you the right to buy back your home from the new homeowner by paying a specific sum of money within a certain time period.
The amounts and time period differ between states, but Texas has a fairly generous system. Generally speaking, you are allowed to buy back homestead properties and agricultural properties at any point up until 2 years after the date the deeds are filed with the county. Other properties have a far more limited period of 6 months. Once this period is over, you will no longer be able to take any legal action to get it back.
There is no set amount that you will have to pay to get your home back. Instead, the amount is calculated based on several factors, including the sale price of the property, the fee to record the property deed, and the amount the new owner paid to cover outstanding property taxes as well as any accumulated penalties and interest.
In addition, you will also need to pay a redemption premium of an additional 25% of the total amount as calculated above within the first year or 50% of this amount within the second year of the redemption period.
It is important to remember that as a property owner, you also have the right to redeem your property before the foreclosure sale takes place. To release the tax lien on your home, you need to pay the property taxes in full, along with any outstanding penalties and interest, as well as any costs incurred as part of the foreclosure process to that point. A property tax loan company cannot provide you with a property buyback loan, but we can provide you with a loan to pay the full amount of your property taxes, interest, and penalties to prevent foreclosure from occurring.
Of course, the main barrier to utilizing the right to redemption is getting access to funds during this critical period of time. This is where property tax loan companies in Texas like American Finance & Investment Company, Inc. can provide invaluable assistance. Not only can we help you explore your options when you cannot afford to pay your property taxes, but we can also supply you with property tax loans that are tailored to your specific needs.
As you can see, the costs to pay your residential property tax loan and redeem your home increase significantly as the time period passes, so we urge you to get in touch as soon as possible in order to find an effective solution as quickly as possible, whether you have property taxes that you can’t pay, are facing the risk of losing your home to a foreclosure sale or want to buy back your home.
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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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