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Does a Property Tax Loan Add a Lien to My Property?

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Many Texas homeowners are unsure about liens, how they apply to their properties, and how they change with property tax loans. Many people ask us if a lien is added to the property when they take out a loan. The simple answer is that no additional lien is added, but the one that already exists is transferred to the property tax loan lender. Let’s take a look at this in a little more detail.

Property tax lien transfers

Every January, an unrecorded tax lien provided for by statute is placed on every property in Texas to satisfy the property’s taxes. This is a priority lien on the property - over and above any that may be in place as a result of mortgages and other junior loans. The lien remains in place until the tax bill is settled. When a property owner does not pay property taxes for long enough, the tax authorities can foreclose on the lien via judicial foreclosure.

So what happens if the homeowner decides to apply for a property tax loan?

If the loan is granted, the lender does not place a new lien on the property. Instead, the homeowner authorizes the transfer of the lien from the tax authority to the lender. The lender pays the outstanding amount to the tax authority, who accepts that as payment to transfer the taxing jurisdiction’s lien. The lender then holds the lien over the property until the loan is paid off. The lien thus acts as the lender’s security against the loan. Although the homeowner now owes a debt to the lender, there are also a number of benefits that arise from the lien transfer, such as lower interest, a more manageable repayment plan, the absence of crippling penalties, and the option to refinance if there are further hardships.

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American Finance & Investment Co., Inc. (AFIC) offers our clients an affordable, hassle-free way to manage their Texas property taxes and avoid crippling penalties and interest. We can 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:

  • Quick and completely online process
  • No money down
  • No credit check
  • Free 30-day rate match
  • Match competitors and beat their rate by 1%
  • Avoid high penalties and foreclosure

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.


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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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