Every year on January 1st, a property tax lien in Texas is automatically attached by appraisal districts to each taxable property. It is designed to ensure property tax is paid as it is used for schools, roads, libraries, parks, police, fire protection, and other public services. Are you wondering what a tax lien is and how it can be removed from your property? Let’s discuss it further.
A lien is a legal right or claim against assets used as collateral to satisfy a debt. There are five types of liens - a bank lien, a judgment lien, a mechanic’s lien, a real estate lien, and a tax lien. A legal judgment, creditor, or tax authority can establish a lien, giving them the legal right to seize and sell the collateral property or asset if a debt is unpaid. What taxpayers might not realize is that Texas tax liens attach to “… all of the property of a person liable for the taxes” and not only the singular homestead or business property that is being taxed.
Tax liens are statutory liens, as they are created by law and not by contract. Even if you have a bank lien on your property due to a mortgage, the Texas property tax lien supersedes the bank’s claim.
Do you own a tax lien property in Texas? Unpaid property taxes may affect your credit score and limit your ability to sell the property. The tax lien gives the courts the power to foreclose on the lien, seize the property, have it auctioned, and use the proceeds to pay outstanding taxes. When you want to sell your property, you must pay the property taxes, or the new owner cannot obtain a clear property title. Did you know that if you buy a portion of a larger parcel of land, you cannot clear the tax lien against your part until the property taxes on the whole parcel is paid?
Thinking of refinancing your home? You might not get a traditional loan until your full tax debt is paid or the lender will settle the debt at closing. Tax liens are public records in Texas, and a creditor could see you as a credit risk because of the lien.
Are you wondering how to remove a tax lien from a property in Texas? The only way is to pay your property taxes. The ideal way to release the tax lien on your property is to pay the unpaid property taxes. Contact your local tax authority and establish if they have payment arrangement options or if you qualify for a property tax deferral. Another way to settle the unpaid property taxes is by sourcing financing from a property tax loan company such as American Finance & Investment Co., Inc. (AFIC).
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.
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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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