The festive season is over and, as all property owners in Texas know, it’s time for tax season. If you have found yourself in a position where you cannot pay your property taxes, it’s important to know what your options are. Here is some advice and insight from American Finance & Investment Company, Inc. (AFIC), the specialists in property tax loans in Texas.
Property taxes are due after January 31st of each year, and it is possible to pay your taxes late. However, you will be subject to stiff penalties, including a penalty from the first business day in February, which amounts to 6% of your original tax bill, and interest. For each month that you are overdue, an additional 2% between penalties and interest will be incurred. Depending on your county, there may also be a collection fee attached to your bill on July 1st, which may be as high as 20% of the total bill.
As you can see, this can dramatically increase your tax bill. So, while it is an option you can choose, it can become very expensive. In addition, the non-payment of your tax bill may trigger the foreclosure process, allowing the local government to sell your property to cover the bill.
Under certain circumstances and subject to your county’s legislation, you may be able to apply for tax deferral. It’s best to check directly with your local tax office to see if you qualify. But, generally, they are only applied to residents who are 65 and older, have qualifying disabilities or qualify as a veteran. This doesn’t mean you won’t have to pay your property taxes, but it will mean that late penalties are halted, interest is kept to a minimum, and the county cannot foreclose on your home, until after you move or pass away.
It is a legal requirement that your local tax collection office offers property owners payment plans to help pay off their residential property tax loans as well as penalties if you are a homestead owner. They can also offer non-homestead owners the same plans on request. Plans will vary from county to county and even between different taxing units, so it’s vital to speak to your local office directly. While you have until March 1st to organize a payment plan through the tax office, it’s important not to waste any time as interest and penalties will still accumulate on your account from the first business day in February.
In Texas, you can apply for both residential and commercial property tax loans from state-licensed property tax lenders like AFIC. With us, you can get a quote for a loan to pay property taxes instantly, so you can easily compare our offering to any other payment plans available to you. In this option, the property tax lenders pay your property tax bill in full (including interest and penalties) using a loan that you then pay back over a certain period of time. AFIC designs these loans to be as affordable as possible to not only allow you to get back on your feet financially, but also to save for your next property tax bill more easily. These loans are not usually reported to credit bureaus and agencies, so they should not affect your credit rating.
AFIC is a fourth-generation, family-owned property tax loan provider in Texas that offers homeowners quick, convenient assistance in paying their property taxes. Our solutions are affordable and simple, requiring no money down and no credit check – we’ll even bring all the paperwork to you at your convenience.
Our friendly team works hard to put your interests and needs first. So, don’t hesitate to contact us for property tax loans in Texas. You can also get a loan estimate now by completing the form below.
Get your estimate in under 1 minute!
Fill out the form below to start your loan quote
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, Phar, 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.
OCCC License #159698 • NMLS #1778287