All homeowners in the USA have to pay a certain amount of tax to their local government as property tax. Here, these taxes are amongst the highest in the country, which means that it’s easier to find yourself in a position where you’re unable to pay – especially when you are burdened with additional penalties, known as delinquent property taxes in Texas. This can result in your home facing foreclosure, a process whereby your real estate property can be sold through a court-ordered foreclosure auction to cover your tax bill. Here is some insight into tax foreclosure sales and how to avoid foreclosure by paying your property taxes.
In a tax deed sale, the winning bid secures the deed to the property, thereby becoming the new owner and having full rights to the property (free of the previous owner’s mortgage, property liens etc.)
In Texas, where there are property tax lenders, a tax led transfer can also occur. In this case, the owner of the property and the tax lender agree on terms together. The tax lender cannot get a tax lien without the owner of the property’s consent, which allows the property owner to keep a greater level of control over the proceedings. Together with your tax lender, you can work out a way to pay delinquent property taxes and move forward to a workable solution.
No homeowner wants their home taken away or their debt bought under these circumstances, so it’s important to take any steps possible to prevent a tax foreclosure sale.
First of all, the taxing authority must initiate a foreclosure proceeding through a court and you must receive legal notification that foreclosure action has begun.
Second of all, you have the right as the property owner to stop foreclosure at any point before the sale takes place by paying your unpaid property taxes, interest and penalties. This will release the tax lien on your property. You’ll find the amount you need to pay in the judgement from the court.
Finally, Texas is a “hybrid tax deed state”, which means that you, as the owner, may redeem your property any time between 6 months and 2 years after the tax sale has occurred. This is called a redemption right. This will incur some costs and repayments to the buyer of the property, including the amount the purchaser paid for the property, the amount of the deed recording fee, the tax amounts/interest etc. that the purchaser paid on the property and a redemption premium fee. The exact amount of time you have to redeem your property is dependent on certain factors like the type and size of your property, but residential homesteads generally have 2 years.
A property tax loan company like American Finance & Investment Company, Inc (AFIC) can step in and give you a loan that covers your property taxes and delinquent property taxes in Texas – no credit check or deposit required. This means fast, effective tax relief that allows you to keep your home and gives you the time you need to improve your cash flow. Our compassionate, skilled team will settle your bill quickly, stop the foreclosure process and structure your loan repayments to be as affordable as possible.
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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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