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The History of Property Tax Lending in Texas

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In Texas, lawmakers started tightening tax policies and improving tax collections at the end of the 19th century. Unfortunately, they lost much of the progress made during the Great Depression in the 1930s. Around this time, property tax lending in Texas started its long history to help struggling property owners avoid foreclosure. Today, new regulations have been made to protect consumers and homeowners, making property tax loans a powerful product for preventing foreclosure.

1933 - Property Tax Lien Transfers

With the Great Depression putting significant pressure on property owners to pay property taxes, property tax lien transfers were permitted by law, allowing third parties to pay someone else’s property taxes for the first time. The majority of these loans were from a property owner’s family or employer. It was not until 1995 that property tax lending started to become commercially available.

1995 - Major Changes to Texas Tax Code

With the large increases in property tax rates and home values seen in Texas in 1995, politicians made significant changes to make property tax lending a commercially feasible option. Many of these changes made property tax lending a more profitable investment for companies, including increases to interest rate caps and the ability of non-judicial foreclosures, allowing lenders to foreclose on properties without a court order. Although expensive, many property owners faced record-high property taxes, and many would have had to foreclose without a property tax loan.

2006 - Texas Property Tax Lienholders Association

With property tax loans gaining traction, the Texas Property Tax Lienholders Association (TPTLA) was founded to raise awareness for the property tax loan industry and promote high standards of behavior for its members. The TPTLA is a statewide alliance of companies committed to upholding high standards of ethical conduct. Initially founded with three members, the TPTLA has grown to twelve member companies, including American Finance & Investment Co., Inc. (AFIC).

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2007 - Property Tax Lender License Act

Shortly after the foundation of the TPTLA, the 80th Texas legislature enacted the Property Tax Lender Licence Act, bringing the industry under the oversight of the Office of Consumer Credit Commissioner (OCCC). All property tax lenders were now required to obtain a license from the OCCC. The TPTLA and its members began working with the OCCC to ensure Texans could access fair and cost-effective alternatives to delinquency. Additionally, the Act added an 18 percent cap on interest rates to limit borrowing costs for homeowners.

2013 - Senate Bill 247

The next major event in property tax legislation in Texas occurred in 2013 with Senate Bill 247. Supported by the TPTLA and its members, the bill established further protections for property owners that use property tax loans. It eliminated non-judicial foreclosures, meaning property tax lenders must obtain a court order to proceed to foreclosure. Also included in the bill were other consumer protection legislation prohibiting deceptive advertising.

We Provide a Solution for Property Owners That Owe Property Tax in Texas

Founded in 1946, AFIC began by serving the financial needs of El Paso and has since grown to become one of the top property tax lenders in the state of Texas, with a complaint-free track record for over 65 years with the Better Business Bureau. We are also a member of the TPTLA, with our President, Ernest Eisenberg, on its Board of Directors.

We offer our clients an affordable, hassle-free way to 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.


Loans For Your Delinquent Property Tax
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Rates as Low as 8.0% (8.51% APR*) $25,000 loan,
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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.

OCCC License #159698 • NMLS #1778287