Tips to Avoid Property Tax Foreclosure in Texas


Every year, property owners in Texas must pay their property taxes on time to avoid costly penalties and interest. These costs can approach 43% in the first year alone, and there is no cap on interest that is charged on delinquent taxes. Property owners who continue to be outstanding on their property taxes can face property tax foreclosure due to back taxes. Here we will look at strategies Texans can use to avoid property tax foreclosure and protect their home.

Plan For the Expense

For many homeowners in Texas, their property taxes are paid through their mortgage using an escrow agreement with their mortgage lender. For these owners, it is still essential to plan for the possibility that the estimates on your property value are incorrect or the tax rate estimates were too low. You may owe additional tax as the money in the escrow account could be insufficient to cover the taxes due.

It is even more critical for owners that do not have a mortgage or have taken on the responsibility to pay their property tax themselves to ensure they have sufficient funds each year for property tax. In addition to budgeting each year, look into property tax deferrals or property tax exemptions to help delay or reduce taxes. Private sector options such as property tax loans make a powerful financial product to avoid foreclosure and save on interest and penalty costs.

Use a Property Tax Deferral or Tax Exemptions

While a property tax deferral will not eliminate the obligation of paying your property tax, it will allow you to delay paying it. During this period, you will be charged interest, but there will be no penalties or delinquency charges, and you will avoid foreclosure.

Partial or total tax exemptions from appraised property values used to determine local property taxes are available to qualifying property owners in Texas:

  • Residence or Inherited Residence Homestead
  • Age 65 or older or Disabled Persons
  • Veterans
  • Charitable Organizations & Businesses

Owners who qualify for exemptions can see their property tax eliminated or reduced. Those who still owe property tax can avoid the repercussions of not paying by getting a property tax loan.


Stopping the Foreclosure Process

If your local taxing authority does begin the foreclosure process, there are still opportunities to stop it. Before foreclosure, you may pay off any overdue amounts, penalties, and interest during the process allowing you to avoid foreclosure. Using a property tax loan is an affordable and effective way of avoiding he high interest rates and foreclosure possibilities that come with unpaid property taxes.

Use a Property Tax Loan

By using a property tax loan, your lender will pay any outstanding amounts to the taxing authority. You will then make regular monthly payments to the lender, allowing you to avoid further costs associated with tax delinquency and preventing foreclosure. Many property tax loans feature flexible terms that allow for early repayment and affordable monthly payments. By taking advantage of a property tax loan, the money you save on interest can go towards other priorities, such as saving for emergencies or paying the property tax down even faster.

We Provide a Solution for Property Owners Owing Property Tax in Texas

Founded in 1946, American Finance & Investment Co., Inc. (AFIC) started 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 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.

Ernest Eisenberg

Ernest Eisenberg, President of American Finance & Investment Co., Inc. (AFIC), brings a wealth of expertise in non-traditional financing, including property tax loans and non-bank mortgage solutions. His vision is characterized by a commitment to offering flexible financing solutions to Texas property owners.

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APR between 8.0% and 25.0% for loan terms between 12 and 120 months. For example 8.5% APR, $25,000 loan, $750 in Closing Costs, 120 Monthly Payments of $303.32.


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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