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What happens to those who cannot afford their property taxes

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As any property owner knows, property taxes are an annual expense that goes hand in hand with property ownership. But with the recent COVID-19 pandemic, many Texans may find themselves in the position where paying their property tax this year is something they cannot afford.

There are significant consequences for a property owner who has delinquent property taxes both financially and emotionally. It is important to know what happens when you cannot afford your property tax as well as to recognize your rights under the Texas constitution, potential exemptions on property taxes, and what you can do if you are in the position where you cannot afford to pay.

Not Paying Property Taxes Results in Expensive Penalties or Foreclosure

Falling behind on your property taxes in Texas can lead to penalty fees and payments which will only increase with time. Starting on February 1st, all counties will charge property owners with delinquent property taxes, 7% in interest and penalties. This increases by 2% every month until July 1st, when most taxing authorities in Texas will hit you with a 20% collection fee, in addition to 3% in penalties and interest.

With no cap on the interest, property owners will have their penalties and interest rise each month. In the first year alone, penalties, fees, and interest can approach 44%. In the worst case, this could ultimately lead to losing your property to foreclosure, destroying your hard-earned equity.

Your Right Under the Texas Constitution

The Texas Constitution sets out five basic rules for property taxes in the state

  1. Taxation must be equal and uniform
  2. Property must be taxed based on its current market value
  3. Each property must have a single appraised value
  4. All property is taxable unless law exempts it from the tax
  5. Right to reasonable notice of increases in appraised property value

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Exemptions on Property Taxes

There are a variety of partial or total exemptions from appraised property values used to determine local property taxes:

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

Those that qualify for exemptions can see their property tax eliminated or reduced. For those that still owe property tax, one can avoid the repercussions of not paying by getting a property tax loan.

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

Founded in 1946, American Finance and Investment Company 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 an easy repayment plan for you. AFIC can provide you with a quotation within a minute by completing the form on our homepage. We can help you pay off your delinquent taxes, and offer you the following benefits:

  • Quick, online process
  • No money down
  • No credit check
  • Free 30 day rate match
  • 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.


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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.

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