A property tax loan is when property tax lenders pay your taxes and in return work out with you an affordable repayment. This allows for residential and commercial property owners in Texas to bypass penalties, interest, and legal fees on their delinquent property taxes. The Tax Collector transfers the tax lien to the property tax lender, providing the lender with security and ensuring they are paid under the payment plan.
If you are unable to pay your property taxes, your local taxing authority will start charging interest and penalties on your tax account, thereby making your property taxes more unaffordable to pay. This interest typically accrues monthly, monetary penalties are also incurred. A property tax loan can assist in avoiding impending penalties, interest, and collection fees that the county imposes on unpaid property taxes. In return, saving you money.
As of 1 February, your tax bill will accrue a 6% penalty. The penalty will increase by 1% monthly until it reaches a maximum of 12% on 1 July. Delinquent property taxes may also accrue a further penalty of up to 20% added as of July 1st. This delinquency penalty is 20% of all property taxes, penalties, and interest accrued to that date, and is used to cover legal fees when property taxes are handed over to attorneys for collection. Court and other fees may also be later added, if the county files suit against you.
Texas has no income tax, most of the funding for state and local government comes from property tax. When a taxpayer finds he is unable to pay his tax bill, tax loans are available to save from paying additional penalties and interest. Texas property taxes are subject to steep penalties and tax loans help property owners avoid them. Interest and penalties on property taxes can be around 43% in the first year alone.
Paying back a tax loan is usually an easy process as most property owners are given between three to ten years to do so. Even with the interest, tax loans help to save property owners money. It is not unusual for a property owner to save money while having manageable payments by taking out a tax loan versus paying penalties and interest to their tax collector.
American Finance & Investment Co., Inc. (AFIC) can assist by offering low monthly payments and helping to rescue your properties from foreclosure. As one of the leading property tax loan companies, we can assist by paying your tax bill on your behalf - saving you from having to pay penalties to the tax collector. The qualifications are easy, American Finance & Investment Co., Inc. (AFIC) will set up a repayment plan with the property owner and a loan can be closed, in some cases, the same day, with funding shortly thereafter. To prevent possible foreclosure by the county, the quick loan process allows for the property owner to preserve their equity.
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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, 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.
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