If you owe delinquent property taxes, then you are at risk of foreclosure. Your taxing office will have control of your property tax lien until you can pay, and if you fail to pay, they can sue you, get a judgment against you, and then have your house sold at the public auction to the highest bidder.
As part of the foreclosure process, before Texas starts selling your home, they must give you at least 30 days’ notice of a court hearing about the foreclosure sale. The notice must inform you about the place, date, and time of the trial.
Attending the hearing, as a homeowner, you will have the opportunity to explain to the judge why the county should not foreclose your home. If all fails and your personal property has to be sold, you may repurchase it, but it will be challenging to do so.
When your homestead property tax lien gets sold at a tax foreclosure auction to a successful bidder, you will have two years to purchase your property back and regain possession; it is called a “redemption period.” Within the first year, you can buy back your property for a 25% premium added to the sale price. In the second year, this premium doubles to 50%. Commercial properties are slightly different; original owners have a redemption period of 180 days. While redemption is possible, finding financing to come up with the redemption price likely will be exceedingly difficult.
Foreclosure should be your last option for delinquent taxes. Tax lien sales might be an excellent deal for the investor, but as the property owner, you should try and avoid this at all costs. If you have found yourself delinquent on your taxes, one of the best solutions is to consider taking out a property tax loan. As a borrower of a property tax loan, you can have the versatility you need to settle your debt and avoid foreclosure. AFIC is the most creative and flexible property tax lender in the marketplace, and we will do all that we can to assist you. We don’t want to see you lose your house—we want to help you settle your debt and regain financial stability.
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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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