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Who Faces Difficulties Affording Their Property Taxes?

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Covid-19 has created a debilitating global financial landscape, but a greater number of Americans say that they have experienced a negative economic impact than people in other countries. Since businesses were forced to shut their doors to limit the pandemic’s scourge, millions of people have been left unemployed and exposed to financial risk. A record 20.5 million jobs were shed in April, moving the unemployment rate to 14.7% - the worst the U.S. has seen since World War II.

How mortgage delinquencies may affect property taxes

Major companies Boeing, Ford, and General Electric are only a few who have felt the economic sting and subsequently had to cut jobs and report significant losses. While almost every individual knows someone who has become unemployed during the pandemic, it’s these significant job cuts that will have a resounding effect on families for quite some time. The mortgage delinquency rate has spiked to 8.22% in the second quarter of 2020 due to Covid-19. It is also the highest delinquency rate since 1979, which includes loans where at least one payment of their property accounts or property taxes has been missed and loans in forbearance. Fitch Ratings reports that while there were significant defaults and forbearances during the 2008 economic crisis, there was a minimal decline in property taxes’ collection. Fitch further predicts that a spike in unemployment and a drop in income will have a negative effect on sustainable home prices and lead to overvaluation of the market value of properties. While individuals may not be able to pay their taxes during an economic fallout, mortgage servicers may be obligated to advance property taxes. However, some local governments have waived fines for late payment or have postponed deadlines for property taxes for property owners who can prove that Covid-19 has impacted their ability to pay, but no such government has done so in Texas.

Each year, the local tax office will mail tax bills (usually in October) to tax payers in their jurisdictions. These bills will detail the amount that the County Appraisal District (CAD) has determined as a fair taxable value of property you own. You will then have until the end of January to pay your taxes. If you do not meet the due date of 31 January for your property tax payment, it may result in your current taxes being classified as delinquent from as soon as February 1. In accordance with the Texas Property Tax Code, if you do not agree with the appraisal amount, or if you have any disputes, you may protest the amounts with the Appraisal Review Board. Non-receipt of your tax statement from the taxing unit does not exempt you from payment, nor does it affect the validity of the tax, penalties due, delinquency date, the existence of a tax lien, or any procedure that the taxing unit may have instituted to collect the tax. So, if you have not received your bill, you will need to follow up or you will go into delinquency.

If you meet specific criteria (including senior citizens over the age of 65, veterans, charitable organizations, or if you are disabled), you may qualify for discounts, payments through installments, split or partial payments, deferrals, or residential homestead exemptions. These alternative payment options may be worth exploring if you are struggling to pay your property taxes in order to avoid delinquency.

Delinquent taxes can have serious consequences, from accruing penalties, interest, and attorney collection fees, to your home being put up for auction by the municipality and sold to the highest bidder (even if the ownership has changed). If the courts decide to foreclose or auction the property, the proceeds will be used to pay any outstanding taxes and fees. The interest on your overdue tax account accumulates exponentially, and the rapid increase in the amount owed by taxpayers often results in the end payment amount being too much to handle.

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Assistance in paying your property taxes 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.


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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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