Help! I Can’t Pay My Texas Property Taxes
5 Ways to Pay Off Your Property Taxes
Overwhelmed by an outrageously high property tax bill? Not sure how you’ll find the money to pay it? Feeling helpless? You’re not alone.
Property owners all over Texas are dealing with higher-than-ever property tax bills. Some are losing their homes because they can’t pay and face foreclosure by their taxing unit.
Don’t let this happen to you. Here’s a breakdown of your options when you’re faced with a bill you can’t pay.
Pay by Credit
If you have a high-enough credit limit, you can pay your property taxes by card. You’ll probably pay a convenience fee of a few percentage to use this option, but it can save you money in the long run.
The interest rate from your credit card company may be the best deal for your money. Also, your credit card company won’t hold the lien on your property, so you’re not at risk for foreclosure.
While it’s not an ideal option, you can pay your taxes late. Be aware of the additional costs you’ll face for delinquent property taxes, however.
Within the first year of overdue taxes, the amount due can increase by up to 47%. That would make a tax bill of $3,000 become $4,410 within just a year.
This is also a high-risk option—when you’re delinquent on your property taxes, your taxing unit holds the lien on your property. This means they have the right to file a lawsuit against you.
The end result of this lawsuit is foreclosure—they’ll sell your home to settle your debt. Even if you pay off your debt before the end of the lawsuit, you’ll have to pay the additional legal costs.
Apply for a Tax Deferral
If you’re 65 or older, a veteran, or a person with a disability, you may be eligible for a tax deferral on your home.
You will still have to pay your taxes, but the cost of paying late is reduced. Contact your taxing office to see if you qualify. They can tell you how to apply.
Arrange a Payment Plan
While Texas property taxes are set locally, there are statewide regulations that you can rely on to help. For example, the state requires your taxing office to offer payment plans on your homestead property.
This would give you more time to pay your taxes, prevent foreclosure, and reduce the overall cost of delinquency. These payment plans can be a good option, but they don’t offer a lot of flexibility.
A payment plan with your taxing office has several limitations.
- You will need to pay a portion of your debt as a deposit, up to 25%.
- These payment plans are limited to 12-36 month repayment schedules.
- All payments must be equal—you cannot pay extra on your loan when finances allow, meaning you cannot pay off your loan early.
- If you fail to pay, then retroactive penalties and interest will be added to your total.
- This type of payment plan can only be used once every two years.
If you’re going through a small rough patch, this may be the most cost-effective option.
A payment plan helps you get back on your feet if you’re confident you’ll have the money soon and won’t have trouble paying in the future.
If you’re not sure about the limited time frame, don’t have money for a deposit, or don’t qualify, you have another option.
Get a Property Tax Loan
If you have overdue taxes and need help settling your debt quickly, a property tax loan might be the best option. Property tax loans offer you the flexibility you need to recover from deep financial problems.
Here’s how it works: you apply for a property tax loan on our website. We then forward your application to a few local reputable lenders who will reach out to you and propose their terms.
When you accept any of those lenders’ loan terms, the lien on your property passes to them, and they keep it until you pay off your loan. In 99.3% of property tax loans, the lien returns to the property owner with no problem.
That means property tax lenders in Texas have foreclosed on only 0.7% of properties. This is a much better rate than your taxing unit can offer.
Here are a few features most of the lenders on our directory offer:
- A property tax loan settles your debt immediately, halting any more penalties, interest, or fees from your taxing unit. This prevents the immediate risk of foreclosure.
- Your debt is settled quickly. Once you apply online, you usually get approved for a loan within 72 hours.
- Down payment is not required. You don’t need to worry about getting the money for a deposit.
- Background checks, credit checks, or house inspections are not required. You don’t need to worry about bad credit preventing you from getting a loan.
- There are no out-of-pocket fees. Any fees associated with your loan are rolled into your monthly bill, and you’ll pay nothing up front.
- Majority of the property tax loans are customized to your needs. The payment plan you receive is usually for a much longer period than your taxing unit.
- There is no penalty for paying off your debt early. Your monthly bill is a minimum, so if your finances change and you want to get ahead on your repayment, you can do so.
- Majority of the lenders offer free title clearing. If you’re having issues with the title of your property, they will help you settle this free of charge.
Additionally, you can rest easy knowing that the Texas state government regulates property tax loans for your protection. There is a cap on interest rates, so you won’t face outrageous interest from a property tax lender.
About the Author: Direct Tax Loan is the largest online platform in the United States that connects top property tax lenders with residential and commercial borrowers. Regardless of where you are located in the state of Texas or Nevada, we’ll be thrilled to connect you with reputable lenders and help you pay off your property tax bill.