A Guide to Property Tax Loans with Texas Property Tax Loan Pros
We could all use some help with our property taxes every once in a while. If you need some assistance, the only option you might have to keep your house is to apply for a loan. However, loans can be tricky, no matter what type they are, and the same is true with property taxes. If you need a loan, that last thing you want is for it to result in even more financial problems. Find out more about Texas Property Tax Loan Pros. So, follow our tips to make sure your property tax loan helps and not hurt you.
1. Don't avoid making payments
Trying to avoid a problem doesn't make it disappear. That is even more true about taxes. Failing to pay your property taxes can potentially be one of the more expensive mistakes you could ever make. By law, your county or other taxing units can fine you if you miss payments. The penalty charges may cover attorney fees and interest and range from 24 up to 47% in just the first year, and each year it grows. If it all comes down to applying for a loan or ignoring payments, a loan can truly be a lifesaver.
2. Find the best lender.
Not every Property Tax Lender is equal. First of all, lenders are required to be licensed in your State. To confirm that your lender is licensed by your state, ask for their license number. Do not agree to work with them if they refuse to give it to you. Do some research on anyone who will be handling your property by checking their BBB rating. After selecting a lender, be sure to get as much information as possible about your options, including grace periods. That way you will know what you can expect.
3. Understand what the purpose of your property tax loan is.
The reason why Property Tax Loans are available is to prevent tax units from having to foreclose on properties. This basically allows you to keep your house. If you reach the point where you cannot pay all of the taxes you owe, the expenses can be covered by the lender, and set a payment plan up that will allow you to repay your loan that works with your individual financial situation. After your taxes have been paid by the lender, the lien placed on your property will be transferred to the lender from your taxing unit which gives them the right to be able to foreclose on your property in the event you default on your loan. In other words, getting a tax property loan will allow you to keep your house, get a payment plan set up, and directly communicate with the party who controls the finances on your property.
4. Property tax loans have perks.
Your property tax lender is ultimately there to assist you. Property tax loans were designed to prevent the collection fees, interest, and penalties from piling up, and to allow you to get your finances settled. A majority of lenders do not require any upfront payments. Also, most of them will stop the taxing unit immediately from pursuing a lawsuit against you. Usually, property tax lenders charge less per month compared to a county payment plan. You can also pay extra or early if necessary, without getting charged an extra fee.
5. Know what your options are
With property taxes, there are different options that are available. For some, it isn't even necessary to apply for a loan. If you are disabled or over 65 years old, you can obtain a tax deferral. This allows you to not have to pay taxes until you are no longer disabled or leave the property. If you receive a tax deferral, interest will incur at the rate of 8%. However, you will not be charged any penalties. Another option is to visit your tax office directly and get a plan set up. Tax offices are required by law to offer payment plans. That means you can avoid getting a loan. The option is available for three years maximum, and during this time interest will accumulate. Applying for a property tax loan is the final option. If you select the right property tax lender, you can easily get through this process.