Comparing a County Payment Plan vs a Property Tax Loan
Should you get a property tax loan or a county payment plan for outstanding property taxes? To find out what’s best for you, we’ve created this guide to help you decide.
What Are the Terms of a County Payment Plan or Agreement?
- 12% annual statutory interest will still apply
- The term will be between 12 and 36 months
- In most cases, the property must be your homestead
- No prior plans may have been made in the last 24 months
- Statutory penalties and collection costs may be retroactively applied for missed payments
What’s the benefit of a county payment plan vs a property tax loan?
For small loan amounts (under $3,500), the avoidance of closing costs (generally about $750) is a material benefit that makes a county payment plan an attractive option.
County agreement or property tax loan?
A county agreement is a more cost-effective option for low balances when you are absolutely sure you can service the payments without fail. But if you need a lower monthly payment (an AFIC property tax loan payment might be as low as 10-15% of the county payment plan) or deferred payments for up to 24 months, then a property tax loan is better for you. Not only do most of AFIC’s products carry a lower interest rate than the county’s 12% interest rate, but the retroactively applied penalties and collection costs can be a debilitating amount of extra money for property owners. The other issue with a county payment plan is that you are talking to a faceless representative - you may never speak to the same person twice - and you will spend hours wading through the government bureaucracy. AFIC is an “on book” lender, meaning our family holds the loan, and you will have direct access to dedicated servicing personnel and decision-makers. Lastly, a property tax loan allows for flexibility and servicing that understands that you might have a temporary hardship. The property tax code doesn’t give the county that flexibility. They aren’t mean-spirited - they just don’t have a choice in what they can do to help people. And in many cases, it is likely the county collection law firms will soon file a suit soon after a late payment, compounding your problems.
Most counties also don’t offer payment plans for commercial property or non-homestead, single-family residential. If this is your property, then a property tax loan is what you need.
About AFIC
AFIC’s property tax loans can provide fast, affordable relief from the often unmanageable demands of county and city tax offices throughout the state. You can receive 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.
