Paying Late Property Taxes in Texas: What to Know
Failing to pay property taxes on time in Texas can lead to serious consequences for both property owners and the community, as local governments rely on these funds for essential services such as schools, roads, and public safety. How does it affect you as a residential or commercial property owner?
What Happens if You Don’t Pay Your Property Taxes?
Staying on top of property tax deadlines is crucial, as penalties and interest start accumulating right after February 1. If taxes remain unpaid, legal action may follow, and in some cases, this could lead to losing your home or business property. Some counties move swiftly to collect unpaid taxes, while others may take longer, but the possibility of a lawsuit remains. Taking proactive steps now can help you avoid overwhelming stress and financial strain later.
The Consequences for Delinquency in Texas Are Severe
Property tax delinquency in Texas can result in severe financial consequences. Did you know collection fees, penalties, and interest on unpaid property taxes can accrue to 48% of your original tax bill in just the first year?
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Stiff Penalties and Interest
Here’s a breakdown of the penalties for late property tax payments in Texas:-
1% interest per month on the unpaid balance.
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A 6% penalty is applied if unpaid by February 1.
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By July, the total penalty (interest + original penalty) will be 18%.
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A 24% collection fee can be added if unpaid by July 1.
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When Collections Attorneys Get Involved
- On July 1, collections attorneys receive the delinquent property tax accounts list from local tax assessors. They start sending out notices, and collection fees are automatically added to your overdue account in almost all counties. The lawyers then file a suit against you as the property owner.
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The Long-Term Repercussions of Delinquency
- If a suit is filed against you for delinquency and you fail to respond, it may result in a judgment against your property that includes all past-due property taxes and court costs. Do you have a mortgage on the property? Not paying your property taxes might force your mortgage company to pay them, and that may lead to a torrent of very bad consequences, including calling a default on your mortgage.
For many homeowners facing financial hardship, delinquent property taxes in Texas can quickly become overwhelming as penalties and interest accumulate each month. If left unpaid, these taxes not only increase the financial burden but also carry the risk of foreclosure. To avoid these severe consequences, it’s essential to understand available options, such as property tax loans, which offer a manageable way to resolve overdue taxes while preserving homeownership.
How to Get Back on Track if You Missed the Property Tax Deadline
When you realize you missed the property tax deadline, don’t panic; there are steps you can take to resolve the matter. What are these steps?
Step 1: Stay Calm and Develop a Plan of Action
Staying calm is key, as you’re not alone in facing late tax payments. Many Texans experience delays due to financial issues, illness, or other circumstances. Take a moment to assess your next steps: What resources are available? What’s your long-term plan for retaining your property? And could a property tax loan be the solution?
Step 2: See What Payment Arrangements Are Available
Even when you have delinquent taxes, you can contact your local taxing authority to find out if there are payment arrangements you can make. Every county has different options, but asking for help is another step to making your tax bill manageable.
Step 3: Find Out if You Are Eligible to Appeal Your Late Property Tax Bill
Did you know you can appeal your late property tax bill under certain circumstances? Are you eligible for a property tax exemption? If you are concerned about the appraised (market) value of your property or feel the value of your property is unequal compared to others, these might be grounds for appeal.
Step 4: Prevent Any Additional Penalties by Settling Your Bill as Soon as Possible
The quickest way to stop penalties, interest, and collection fees from accumulating is by securing a property tax loan to settle the bill. Property tax loans can address both temporary financial setbacks and long-term challenges. If you’re facing a short-term hardship, a property tax loan offers manageable payments that provide breathing room. For more permanent situations, AFIC offers property tax loans with no required payments for up to 24 months, giving you time to sell or refinance at full market value without the stress of property tax collections. Whatever the case, don’t ignore your property taxes—they won’t go away!
How a Property Tax Loan Can Help
Tax-delinquent properties don’t have to be a liability. A property tax loan can help you pay the account quickly to cut down on penalties and interest.
A property tax loan is simple to obtain, with no down payment or credit check required. Once your application is approved, the lender - like us, American Finance & Investment Co., Inc. (AFIC), will immediately pay the debt you owe to your local tax authority. Your account with the county, no matter how overdue and loaded with penalties and interest it may be, is settled and reset to zero instantly. The tax lien that the county has held over your property up to this point is transferred to the tax lender.
However, the fact that the tax lender now holds a lien for your property is not something that should worry you. While your tax authority may likely use that lien to foreclose on your property, this is not in a tax lender’s interest. Tax lenders are not in the business of acquiring property through tax liens. It is a long, slow, and expensive process that is bad for all parties. We are here to provide financial services to homeowners and other property owners that enable them to pay their debts and retain their properties. Once your debt to the county is paid, you can start paying off the loan, and the most significant benefit of tax lenders is that they enable you to pay your debt in a way that is financially manageable for you. The terms are flexible, and we will design a customized repayment plan that aligns with your financial means. This is in contrast to county tax repayment plans, which usually involve inflexible, dictated terms.
In summary, Texas property tax loans are designed to provide peace of mind for the state’s homeowners. The principal debt is paid, and you face no more penalties and interest, which would otherwise accrue from month to month as you leave your account unpaid. The risk of foreclosure is removed, and you get to work with a financial service provider that understands your needs and circumstances and makes appropriate adjustments. A property tax loan is the best way to eliminate your debt, keep your home, and set your mind at ease - even if you have allowed your account to remain unpaid for a long time.
Why Choose AFIC as Your Property Tax Lender?
Founded in 1946, AFIC is a trusted, family-run business with over 100 years of combined experience in the financial industry. Our complaint-free, 65+ year Better Business Bureau track record reflects our dedication to customer service and helping families retain their properties. We operate with substantial equity funding, not relying on third-party banks to make credit decisions, and proudly support local Texas institutions, including the University of Texas at El Paso, the El Paso Holocaust Museum, and United Way of El Paso.
We provide an affordable, hassle-free solution to pay your local government tax bill in full, with flexible repayment options tailored to your needs. 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.
