What to Do During a Property Tax Collection Lawsuit in Texas
Are you going through a property tax collection lawsuit in Texas? Property owners in Texas are subjected to some of the highest tax rates in the country, and following the economic and financial uncertainty we experienced last year, it’s no surprise that many people across the state are struggling to afford their expensive property taxes. Unfortunately, once a homeowner misses the deadline (delinquency date) set out by the appraisal district and its appraisal review board, their taxes become classified as delinquent. Delinquent taxes have serious consequences and can result in tax entities filing lawsuits against you. The municipality may even seize your property and put it up for a foreclosure sale where the proceeds from the winning bid will be used to pay your outstanding taxes.
When you’re no longer able to pay your property taxes, your tax collector or their assigned collection law firm may choose to file a lawsuit against you to collect the delinquent tax. Unfortunately, thousands of people find themselves in this situation year after year, and they aren’t sure what to do.
Taxing entities will sue for a full financial judgment, including the amount of the original delinquent taxes, all penalties and interest, the law firm collection fees, and all court costs, abstract fees, and lawyers/attorneys fees. All of these costs, especially if you already can’t pay your property taxes, can seem like too much to handle.
If your property tax assessor-collector has filed a lawsuit against you for non-payment of the tax, here’s what we recommend you do:
- Stay calm. We understand that receiving a notice from an attorney can make you feel anxious, but receiving a notice doesn’t mean you’re going to lose your home. Most people are contacted in the first instance to inform them that a lawsuit will be filed against them if they don’t act, meaning they still have time to apply for a property tax loan from a registered lender or tax exemption to stop the lawsuit from going forward.
- If you do not agree with your property’s appraisal value (tax amount), you can protest the valuation by filing a dispute with your county appraisal district. However, once you are being sued, it is already too late to claim overcharging as a defense.
- When you receive a property tax lawsuit notice, it is critical to respond promptly. Texas law requires you to reply within a set timeframe, or the taxing authority can request a judgment against you, including penalties, interest, and attorney fees. Failure to act can lead to foreclosure, so it’s essential to take immediate steps to protect your property. If you’re unable to pay, explore property tax assistance or inquire about property tax exemptions for potential relief. Contact your local appraisal district if you have concerns about your property value or the assessment. By responding quickly, you can avoid escalating legal fees and potentially find solutions like payment plans or tax relief programs to help manage the debt.
- Do your research. When you hear the word “lawsuit” you probably think of two parties coming together to reach a settlement, but this isn’t how property tax collection lawsuits work. If you’re being sued over unpaid property taxes there is no such thing as a partial settlement or debt forgiveness, and your tax collector will be able to order you to pay the full amount you owe. If you don’t have access to the funds, your home can be foreclosed upon and sold to the highest bidder at a public auction conducted by the sheriff. Understanding how a property tax collection lawsuit works will help you navigate the process.
- Pay your debt as soon as possible. Whether you take out a loan to pay your property taxes or find the money another way, we recommend paying it off as soon as possible to avoid extra fees.
When a delinquent property faces a Texas property tax lawsuit, it is crucial for homeowners to take action immediately. Missing the delinquency date can lead to significant additional costs such as penalties, interest, and legal fees. A property tax lender can offer relief by providing financial assistance to help pay off overdue taxes before further action is taken. Since taxes are subject to strict deadlines and legal repercussions in Texas, securing help early can prevent foreclosure and minimize the financial burden.
Keep in mind that saying, “I did not receive my bill or tax statement,” is not an excuse. You will still be liable to pay your tax as well as any interest or penalties that have been accrued. In order to secure the payment of taxes on January 1, a tax lien is placed on all properties subject to taxes. Until the property taxes are paid, a lien exists in favor of the taxing unit or units responsible for taxation. On January 1, the property tax code places personal liability for the taxes on the owner of the property.
How to Answer a Property Tax Lawsuit
When faced with a property tax lawsuit in Texas, it’s critical to take immediate action to protect your property and financial stability. If you’ve been sued for delinquent property taxes, the first step is to carefully review the lawsuit notice and understand the details of the claim, including the amount owed and any associated penalties. Respond promptly within the legal timeframe to avoid default judgments, which can escalate costs and risks. Explore options like contacting tax lenders who specialize in assisting homeowners behind on property taxes. These lenders often provide flexible repayment plans and do not require perfect credit, making them a practical solution to help you pay your property taxes and avoid foreclosure. Proactive communication with the taxing authority or a legal advisor can also help resolve the issue efficiently while minimizing additional legal and financial burdens.
Partnering with a Property Tax Loan Company
When you fall behind on paying your personal property taxes, you’ll also incur expensive penalties, late fees, and other associated costs. These costs can add up very quickly, and if you’re not careful, you can easily end up in a financial hole that is very difficult to dig your way out of - partner with a trusted property tax loan company that can help you get back on track.
A leading tax loan company like American Finance & Investment Company, Inc. (AFIC) will work with you to create a solution that works for your circumstances and your budget. Property tax collection lawsuits can be expensive, frustrating, and often feel never-ending. And in the end, you may not get the result you want.
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 an easy repayment plan for you. AFIC can provide you with an instant quote quotation within a minute 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 tax foreclosure sales
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.
