If you get a property tax loan for your residential property, you avoid accruing interest, penalties, and other legal fees on your delinquent property taxes. Everyone living in Texas understands the stress unpaid property taxes can trigger. This is why many companies provide property tax loans to help homeowners solve their tax issues fast. The property tax loan providers pay off the delinquent property taxes and provide you with a flexible monthly payment plan.
But before explaining how Texas property tax loans function, let’s understand why delinquent property tax bills increase.
If your property tax bill remains unpaid after February 1st, it’s assessed a 7% penalty and interest fee. The penalties grow every month until you pay the bill. Supposing you have a $10,000 bill, it can grow into $14,760 by December. The penalties are up to 48% in the first year, and it’s best to find a way to pay before the tax assessor adds interest fees and penalties.
A company that offers Texas property tax loans can help you pay off the taxes when you’re experiencing cash flow issues. But before you apply for one, you should know a couple of things.
Some tax companies are reliable while others are not
Sadly, some unethical companies prey on homeowners in desperate situations, even in the tax loan industry. Research the market to ensure that you work with a trustworthy provider. Compare multiple businesses from Texas, and pick one that is well-established and with a good reputation. Looking at the reviews and testimonials can help you determine if the business is ethical. The ranking from the Better Business Bureau is another indicator that can help you choose.
It’s recommended to look for a competitive offer
Approach taking a property tax loan similar to doing business. Look for a company that deserves and wants to help you and provides you with a competitive offer. Some companies even include incentives like no payments in the first two months or interest-only payments for a determined period. A good tax loan provider personalizes the payment plan and ensures it’s flexible enough to match your finances and lifestyle. Most organizations offering property tax loans also offer commercial property tax loans if you fail to pay the taxes for your corporate headquarters.
The sooner you get the property tax loan the better
As you already read, delinquent property taxes in Texas mount quickly, and the penalties and interest applied to the original bill can make it quite expensive to pay it. The situation can quickly spiral out of control and make it even more challenging to manage it. The only way to prevent owning the county thousands of dollars is to pay the bill before February 1st. The property tax loan includes interest for the loan provider, but it’s smaller in comparison to the fees and penalties you need to pay if you fail to cover the bill in time. The loan pays the property tax in full, and the provider structures the payments monthly to make it manageable for you and allow you to get back on your feet.
If you want to find more about what getting a property tax loan implies, you should check online because there is plenty of information.