It’s no surprise that even though we are familiar with property tax loans, there are many questions that are  left unanswered.  Many people contemplate a property tax loan as a last resort if they struggle to pay their property taxes. This blog has answered some of the most common questions we receive regarding property tax loans. 

How much can a taxing authority charge if I am delinquent on my property taxes?

If your property taxes become delinquent on February 1, you are subject to an additional 7% in penalties. An extra 1% is added each month until your taxes are paid.

In addition to the interest, if your taxes are still delinquent on July 1, an additional 20% collection fee is added to your tax bill. If your taxes remain unpaid until December, the other interest, penalties, and fees reach 44% and will keep growing until those taxes are paid. Of course, now a second year’s worth of taxes becomes delinquent, and penalties on those new taxes begin.

Can my taxing authority foreclose on my property if my property taxes are delinquent?


The taxing authority can file a delinquent suit against you and could seize your property. The longer you wait to resolve your unpaid property taxes, the greater the chance you will be sued.

If I choose Ovation, am I getting a “loan”?

The term “property tax loan” is perplexing. A consumer loan is when you choose to borrow money to pay for something you want or need. Nobody wants to pay taxes!

When Ovation ‘lends’ money to pay your taxes, you are not creating new debt. You are merely transferring your tax debt from the county to Ovation because we allow you to pay that tax debt in convenient, monthly payments. You also escape the enormous fees and penalties taxing authorities force you to pay when you can’t pay your property taxes.

Is a new lien being placed on my property?


The taxing authority has already placed a lien on the property. It automatically happens on January 1 every year. If you allow Ovation to pay your taxes, this tax lien is transferred to us.

Can you foreclose on my property if I miss a payment?

We provide easy, affordable payment plans for homeowners who cannot pay their property taxes according to the taxing authority’s schedule. We get the charges off your back. We also work very hard to find a payment plan that fits your budget and financial situation. We cannot foreclose if you miss a payment!

However, if you stop paying and fall significantly behind, we have the right to pursue a foreclosure, just like the taxing authority can. If we are forced to begin that process, you would receive many notices and be given ample opportunity to rescue your tax loan to avoid foreclosure. We never want to take your property.

If both the county and Ovation can foreclose on my property, why should I get a property tax loan with Ovation?

Ovation provides you more time and flexibility to pay your property taxes while avoiding foreclosure. We can provide a manageable plan that allows you to pay your taxes over ten years, if necessary. Ovation works with you to find a solution if you fall behind on your monthly payments. Our goal is to retain your property safe and secure in your own hands.

Can I change my mind after closing?

Texas law requires a three day grace period for all of our property tax loans. This serves as a “cooling off” period if you change your mind and want to cancel the loan.

I own several properties with delinquent taxes. Can you help me?


Ovation frequently helps owners of multiple properties. We can create different plans and schedule closings for all of your properties at the same time.

I have a mortgage on my property. Do I still qualify for a property tax payment plan?


Many of our borrowers have existing loans on their properties

Are there other ways I can lower my property tax bill?

Several types of “exemptions” are written into Texas law that allows many people to lower their property tax burden. The most commonly used exemption is for your primary residence – your homestead. We can review your property tax record and assist you in determining whether you qualify for any of these exemptions. 

Second, the county changes the appraised value of your property every year. We can help you learn how to navigate the ‘challenge’ provision so that the county does not over-value (and over-tax) your property.

With over 150 years of combined experience to serve you. At Ovation Lending we are the property tax experts. Call us at (877) 419-7392 to speak to one of our Licensed Loan Officers who will walk you thru the process and find a solution that is best for you.