Texas is known for its high property tax rates leaving property owners to face high tax burdens every year. If property owners are not able to keep up with their property taxes, they face a property tax foreclosure. In this blog, we will explain what a property tax foreclosure is and how a property tax loan is a good option to avoid it.
What is a Property Tax Foreclosure?
Property Tax Foreclosure is a legal method through which a taxing entity can take a property to settle unpaid property taxes. If property taxes are delinquent on a property that taxing entity will turn that delinquent account over to the county collection attorneys who can place a tax suit on the property. This is the start of the foreclosure process. This also adds huge additional fees to the unpaid property tax bill. The collection attorneys will allow a property owner some time to pay the delinquent taxes & fees in full but that time is up to the collection attorneys – every county is different and some will foreclose faster than others. The thought of your home from being taken away is scary, but it is a reality that many Texans face.
Ways to avoid a Property Tax Foreclosure
Budget Accordingly
Every April the Appraisal District will mail out the properties assessed value details. This form will also give detail on the estimated taxes due based on the assessed value. Based on this amount you can start a monthly budget so that you will have enough saved to pay the property taxes in full before they go delinquent.
Escrow the Property Taxes
If you have a mortgage on the property you have the option to escrow your property taxes. This means that part of your monthly mortgage payment will be put aside to pay your property taxes. Most lenders do this automatically. If your lender does not currently have your property taxes escrowed, contact them to discuss your options.
Get a property tax loan
We understand that not everyone has the extra income to set aside for their property taxes. We also know that not everyone has a mortgage on their property. A lot of our clients have inherited a property with large amounts of back taxes due. These are the reasons that we are here to help. A property tax loan with Ovation Lending will help you avoid a property tax foreclosure all while setting you up on a repayment plan that might better fit your needs that what the county can offer. In most cases we will help you avoid huge penalties and fees that come with a property tax suit. Ovation’s Licensed Loan Officers will explain the property tax loan process and work with you to find a plan that best fits your situation. Apply Here or call 877-419-7392 today to find out what options you have!