Why Is A Property Tax Loan Good?
Property Tax Lending in Texas
A Texas property tax loan:
- pays a property owner’s complete property tax obligation, including any associated interest, penalties, costs, and fees;
- is funded by a third party lender (a family member, a friend, or a
business), which is referred to as the Tax Lien Transferee;
- does not create a new lien, but merely transfers the taxing unit’s lien to the
Transferee, pursuant to the Tax Code;
- is made only with consent of the property owner, unlike tax lien sales in
Win for Property Owner
- Helps homeowners protect their most valuable and most important asset:
- Eliminates foreclosure worries and stops the collection process.
- Creates time to overcome the financial problems that caused nonpayment
of their property taxes (job loss, divorce, health problems, etc)
- More manageable and flexible payment terms than taxing units can offer.
- For commercial properties, the owner can use capital to strengthen their
business instead of making a lump sum property tax payment.
- Puts the property owner is back in control of what happens to their
property – sell, refinance or stay.
Win for Taxing Unit
- Produces immediate 100% revenue collection
- Improves collection rates, which reduces the burden on those taxpayers
that do pay their taxes on time
- Eliminates combative collection relationship with property owner
- Eliminates hassle and expense of collection, foreclosure and bankruptcies
- Keeps home owners in their homes; helps preserve neighborhoods
Win for Mortgage Company and Mortgage Servicer
- Avoids creating an escrow account for the property owner
- Avoids restructuring loan held in a pool or securitization
- Dramatically reduces the possibility of foreclosure
- May reduce total encumbrance on the property, as compared with
statutory penalty and interest that otherwise accrue.
823 Congress Avenue,
Austin, TX 78701
Phone: (512) 479-0425
Fax: (512) 495-9031
Monday through Friday
8:00 a.m. – 5:00 p.m.