4 Myths about Texas Property Tax Loans

Texas property tax loans are often misunderstood. As a trusted property tax lender, Johnson & Starr aims to provide you with the right knowledge to help you determine what is true and what is not. In this blog, we’ll debunk the four most common misconceptions about property tax loans and give you a better understanding of how we help Texans who need assistance.

Myth 1: A Property Tax Loan for Delinquent Taxes Can Be Risky

Delinquent property taxes pose significant challenges, so it’s no shock that a property tax loan might seem to be inherently risky. However, it is often the opposite. Waiting to pay your delinquent property tax bill can incur much greater risks, including costly penalties and fees that quickly accrue over time and increase the possibility of foreclosure by the taxing entity.

To prevent this, you can receive help from a property tax lender. Lenders assist homeowners by paying off their property tax bill at once, preventing penalties, interest, and costly fees from accruing and eliminating the threat of foreclosure. Property tax loans give you peace of mind and effectively address your financial challenges.

While it is possible for a lender to foreclose on your property if you do not repay the loan, most lenders are willing to work with delinquent taxpayers to prevent foreclosure while counties or other taxing units may not have flexibility under the law to help.

For more information on how to know if a property tax loan company is legitimate, read our blog Regulations for Property Tax Lenders and Why This Matters to You.

Myth 2: Tax Loan Applications are Time-Consuming and Pricey

Every property tax lender has its unique application process for loans, but Johnson & Starr tax loans are simple, and the paperwork can usually be completed in the same day. In addition, there are no up-front costs when getting a Johnson & Starr property tax loan. Our process also includes no application fees, no credit checks, no home inspections, and, in most cases, no missed time from work. We come to you for the closing. While the interest rate is typically higher than a mortgage, it is often substantially less than running a credit card balance. If you have questions or concerns about the process or pricing, contact one of our expert loan officers for more information by calling us at 877-301-3032.

Myth 3: Property Tax Lenders Want to Foreclose on the Property

There is a common misconception that property tax lenders are eager to foreclose on properties. The truth is, lenders receive no benefit from foreclosure beyond recovering the amount owed. According to the Texas Property Tax Lienholders Association, the foreclosure rate by Property Tax Lenders is less than 0.5%. This low rate can be attributed to the fact that any proceeds from a foreclosure sale, outside the outstanding property loan value, are directed back to the property owner or to their bank or mortgage lender. Thus, the lienholder only receives the amount they are owed during a foreclosure sale, with no additional benefit. The primary objective of most property tax lenders is to avoid a foreclosure process.

Myth 4: Payment Plans Are Too Expensive and Unmanageable

Having an affordable payment plan with a property tax lender is often the best option! At Johnson & Starr, we want to work with you to get your delinquent taxes under control and paid off. If you work with Johnson & Starr, you’ll get a repayment plan that works for your unique situation and budget. Because tax lenders can make loans with far longer repayments periods than county payment plans, the monthly payment is normally substantially less. However, it is important to note that depending on how much you owe in property taxes, your tax office could possibly offer better terms. So, be sure to contact your local tax assessor to find out the best option for your situation.

We also understand that life happens. So, after you start monthly payments, we offer our clients the ability to skip some payments with no extra fees, penalties, or hassle from us (other than the normal interest that continues). Our commitment is to alleviate the burden of delinquent property taxes as much as possible. A payment plan from a lender is normally more affordable than letting your delinquent property taxes accrue interest and fees with the County. Check out our Texas Property Tax Penalty and Interest Chart to discover the potential savings of a property tax loan compared to the enduring costs of delinquency. Let us guide you toward financial security and contact us today!