Do Property Tax Liens Show Up on Credit Reports in Texas?

Most property owners in Texas can agree that not paying property taxes on time can lead to a whole host of problems. One of these problems includes a property tax lien, which is automatically attached to a property when the owner fails to pay their delinquent property taxes on time. If this sounds like you, keep reading to learn if property tax liens show up on credit reports and how a Johnson & Starr property tax loan could help.

What is a Property Tax Lien?

A property tax lien is a claim attached to a piece of real property by a taxing unit or creditor when money is owed to them by the homeowner. For instance, if you don’t pay your Texas property taxes on time and become delinquent, a lien attaches to your property and grants the taxing authority the right to file a legal claim on your property for the amount owed to them. The property tax lien protects the lender or taxing authority from any potential non-repayment risks, meaning the lien will stay on the property’s title until it is fully paid off.

Unfortunately, tax liens are public record and if you currently have one on your property, this can make it difficult to sell and qualify for any loans. Creditors can see the loan and make decisions from there.

Will a Property Tax Lien Affect My Credit Score in Texas?

At one point in time, property tax liens would show up on credit reports and have a significant impact on your credit score. This would prevent the approval of everything from credit cards to jobs and housing, and even several types of loans. On top of that, it would remain on your credit report for up to 7 years if you paid them off and up to 10 years if you did not pay them off.

Luckily, a property tax lien is no longer able to affect your credit ever since the three major credit bureaus started excluding unpaid tax debt, tax liens and court judgments from credit score reports in 2017. Due to inconsistencies in reporting liens to credit reports or to the wrong people, the bureaus agreed to eliminate civil judgement records and some of the tax lien data on credit reports. Eventually in 2018, the bureaus removed all tax lien information from credit reports.

While it is good news that property tax liens no longer affect your credit score, it’s important to take the situation seriously and pay off your property tax debt quickly to avoid the possibility of foreclosure. You can learn more about the Tax Lien Foreclosure Process in Texas, here.

Need Help Paying Your Property Taxes?

If you are a Texas homeowner and receive a lien due to falling behind on your property taxes, know that there are options. At Johnson & Starr we’ve helped hundreds of Texans save their homes with our property tax loans. Our property tax loans are customized to fit your unique situation and can be flexible to adapt to nearly any loan requirement and our application process can often be completed the same day so you can have peace of mind starting tonight. To find out how we can help save your home, call us today at 888-508-3894.