Behind on Property Taxes? Here’s How to Stop Property Tax Foreclosure
Taxes present a significant burden on families, especially with inflation and rising costs across the Country. That burden can become overwhelming when you’ve fallen behind and face a real possibility of property tax foreclosure. Thankfully, there are a multitude of ways to stop property tax foreclosure and keep your home with your family, where it belongs.
It’s important to act on delinquent notices as early as possible. The longer taxes remain unpaid, the more penalties, interest, and legal fees can build up over time. Understanding how penalties and interest accumulate on delinquent property taxes in Texas can help homeowners avoid an even larger financial burden. Read on to learn more about avoiding foreclosure.
What happens if you miss the deadline?
Missing the original deadline of February 1st incurs a penalty of 7% and you accrue additional fees and penalties each month that your taxes go unpaid. The longer you wait to pay your delinquent taxes, the more serious the problem becomes.
What Is Property Tax Foreclosure?
When property taxes go unpaid in Texas, the county places a tax lien against the property. If the balance continues to go unpaid, the taxing authority may begin foreclosure proceedings to recover the debt.
In addition to the original tax amount, homeowners may also owe:
• Penalties
• Interest
• Attorney fees
• Court costs
These added expenses can cause the total balance to grow quickly, making it harder to catch up over time. For homeowners unfamiliar with the process, learning more about delinquent property taxes in Texas can provide a better understanding of what to expect.
Signs You May Be at Risk of Foreclosure
You may be at risk of property tax foreclosure if you have:
• Missed one or more property tax payments
• Received certified mail from a tax office or attorney
• Been served foreclosure paperwork
• Received a Notice of Tax Sale
• Seen penalties and interest rapidly increase
It is important not to ignore these notices. In many cases, homeowners still have time to resolve the issue before a foreclosure sale occurs.
Paying the Delinquent Taxes
Paying the full amount owed is typically the fastest way to stop foreclosure proceedings. This usually includes the delinquent taxes along with penalties, interest, and legal costs.
However, many homeowners may not have the ability to pay the balance in full at once.
Ask About County Payment Plans
Some Texas counties may offer installment agreements or hardship payment plans for qualifying homeowners. These programs can help property owners gradually catch up on unpaid taxes.
Availability and qualifications vary by county, so it is important to contact your local tax office directly for details.
Consider a Property Tax Loan
For homeowners needing immediate help, a property tax loan may provide another option.
A property tax lender pays the delinquent taxes directly to the county, which can stop foreclosure proceedings and prevent additional penalties from continuing to accumulate. The homeowner then repays the loan through scheduled monthly payments.
At Johnson & Starr, homeowners can expect:
• No application fee
• No credit check
• No money due at closing
• Flexible repayment options
• Fast approvals for qualified borrowers
Taking the Next Step
Facing property tax foreclosure can be stressful, but homeowners have options available. If you have fallen behind on property taxes, exploring your options now may help you protect your property. Johnson & Starr is here to guide you through your options and help you get back on track.