How Do Property Tax Loans Work?
Even with recent tax cuts and increases in the homestead exemption, property taxes continue to cause many Texas residents financial difficulty. With costs continuing to rise in every industry, it’s easy to fall behind on your property taxes and suddenly be faced with the looming risk of foreclosure. How do you avoid foreclosure when you simply don’t have the money to pay your delinquent property taxes? A common way to avoid foreclosure from delinquent property taxes is through a property tax loan. Read on for an in-depth look on how property tax loans work to discover if it’s the right fit for you and your family.
What Is a Property Tax Loan?
A property tax loan is a type of loan specifically designed to pay off delinquent property taxes for homeowners to avoid foreclosure proceedings. These loans, like the ones at Johnson & Starr, typically don’t involve credit checks so you are likely eligible for a property tax loan even if you are ineligible for other types of financial products like personal loans or credit cards.
How Do Property Tax Loans Work?
If you are delinquent on your property taxes and meet a minimum threshold (this varies based on the lender you choose), you would start by filling out an application with a property tax loan company. To see an overview of Johnson & Starr’s process, head here. Every company’s application process is different, but most are simple and fast, designed to get you the funds you need as quickly as possible. Property tax loans typically don’t do credit checks either, but rather are based on your income and the value of your home.
Once you’ve filled out an application and received approval, the property tax loan company will pay off your delinquent property taxes directly at your local county tax office. You’ll then pay your property tax loan monthly like you would any other bill according to the terms and conditions of your agreement.
What Are the Benefits of Using a Property Tax Loan
The biggest benefit of utilizing a property tax loan to pay off your delinquent tax bill is that you avoid foreclosure and remain in your home. Even if your home stands to be auctioned off in the near future, a property tax loan can still save your home if you apply quickly. Property tax loans like the ones at Johnson & Starr, includes flexible repayment terms that make the loan affordable and offers low interest rates in comparison to tax penalties, which can add up to thousands each year. Property tax loans also typically offer faster approvals than traditional loans, getting you financial freedom that much quicker.
Do I Qualify for a Property Tax Loan?
While the eligibility requirements vary from lender to lender, typically the following requirements exist:
- Your penalties and taxes must exceed a certain amount to make it worth offering a loan. This amount varies but is typically between $2,000-$5,000.
- Your property must be in the state of Texas.
- You must be under the age of 65.
- The person on the title must be the same person to sign the loan documents.
Johnson & Starr Has Property Tax Loans for Most Qualifying Situations
If you are facing foreclosure for delinquent property taxes, calling Johnson & Starr could offer you the peace of mind you’ve been looking for. Our loan application is quick and our loan officers can help you find an affordable repayment plan that fits your budget. Contact us today.