How Long Can Property Taxes Go Unpaid
While it’s preferred that our taxes be paid in full every year by the January 31st deadline, sometimes hardship and life events can affect our ability to pay our property taxes on time. Below is an in-depth guide on how long property taxes can go unpaid in Texas before you face foreclosure.
An Overview of Property Tax Deadlines and Penalties
In the state of Texas, property taxes are due on January 31st. If you haven’t paid as of February 1st, you are considered delinquent on your taxes by the county and will face an immediate 7% penalty. Fees and penalties continue to accrue each month, with one of the steepest rates beginning in July. How steep? You’ll see a total 41.6% increase as of July 1st. That’s 18% in penalties and interest as well as 15-20% in attorney fees. Get more details in our penalties and interest chart here.
When Do Foreclosure Proceedings Begin?
In the state of Texas, there is no definitive timeline for when the foreclosure process can begin. Once your taxes are past due and a lien has been placed on your property, the county is within its right to begin foreclosure proceedings at any time.
The timing varies greatly from county to county. You could see foreclosure proceedings after just a few months or it could take a few years. In Texas, the law states that the county is eligible to begin foreclosure proceedings on a delinquent homeowner after the July 1st deadline.
However, a county’s main aim is never to foreclose and sell your home. In most situations, the county is willing to work with you to resolve your delinquent property taxes and avoid foreclosure altogether.
How Do I Know Foreclosure Proceedings Are Imminent?
The county is required by law to notify you that they are pursuing foreclosure. The foreclosure process begins when the holder of your tax lien files a lawsuit against you, as the owner of the property. You’ll then be served with a notice of the foreclosure lawsuit. However, even after you’ve been served with a foreclosure lawsuit, you still have time to stop the foreclosure process and save your home.
Payment Options for Homeowners
If you’ve fallen behind on your taxes and want to avoid foreclosure on your property, here are four ways to stop property tax foreclosure:
Tax Deferment
In some situations, you can defer your property taxes. The state of Texas offers deferments, if they meet the criteria, to those over the age of 65, those with disabilities, and disabled veterans.
Payment Plans
Payment plan options depend on the county. You can reach out to your county and discuss payment plan options to help you pay down your overdue tax bill.
Credit Cards
You can pay your taxes with a credit card. However, with rising interest rates, a credit card should be your last option to pay your delinquent property taxes.
Property Tax Loans
Property tax loans are designed to offer budget-friendly solutions and pay your taxes fast. Some loans, like the ones at Johnson and Starr, aren’t dependent on credit scores.
Johnson and Starr Can Help
At Johnson and Starr, we want to help you stay in your home. Our property tax loans are designed to be budget-friendly and we never check your credit score. Give us a call at 1-800-203-9157 or book your 15-minute loan consultation here.