texas tax lien foreclosure

What to Know About Tax Lien Foreclosure in Texas

A tax lien foreclosure, which uses the judicial foreclosure process, can happen when a homeowner does not pay their delinquent property taxes. In order to recover the debt, the local government can file a legal claim against the homeowner and has the right to seize and sell their home. 

Texas is known for having some of the highest property taxes in the country, so it is quite common for homeowners to fall behind on their property tax payments. If you own a home in Texas and find yourself in this situation, it’s important to understand what happens during a tax lien foreclosure and what you can do to stop the process from happening.  

The Tax Lien Foreclosure Process in Texas 

In Texas, the foreclosure process begins as soon as you become delinquent on your property tax payments. Taxes are due on January 31—so, they’re considered delinquent if they haven’t been paid or postmarked by February 1. Once you are delinquent, a few things will happen. 

First, you are hit with penalties, interest, and fees for every month that you do not pay your property taxes. In Texas, your property tax bill could increase by as much as 47% in just one year and will continue to increase for each month the property tax remains unpaid. 

Secondly, failure to pay your delinquent property tax allows the state to place a lien on your home, which prevents your property from being sold or transferred until the outstanding taxes are paid. While a number of notices must be sent under Texas law, a final 21-day Notice of Sale must be provided to the property owner before the tax lien foreclosure sale. You can stop the foreclosure process prior to the sale by paying the full amount due under the Notice of Sale and any additional interest, late fees, and penalties due at that time.  

If you don’t make the payments, the state of Texas has the right to seize your property and sell it to pay off your tax debt. Foreclosure auctions take place on the first Tuesday of every month at the county courthouse where the property is located. Once your property goes to auction and is bought by someone else, it can become difficult and expensive to get it back. Fortunately, there are ways to stop the foreclosure process before it becomes too late. 

What Can I Do to Stop the Foreclosure Process? 

If you are unable to pay your delinquent taxes, a simple solution would be to work with a lender that specializes in property taxes to pay off the debt in full. The right property tax lender will help you come up with a repayment plan that fits your needs. The benefits of working with a property tax lender include: 

  • It may save you money by stopping the penalties, fees, and interests from accruing on your unpaid taxes. 
  • It will give you peace of mind knowing your home is safe from foreclosure. 

At Johnson & Starr we can help. Our simple payment plans are customized to fit your unique situation and can be flexible to adapt to nearly any loan requirement. Our loan application process can often be completed in one day. Getting a property tax loan with us means: 

  • No application fees. 
  • No credit checks. 
  • No home inspection. 
  • No missed time from work—we come to you for the closing. 
  • No money due at closing. 

Don’t lose sleep over delinquent property taxes. Our team is backed by professionals who have years of experience working with Texas tax property loans. Find out how we can help save your home – give us a call today at 800-203-9157.