Why it’s Important to Settle Your Delinquent Texas Property Taxes Before July 1st
It’s that time of year again for Texans. The weather is getting warmer, and summer is around the corner. But temperatures aren’t the only thing increasing during this time of the year. If you’re like many Texas homeowners who have fallen delinquent on your property taxes, it can be overwhelming to see the increasing interest, fees, and penalties on your unpaid tax bill. Luckily, there is still time to resolve your delinquent property taxes before the biggest penalty of the year hits. Keep reading to learn why it’s important to settle your delinquent Texas property taxes before July 1st and how we can help.
How Much in Charges Have I Already Accumulated?
In Texas, you are considered delinquent if your property tax bill remains unpaid by February 1st of the tax year. Once delinquent, you are subject to a 7% penalty, and from there, interest and penalties continue, with one of the largest penalties coming in July for most counties. For each month that you remain past due, your rate will increase by another 2%. By the end of June, you could be looking at charges of approximately 15% added to your total property tax bill. If you’re looking for a more precise breakdown of the penalties and interest fees, check out this Texas Property Penalty and Interest Chart that provides a monthly breakdown.
What Happens If I Don’t Pay My Property Tax Bill on July 1st?
As of July 1st, the penalties for your delinquent property tax nearly doubles. If left unpaid, you could be faced with a whopping 15-20% property tax collection penalty to cover the legal expenses, attorney fees, and court costs at the full balance owed. That penalty is placed on top of everything else, which means that by July, your delinquent property tax bill can accumulate up to 41.6% in cumulative interest, penalties, and fees. These penalties can easily add up, which is why it’s important to settle your property tax bill before you get to this point or even worse, foreclosure.
When Am I at Risk of Foreclosure?
If left unpaid by July 1st, you are not only getting hit with the biggest penalty of the year, but you also risk being sued by the county and losing your property to tax foreclosure sale. Foreclosure can begin any time after July 1 and the process normally takes several months, at which point the property will be auctioned off. The good news is, Texas law also states that if you pay off your total amount of overdue taxes at any time, it releases the tax lien and stops the foreclosure process.
What is the Fastest Way to Solve Delinquent Property Tax Before July 1st?
Between rapidly increasing penalties and the risk of foreclosure, it’s critical to get your Texas property taxes paid off as soon as possible. Depending on your situation, a property tax loan may be the best option. At Johnson & Starr we will pay off your bill in full and create a repayment plan based on your priorities. Learn more about our Texas Property Tax Loans – give us a call today at 888-518-1226.