Property Tax Loans - Frequently Asked Questions

Business is booming in Texas for property tax lenders who continue to see an influx of borrowers. These lenders offer a solution for property owners who seek an alternative to the high cost penalties and interest charged by the tax assessors for delinquency of property taxes. Property tax loans offer owners the ability to avoid the lump sum payment in exchange for a monthly payment schedule that fits their budget
With the economic crisis worsening, property tax lenders expect a record number of borrowers in the months ahead. If you are interested in a solution for your delinquent property taxes, these frequently asked questions may assist your search.

LOAN PROGRAMS

What type of property will qualify for a property tax loan? Loans are available for almost any type of real estate as long as the borrower is not in bankruptcy and the property is reasonably maintained. This includes residential, commercial, investment properties and vacant land.

Can the loan help with past due taxes, interest and penalty fees as well? Yes, if you meet the requirements, a property tax loan can instantly pay your current and past due taxes including accrued interest, penalties and legal fees.

I have several properties. Can you make a loan for multiple properties? The lender will need to make a separate loan for each property, but generally all loans can closed on the same day.

Do you make loans on personal property or for federal income taxes? No, property tax lenders only make loans for residential or commercial properties in the state of Texas.

Can I get extra cash out beyond what is owed for my property taxes? No, by law property tax lenders are restricted to granting loans only for the tax amount, penalties, interest and closing costs, including legal fees.

APPLICATION PROCESS

How do I apply for a property tax loan? Lenders take applications online or over the phone. You can apply with Property Tax Funding by calling a loan counselor at 1-877-776-7391. You may also submit a pre-application on our website at http://www.propertytaxfunding.com/applynow.html A loan counselor will call you to complete the application at your convenience.

What if I've had past credit problems? Credit history is typically not an issue, except in cases of current bankruptcy. Loans are approved for most applicants, even those with not so perfect credit. All loans are subject to income verification.

What materials are required for an application? When applying for a loan on residential property, you will need to complete the loan application form. The application will require your social security and driver's license number, along with mortgage, insurance, and bank information. Commercial applicants should have the above information available. The lender may also require Articles of Incorporation, Partnership Agreements, and current financials.

LOAN TERMS

What are the terms of a property tax loan? Loan terms vary by lender. Typical terms available are 5, 7, and 10 year terms. This allows the borrower the flexibility and a payment they can afford.

What is the interest rate on a property tax loan? Interest rates vary. Contact your preferred lender to learn their rates.

LOAN REPAYMENT

How will I make my monthly payments? Borrowers repay loans through an ACH agreement authorizing direct debit of their bank account or by mailing in a monthly payment. Payments are typically due on the first or fifteenth of each month. Will my property be foreclosed upon if I am late or miss a payment? Foreclosure can be initiated when a loan is delinquent. Property tax lenders will make every attempt to work out an agreeable payment plan and in some cases restructure your loan to accommodate your needs. If default continues, a court approved foreclosure can occur to collect the outstanding debt.

Can I pay my loan off early? Yes you can pay your loan off at any time. Most lenders do not charge an early payment penalty on residential loans.