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4 Myths About Tax Lien Loans (That You Might Have Heard Before)

Tax Ease has been helping Texans find relief from their property tax debts since 2003. So, you can imagine that we’ve heard some really interesting things over the years. That’s why we wanted to help you decipher what is actually true, and what is just nonsense when it comes to paying back property taxes.

Tax Loan Myth Number One: You Have To Pay For Property Loans In Texas

Not necessarily true, but it’s not completely false either. This all depends on the requirements of the property tax lien financing company that you decide to work with. Some Texas property tax lenders charge for the application process. The bad part about the fee — you’re only paying for the possibility of getting a loan. So, don’t assume that an application fee will guarantee approval. And don’t pay the fee just to get an idea of what you might be paying in the event that you do get the property tax loan from the lender.

For a better idea of prospective loan terms, ask if it’s possible to get a quote over the phone or to have a written “Good Faith Estimate” mailed to you. If a lender is adamant that you pay an application fee, walk away. Trust us, there are plenty of property tax lenders out there that won’t force fees or services on you. And we’re one of them.

Tax Loan Myth Number Two: Anyone Who Provides Tax Lien Loans Can Help You

Your home or business is beyond important to you. When it’s possibly on the line, you’ll need a property loan provider who puts you and your priorities first. You should also work with someone who’s authorized to be a property tax loan provider.

Property tax lending is regulated by the State through the Office of Consumer Credit Commissioner (OCCC). This makes the selection process a little less nervewracking because you can vet lenders through this office. Use the site or give them a call if you need to verify if a lender is licensed. You can also contact the OCCC to see if past customers have filed complaints about a prospective lender, and if so, how those complaints were addressed. You’ll know to avoid the lender altogether if they are not licensed by the OCCC.

Another indicator of legitimacy is if a property tax loan provider has a National Mortgage Licensing System (NMLS) license. Under the organization’s Secure and Fair Enforcement for Mortgage Licensing Act of 2008, or SAFE Act, all residential mortgage loan originators have to be state-licensed or federally registered. They also must be registered with the Nationwide Mortgage Licensing System & Registry. If a lender is in compliance with this, they should be able to provide their NMLS number. If they can’t, you’re better off without their services.

Tax Loan Myth Number Three: Foreclosure Is A Property Tax Loan Lender’s Number One Goal

There have been some grumblings about lenders making foreclosure a priority so they can profit from the process. But according to the Texas Property Tax Lienholders Association, that’s really not advantageous for lenders. All foreclosure sale proceeds outside of the property loan value go to the property owner or the bank/mortgage lender. Lienholders or property tax loan lenders can only get back what they are owed by borrowers. So, there’s really no reason for a lender to push for foreclosure.

Tax Loan Myth Number Four: Payment Plans Are Too Expensive And Unmanageable

The truth is, not paying your property taxes and getting deeper and deeper in delinquency is more expensive. Taxes are due on January 31. On February 1, if you haven’t paid them, your taxes are considered delinquent. After that date, your tax penalty fees can increase by at least 2% each month until June 30. On July 1, you could be hit with a 20% collection fee. If you remain delinquent until the end of the year, you could possibly face up to 48% in penalties, fees and interest in addition to your original property tax amount.

On the other hand, if you work with a loan provider like Tax Ease, you can get a payment plan that will work with your budget. You’ll also get it with one of the lowest rates in the industry. Our goal is to help prevent you from getting buried by this major financial obligation so you can keep your home or business — and still cover the things that matter most in life.

Need Help Paying Back Property Taxes? Tax Ease Can Help

Don’t let tax lien myths stop you from getting the help you need. Tax Ease can offset the burden of penalty fees, additional interest and even the chances of losing your home or business with our property loans for Texas. You can even start the process today by applying online or giving us a call at 1-888-743-7993. Applying for a Tax Ease property tax assistance program is fast and easy, and you can get approved within 24 hours. If you have any questions about our services for delinquent taxes, contact us today.

2022-09-26T02:53:07+00:00 May 15th, 2019|Commercial Property Tax, Residential Property Tax|