What Is a Lien on a House?
A property lien is a legal notice attached to a piece of real property, such as a home, by a creditor when the property owner owes them money. A lien is public record and will be filed with a government agency, such as the county recorder. The lien gives the creditor/lien holder the option to foreclose on your home if the debt is not repaid within a reasonable amount of time.
What Happens When a Lien is Placed on Your Home?
When a creditor puts a lien on a house, that property becomes collateral for the debt. When there is a lien against your property, the title is unclear and you can not refinance or sell your property. The only way to clear up the title is to get the lien removed, so creditors know that putting a lien on property is an easy and effective way of getting the money they’re owed.
Who Can Put a Lien on Your House in Texas?
There are several different types of liens which can be placed on your home, depending on who the creditor is. A property tax lien will be placed on your home by the county tax collector so they can foreclose on your home if necessary to pay delinquent property taxes.
How to Get a Lien Off Your House
In most cases, the only way to remove a lien and stop the accruing penalties and interest charges from late property taxes is to pay the bill in full.
So, when do property taxes become a lien in Texas? On January 1 of each year, a lien is placed against every piece of real property in Texas as a formality. As long as you pay your property taxes by January 31, no further action will be taken and the lien will be released. However, if you do not pay your property taxes by the due date, further action will take place and the lien will remain on your home.
The good news is most counties will give you time beyond February 1 to pay your unpaid property taxes before they begin foreclosure proceedings. Most counties will give you anywhere from 60 days up to more than 120 days to catch up on your back taxes and remove the lien against your property.
If you need assistance making that payment, Tax Ease is here to help with property tax loans. Whether you need a commercial property tax loan or a residential property tax loan, we can help you pay off your unpaid property taxes and remove the lien on your home without a credit check. Plus, Tax Ease will work with you so you can choose a flexible repayment option that will work for your budget. Our interest and penalty chart will help you estimate what your total cost will be so you’re not left guessing.