Not everyone can pay their Texas Property Taxes by the January 31st deadline due to unexpected circumstances that come up. When property taxes are not paid by the deadline, the county starts adding penalties and interest monthly. By the end of the year those penalties can amount close to 47% of what your initial tax bill is. If this has happened to you, you have options. 

Here are some insights from, Ovation Lending.

Property Taxes Paid After January 31st:

If property taxes are paid after January 31st of every year, the county will consider this late and will start adding penalties and interest monthly. The penalties and interest start at 7% and go up 2% monthly. If the taxes are still unpaid by July 1st the county will add a 20% collection fee. The county can also turn delinquent property tax bills over to the collection attorneys who will start the foreclosure process adding additional fees and court costs to the unpaid tax bill. After July the penalties stop accruing but the county still continues to add 1% interest fee until the taxes are paid in full. 

Tax Deferrals

If the property you own is your homestead property, the county has tax deferrals that can be added to your property. Tax deferrals reduce the assessed amount that is taxed which will reduce the tax amount due to the county. The main one is making sure you have a Homestead Exemption on your property. The county also offers deferrals for anyone over the age of 65 or has disabilities. Contact your county appraisal district to get more information. 

Tax office Payment plan: 

The tax office offers payment plan options depending on your situation. Typically, the county will require a down payment of no more than 25% of your tax bill. They usually offer 12-24-month repayment plans. What they typically will not tell you is if you miss a payment you are subject to retroactive penalties and fees. Also, you will have to pay the following tax bill in full before they go delinquent. We suggest that you read the agreement thoroughly before moving forward with a county payment plan. 

Property tax lender

Whether you own a commercial or residential property, you have the option of a property tax loan. A property tax lender, such as Ovation Lending, will pay the property taxes, penalties, fees, & any court costs in full. Ovation offers competitive rates that are typically lower than what the county is charging. We offer terms from 2-10 years to help get you back on your feet. We will work with you to find a solution that best fits your needs. Our licensed loan officers will walk you through the property tax loan process and help with any questions you might have. 

With over 150 years of combined experience, our team has helped every type of property owner in every kind of situation. Our team will fulfill the needs of you and your interest. Don’t hesitate to call us. 

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