The risk of losing one’s home to foreclosure due to non-payment of property taxes is one that no homeowner should take. However, instead of working with local governments to organize payment options, some Dallas homeowners take an even bigger gamble on their home in the form of property tax loans.
These loans involve a process where a property tax lender pays your taxes to your Tax Collector, and the owner then pays the lender back through a payment plan. While most homeowners that go this route are able to pay back the loan, many lenders don’t require credit checks and failure to follow the plan can quickly result in a foreclosure on the property by the lender.
Do You Really Need a Loan?
The short answer is, no. Property owners tend to want to pay back any back taxes as soon as possible. However, if your property tax bill is under $3,000, the interest of some property tax loans isn’t worth the trouble.
This is especially true for homeowners residing on a homestead, are disabled, or over 64-years-old. If you find yourself in a situation where you are having trouble paying your taxes, talk to your Tax collector about a payment plan through them.
Before jumping head-first into a loan, you should first figure out if the loan will actually save you money, or just end up costing you more than if you paid back the Tax Collector.
What Are the Risks of a Property Tax Loan?
When a homeowner is approved for a property tax loan, the lender assumes the lien on a home as collateral for payment. Although the loan is made with the expectation that you will pay it back, some lenders view foreclosure as a success for their business.
While putting your home in the hands of a stranger is risky on its own, there is also the chance of other poor business practices that could lead an owner to financial ruin.
Some poor practices of property tax lenders could include:
- Not servicing loans for customers
- Not offering a compromising late payment policy
- No loan customization for your situation
- No credit check or reporting to credit agencies
- Operating without a license by the OCCC
Avoid Dragging a Lien into Your Home with the Help of a Property Tax Consultant
All of this information may seem like a dead-end for people concerned with paying their property taxes. Fortunately, property tax consultants can help you get through these trying times in life and get your property tax payments back on track.
How can a property tax consultant help you? Not only can they walk you through the process of understanding your property tax payments, but they can also help you start to coordinate a plan for the next property tax season.
Property tax consultants are also apt at ensuring that you are not overpaying on your tax bills. We can help you file an appeal if some of the numbers seem incorrect.
Get The Tax Consultation You Need From The Hegwood Group
Don’t risk losing your home over late property tax payments or high-risk lenders. Let the professional property tax consultants at The Hegwood Group help. We are a full-service firm that specializes in property tax reduction and recovery. Contact us to get yourself on the path towards peace of mind.