Texas Property owner’s that delay finding a solution to pay their property taxes face stiff penalties and the possibility of a law suit by the tax assessor to foreclose their home. Detailed below is a generalized overview of issues property owner face when they fail to pay their property taxes:
1) Penalties and Interest – In most Texas counties property taxes are due on January 31th. Failure to secure help with your Texas property taxes before the due date results in a penalty equal to 7% of the tax bill. Each month thereafter, a 2% per monthly interest charge is added to the property tax account. If property taxes remain unpaid after June 30th another 20% collection charge is added to the account. After June 30th most counties continue to assess a 1% per month interest charge. If an immediate solution is not found, the total of all interest, penalties and collection charges can total an annualized rate as high as 44%. These penalties and charges reflect those of the typical Texas Taxing Authority.
2) Law Suits and Litigation – Tax Assessors can file a law suit to collect past due property taxes as soon as they become delinquent on January 30th. As a practical matter, most Tax Collectors want the revenue from interest and penalties and historically it has not been uncommon for them to wait years after property taxes are due to file a law suit. However, given that most counties are struggling with their budgets, the trend now is for the tax assessor to file within 7 – 12 months of the delinquency.
Once a law suit is filed, property owners are served with a legal complaint and a court hearing is set. At the hearing the property owner has the opportunity to provide evidence that the property tax due amount is incorrect or law suit is not valid. If it is determined by the judge that the property taxes are delinquent, a judgment is entered in favor of the county. The county can then file a writ of execution on the judgment to foreclose the property to sell it for the past due property taxes.
Failure to pay your property taxes is a serious matter and can result in costly penalties and the eventual loss on the property through a foreclosure sale. Texas Property Tax loans are a fast and economically viable solution for most property owners that fall behind and need help with their property taxes.