Do Nothing.
Of course, you may choose to not pay your delinquent property taxes at all. However, the consequences can be quite costly. Your taxes will incur penalties, interest, and collection fees of up to 43 percent in the first year. The Tax Collector may also sue you for collection of back taxes. Court costs and legal fees will be added to your bill, and ultimately, the Collector may foreclose upon your property. It will then be auctioned, to the highest bidder, with the proceeds going to pay your past due taxes.
Set Up an Escrow Agreement.
If you have a mortgage on your property, the mortgage holder may offer to pay off the current year’s taxes by setting up an escrow agreement. In some cases, your mortgage company may pay the taxes without your permission, and you will involuntarily be put into an escrow agreement. This can increase your monthly mortgage by a considerable amount and risk your ability to make your house payment.
Pay in Full.
You can always pay your delinquent taxes in one lump sum. Paying by check, money order, cashier’s check or credit cards typically are acceptable options. If you choose to pay with a credit card, you likely will be charged a convenience fee of 2-4 percent beyond the tax bill. Additionally, you must now pay your credit card holder interest to pay off the tax balance, which may be higher than that of another lender.
Split Payments.
Many counties offer a “Half Payment” option. You are required to pay at least 50 percent of your property tax bill by November 30 of the preceding tax year, and the balance by June 30 of the subsequent tax year. Unfortunately, by the time most property owners find out about this option, the deadline for the first payment has passed.
Collection Payment Plan.
The Collection Agent for the Tax Collector may be authorized to offer you a payment plan. Payment plans from the collection agent are generally inflexible. Typically, you must pay one-third of the tax balance at the beginning of the plan with the balance made in equal payments over the next 6-12 months. Payment plans do not waive future penalties and interest, and these loans are not available until your account has been referred to the collection agent. By that time, your account may already have accrued 38 percent in penalties, interest and collection fees.
Property Tax Loan.
Texas is the only state that allows you to use a third party to finance your delinquent property taxes. A property tax loan is a flexible and convenient alternative to other financing options. The property serves as collateral for the loan agreement.
DO NOTHING Your taxes could incur penalties, interest, and collection fees of up to 43% in the first year, and ultimately, the Collector may foreclose upon your property.
SET UP AN ESCROW ACCOUNT Your mortgage holder may pay off the current year’s taxes by setting up an escrow agreement—with or without your permission.
PAY IN FULL You can always pay your delinquent taxes in one lump sum.
SPLIT PAYMENTS You might have the option to pay 50% by November 30th and the balance by June 30th.
COLLECTION PAYMENT PLAN The Collection Agent may be authorized to offer you a payment plan, but may not waive future penalties and interest.
PROPERTY TAX LOAN A property tax loan can halt legal action and save your house from foreclosure, while giving you a low monthly payment you can handle.
