FAQ’s

Although “property tax loan” is the phrase commonly used, it is technically a tax lien transfer. You are not incurring additional debt – you already owe the taxes. You are merely authorizing the transfer of the existing tax lien from the government to TexTax. At your instruction, we pay your property taxes directly to the taxing authorities. You, in turn, agree to repay us under a repayment plan. The taxing authorities have a lien against your property, and they transfer that lien to TexTax when we pay your taxes. The tax lien is our security for payment and is released after you have paid off your loan to us.

Just a few days. From the time you first contact us to the time your taxes are paid is generally less than two weeks. Our loan process is simple and paperwork is kept to a minimum.

With TexTax, there is no application fee and there are no upfront costs. You start paying with your first monthly payment. Our fees are included in your loan. You choose your monthly payment by deciding how long you want to take to pay back the loan. For a comparison of our monthly payments to the fees and interest charged by the county, try our Loan Calculator.

Our interest rates for loans on business properties are extremely competitive. We will need to talk to you to quote you the current rate, and the rate will depend on which plan you select, but our fees and interest will typically save you up to 60% over what the county taxing authorities will charge in penalties, interest, and fees for the year.

Options available: 1 year, 5 years, 10 years, 15 years

TexTax has a variety of repayment terms available, ranging from one to fifteen years. You can select the plan you prefer and that fits your needs the best. Our property tax loan advisors will go over the options with you.

You can apply online right now with no application fee or obligation. Apply Online You can also apply by telephone – call 972-588-4224 and speak to any advisor.

Our due diligence document requirements from you are minimal. No tax returns or financial statements are necessary. No credit report is pulled and no credit checks are made. If the owner of the property is an entity, we will need to verify that the company exists in good standing, that the property tax loan has been properly authorized and that the person signing the documents is authorized to do so. For a corporation, this would be a Secretary’s Certificate certifying board resolutions and attesting to the incumbency of the signing officer. For an LLC, this would be a copy of the LLC operating agreement and a certificate signed by the managers or the members. For a limited partnership or general partnership, this would be a copy of the partnership agreement and an incumbency certificate. For an estate, we would need copies of letters testamentary. If the entity is not a Texas company, we will need a Good Standing Certificate from the state of organization and a Certificate of Authority to Do Business from the Texas Secretary of State. Our loan advisors will coordinate with you on specifics.

State law limits the loan amount to be the taxes, penalties, interest and collection fees that have been charged by the county, plus closing costs and fees charged by TexTax in connection with the loan. There can be no cash out to the borrower at closing. As a general rule, TexTax has a minimum loan amount of $2,500, and maximum loan amount of $150,000; depending on the particular situation, exceptions may be granted.

Yes, depending on our evaluation of your property and the level of existing tax delinquencies. In many cases you may be able to obtain tax lien loans with TexTax for five or more consecutive years. We also offer a loan consolidation and modification so that you pay only a single monthly payment to us that encompasses all previous loans.

We want this process to be easy and convenient for you. We have a mobile notary service available and the closing can be held at a convenient location, including your home or office if you prefer. You are also welcome to close at our offices in Dallas.

No. TexTax is owned and operated in Texas. We handle our own loan servicing, and we do not sell our loans in a secondary market. We understand the real estate and lending markets here, and we are there with you from loan origination through and pay off and release of the lien.

Yes. TexTax is licensed to lend in all counties. The real estate must be located in Texas, however. Texas is one of only two states (Nevada being the other) that permits tax lien transfer lending. If the property is not located in Texas, we cannot make a tax lien transfer loan. The location or address of the owner of the property does not matter.

Yes. TexTax can make you a loan even if there is one or more existing liens on the property. We will need to know the name of your existing mortgage lender, and by law a notice will be sent to your lender advising that your taxes have been paid by us.

Yes, TexTax is also licensed to make property tax loans on your residence or your secondary residence. There are criteria that you would need to meet – you cannot be 65 or older or disabled if the property is your personal residence. Further, in most cases the taxes owed must be $2,500 or more to meet our underwriting criteria. We have very attractive rates for properties valued at $400,000 or more.

Tax lien loans are suitable for all commercial properties. However, if you are disabled or age 65 or older, and the property that you owe taxes on is your homestead, you cannot get a property tax loan. Instead, check with the county Tax Assessor’s office, and ask for a deferral of your taxes. You are entitled to tax deferral under Texas Tax Code, § 33.06. With deferral status, you can stop paying property taxes, and the taxing authorities cannot foreclose on your residence. Also, the penalties that are charged to your tax account will be reduced substantially. Note, however, that the taxes do not go away. They are postponed until you move from the homestead or die. When that happens, you or your heirs will have 180 days to pay the taxes. Once it is no longer your homestead, the property is not eligible for homestead exemptions and a property tax lien loan is then permissible.

If you have been through a bankruptcy previously, you are still eligible for a property tax loan. However, if the owner of the real estate is currently in bankruptcy, then you do not qualify for a property tax loan through TexTax.

Not paying your taxes and incurring the penalties, interest and other fees the county charges is extremely expensive and not an attractive financing option. The effective rate of these costs can top 47% in the first year alone. By comparison, a property tax loan through TexTax can save you up to thousands of dollars in the first year alone. See our Loan Calculator for an illustration of the money TexTax may be able to save you. We encourage you to compare what payback plans the county may offer you to the terms we offer. You may be able to make an agreement with the county for the repayment of your delinquent taxes in installments; however, you will still be charged penalties and interest on the unpaid balance. Additionally, most counties only make short-term loans and require a large down payment.