Frequently Asked Questions

What is the amount of penalty and interest charged by taxing authorities?
Property taxes are due January 31st of each year. If taxes go delinquent, the taxing authority adds a 6% penalty and 1% interest, both of which increase 1% per month until July 1st at which time the taxing authority may also add up to 20% for attorney fees. Therefore, property taxes delinquent on July 1st can incur 38% in interest, penalties, and fees - and that rate increases 1% each month thereafter.

Will a new lien be placed on my property?
No. Your property already has a tax lien placed on the property from the local taxing authorities. This lien automatically attaches to all property on January 1st of each year to ensure payment of current year's taxes. This lien is simply transferred from the county to RETax Funding.

Can my taxing authority foreclose on my property if my property taxes
are delinquent?
Yes. Your taxing authority can file a delinquent tax suit at any time after your taxes become delinquent. Because the taxing authority automatically imposes a tax lien on your property each year, the court has the power to foreclose on your property to pay the tax lien.

Can I enter into a payment plan with my taxing authority?
Possibly. State law allows taxing authorities, at their option, to accept one-half of a taxpayer's taxes by November 30th (two months before the taxes are actually due) and the remainder by June 30th without paying penalty and interest. Not all taxing units offer this option. Also, an option to escrow for taxes may be available. RETax Funding encourages you to contact your local taxing authority to see if a payment option is available.

Does my taxing authority provide any exemptions for property taxes?
A homeowner age 65 or disabled may pay current taxes in four installments. The person must pay at least one-fourth of the taxes before February 1st. With this payment, the homeowner indicates that taxes are being paid in installments. The remaining payments are due before April 1st, June 1st and August 1st without any penalty and interest. If the person misses an installment payment, a 6% penalty and interest (at 1% for each month delinquent) is added to the installment amount. RETax Funding will not make a loan to persons eligible for these exemptions that would entitle them to interest rates lower than the rates we offer.