Questions on Property Tax Financing
Frequent Questions On Property Tax Loans in Texas
We know that financial issues and property taxes can sometimes seem confusing. That’s why RETax Funding provides the best trained, knowledgeable, and professional financial consultants in the state of Texas. Our friendly tax funding specialists can answer your questions fast with your ultimate tax benefit in mind.
Here are just a few common questions our customers ask about their residential and commercial property taxes. Click the links below to jump down to a topic, and click the “Back to Top” links to return to the top of the page.
Am I really getting a “loan”?
Although “property tax loan” is a phrase commonly used, you are not technically taking out a loan. A loan involves taking on additional debt that you have to repay. By using RETax Funding, you are not incurring any additional debt. This is the same debt already in place for your residential or commercial property.
Your County places a tax lien on your property when property tax bills are sent every October. The property tax lien is released once you pay your property taxes. We agree to pay your property taxes, which are followed by a transfer of the tax lien from the county to RETax, and the tax lien is released once you repay the financed amount.
What if I change my mind after closing?
If your property is a homestead property, Texas law gives you a three-day right of rescission to cancel your documents.
Will foreclose on my property if I miss a payment?
Our goal is the same as yours: to avoid foreclosure. We view foreclosure as the last possible resort. However, Texas law does allow us to foreclose on a property after a loan is delinquent and we provide a notice of default and give the property owners an opportunity to cure the situation.
Does my taxing authority provide any exemptions for property taxes?
Possibly. RETax encourages you to consult with your local taxing authority to inquire whether you are eligible for any exemptions. Exemptions may be issued for members of the armed forces, disabled persons, persons over 65 years old, and homestead property holders. In fact, we typically do NOT offer a loan to anyone eligible for exemptions that might entitle them to interest rates lower than those we offer.
What is the total amount of interest, penalties, and fees that a taxing authority will charge if I am delinquent on my property taxes?
As soon as your taxes are delinquent (February 1st), the taxing authority will charge 7% in interest and penalties. In most counties, that rate increases 2% per month until July 1st, when the taxing authority charges a collection fee of 20%. Therefore, property taxes delinquent on July 1st have incurred 38% in interest, penalties, and fees—and the rate increases each month, culminating at 44% just in the first year of delinquency! See the County Tax Chart
Will a new lien be placed on my property?
No. If your taxes are delinquent, then your property already has a lien placed on it by your local taxing authorities. This lien automatically attaches to all property on February 1 of each year in order to ensure payment of that current year’s taxes. This lien is simply transferred from the county to RETax Funding as we pay your taxes.
Can my taxing authority foreclose on my property if my property taxes are delinquent?
Yes. Your taxing authority can file a delinquent tax suit in court 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. The longer your taxes go unpaid, the more likely you are to be sued.
Do RETax Funding’s tax officers speak Spanish?
Sí. Nuestros préstamo consejeros y cortesía cierre son bilingües y puede contestar sus preguntas y realizar su cierre en español. Oprime aquí para mas información.
Can I get financing for several properties to pay delinquent taxes?
Yes. RETax Funding can fund multiple properties. We can make multiple plans and schedule closing for all your properties at the same time.
Can I get a property tax payment plan if I have a mortgage or an existing loan on my property?
Absolutely. Many of our borrowers have existing loans on their properties.
If both the County and RETax Funding can foreclose on my property, why should I choose RETax?
Our company will provide you with significantly more time and flexibility to avoid foreclosure. We can place you on a manageable plan spread over ten years if necessary. RETax Funding can also work with you to find a solution in the event that you fall behind on your monthly payments. Our goal is the same as yours: to keep your property safe and in your hands.
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 then you miss 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.
The Application Process
How do I apply for a property tax plan?
Either call us at 877-360-4065 or submit an application on our website. One of our tax consultants will contact you at the number and time you request.
What information do I need when I call?
How long will it take for approval?
Most of our borrowers are approved the same day and over the phone.
If I am approved, how soon can we close?
It typically takes 2-3 business days from the initial telephone call. After all documents are signed, we are required by state law to wait three days in case you change your mind. In all cases, however, we will rush your closing in order to avoid additional fees, charges, or even foreclosure by the taxing authority.
What types of properties do you finance?
RETax Funding finances property taxes to owners of residential property, commercial property, investment property, and undeveloped land.
Can I qualify with a poor credit history?
Most likely. RETax Funding does not rely on a credit report from a third-party source. We understand that unforeseen circumstances might affect our customers’ credit history and we work with our customers to find a suitable program.
Is there an application fee for residential or commercial plans?
No. RETax Funding is designed to provide relief. Therefore, our borrowers pay NO application fee and NO out-of-pocket expenses. However, for certain larger accounts, we may require a deposit to cover an attorney’s fee and other third-party costs that will be credited back to you at closing.
Even though RETax Funding charges NO application fee and NO out-of-pocket expenses, can I cancel the plan and not be responsible for any fees?
Yes. If your property is a home or residential property, Texas law requires that you have a three-day right of rescission to cancel. In the case where a deposit was received as described above, the deposit would be returned to you less third-party costs.
Can I apply for a loan from RETax Funding and pay my property taxes before they become delinquent?
You can apply for a property tax plan at any time. However, Texas law prevents us from financing before the taxes are actually delinquent (after January 31st). The exceptions are that if, at any time prior, there had been a property tax plan made for your property or you do not have a mortgage. Then, RETax Funding can pay your future taxes before they would become delinquent.
Can I finance current taxes and delinquent taxes from past years?
Yes. A property tax plan from RETax Funding will immediately pay off all current and delinquent taxes, penalties, and interest, as well as any collection or attorney’s fees.
If I already have a property tax plan from RETax Funding for previous taxes, can I get another plan for this year’s taxes?
Yes. RETax Funding can pay your current taxes with a new account. Our property tax advisors will work with you to match your needs.
Can I use RETax Funding to pay personal property, federal income taxes, or for other purposes?
No. RETax Funding funds only Texas property owners’ real estate property taxes. We do not finance taxes above the amount related to the property tax plan or for personal property taxes, state franchise or sales taxes, or federal income taxes.
If I am approved, how soon until we can close on the payment plan and have our taxes paid?
RETax Funding can close your plan within one or two days of your initial call. We are legally required to wait three days from your closing to pay your taxes. Usually, your taxes can be paid in as little as four days after your first call.
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Terms & Fees
What upfront costs are included in my payment plan?
None. We designed our plans to minimize monthly payments and to eliminate any out-of-pocket, upfront costs to our customers. We can finance all costs (such as recording fees, title search expenses, origination fees) so that you pay nothing at closing.
How much are the closing fees? We have the lowest fees in the industry. In fact, if you find another licensed property tax company with the same interest rate and lower fees, we guarantee that RETax will beat that competitor’s fee by $100. This guarantee helps you save money. All fees will vary based on a variety of factors and the complexity of underwriting.
Is there an application fee?
No. Our borrowers pay no application fee or any other upfront, out-of-pocket expenses.
What interest rate does RETax Funding charge?
Our interest rate varies depending on your situation; however, it stays much lower than you would pay the county. Plus, your interest rate will be fixed for the life of the plan, even when national interest rates rise. We also guarantee that we will match any competitor’s interest rate and fees.
Can I determine the length of my property tax plan?
Yes, to between two and 10 years. Our plans are unique, because we work with our borrowers to find the plan that best fits their budget.
How long is the term?
We offer terms of two through 10 years, depending on the customer’s situation and needs. Interest only is also available.
May I prepay my loan?
Of course. There are no prepayment penalties on residential plans. In fact, we encourage borrowers to prepay. It saves money in interest charges.
How do I make my monthly payments?
You can make your monthly payment in several ways, including automatic payment from your checking account each month. You also can make your monthly payment by personal check, cashiers check, money order, or at our online bill pay website.
When are my payments due?
Payments are generally due on the 1st or 15th of each month, unless special arrangements are made in advance.