How To Handle Delinquent Property Taxes In Texas
How To Handle Delinquent Property Taxes In Texase
If you or someone close to you are dealing with property tax problems, you might be worried about your ability to pay them back. The consequences of not paying your taxes can result in losing your home if the problem is not taken care of. Sometimes in Boerne TX, the big issue is that you never know when they will decide to move forward with the foreclosure of the home to satisfy the accrued property tax debt. So, what are your options when facing this issue? Keep reading…
Property taxes in Texas can be more than overwhelming. Understanding how to avoid having your property up for auction at the tax sale for delinquent taxes. In San Antonio, the taxing authority is Bexar County and they are responsible for holding the tax sale, issuing the tax liens, and enforcing the Texas property tax codes. Texas property tax rates are continuing to increase which makes the risk of going into the foreclosure process even greater because of delinquent property tax owed.
What Can Happen To Unpaid Property Taxes in Texas?
Delinquent taxes over a long period of time can lead to the worst-case scenario. You could lose your home. You will likely incur penalties, fines, and interest should someone buy the tax lien on your home. When you fail to pay your property taxes, the county government will put a tax lien on your property until the balance has been paid.
If the debt remains unpaid, the county will eventually auction off the lien to the highest bidder. At this point, you must pay the bearer of the lien the back taxes, plus fees, plus penalties, and plus any interest owed to the tax lien bearer. At this time, if your house is foreclosed on by Bexar county, you lose the right to occupy the property.
After the house is foreclosed on by the taxing authority, your redemption period begins. You have anywhere from 12-24 months to pay all of the back taxes along with the penalties and interest. If you do not redeem, you no longer have a right to get your house back.
What Are Your Options With Back Property Taxes in Bexar County?
There are some options you have when you have back property taxes in San Antonio, TX, or the surrounding area. You can pay them, try and get them lowered, or work with a direct house buyer who is willing to help you out of the hole you are in.
Nobody wants to lose their home, especially to a complete stranger at a foreclosure auction. Before your unpaid property taxes get out of hand, do everything possible to resolve the situation.
Pay Off Delinquent Property Taxes in Texas
This option can be seen as the best and most obvious option. But, how do you do it if you are struggling to pay them in the first place? You can create a savings and repayment plan or work with your local property appraiser to try to get them lowered. Unfortunately, this option isn’t realistic for many people facing this problem.
1. Save To Pay Taxes Owed
If saving to pay down the property tax debt is an option, sit down with a financial planner or someone who can assist you by taking a good honest look at your financial situation. An outside perspective on your spending might be just what you need to pay off your debts. Come up with a plan to save a set amount each month and use that to pay down the balance of your property taxes.
Bexar County is unlikely to initiate the foreclosure process if you are making regular payments to your outstanding balance. Keep in mind that you will not only need to pay back the back taxes that have built up, but also the fees, penalties, and interest that will have added to the total balance.
2. Negotiate A Lower Tax Appraised Value
At times, you can work to have the property appraiser lower the value of your house, which can lower your tax rate if you believe they have been assessed incorrectly. You won’t be able to negotiate the rate at which you are taxed; however, you can attempt to negotiate the assessed value of your home.
Check to make sure they have the important details of your house recorded correctly. For example, don’t let them say you have 2 bathrooms when you really only have 1.5. The assessor will look at other homes in your area and what they are selling for. Sometimes, you need to take a deeper look at the numbers.
If you are going to challenge the value the assessor has placed on your home, make sure you have comparable houses to compare it to. A fair warning: This process can be time-consuming and frustrating, and in today’s climate of run-away taxes, it doesn’t always work.
Remember, this option is great for future taxes but doesn’t do anything to resolve a tax bill that has already gotten out of hand and is past due.
3. Using A Property Tax Loan For Delinquent Property Taxes
A property tax loan can provide temporary assistance in a time of need but should not be taken lightly. Getting a private loan from someone to catch up on your property taxes can help in the short term but make sure you read all of the fine print and terms and conditions carefully before you sign anything.
Keep in mind that you will most likely have fees and penalties added to your original debt. The entire amount must be paid off in order for the county to remove the lien on your property. The interest can be high and there can be severe penalties for nonpayment. Before you get yourself in this situation, take a good look at all of the options available to you first.
4. Start A Payment Plan To Avoid Property Tax Foreclosure
If you’re behind on your property taxes, you may be at risk of foreclosure. However, there is a way to avoid this by establishing a payment plan with your county tax assessor. This will allow you to catch up on your payments and avoid the penalties associated with the foreclosure.
In most cases, you will be required to make a down payment and then make monthly payments until the balance is paid off. However, the terms of the payment plan can vary depending on your situation. If you’re struggling to make ends meet, it’s important to contact your county tax assessor as soon as possible to discuss your options. By doing so, you can avoid property tax foreclosure and keep your property.
Selling Your Property With Delinquent Property Taxes
Selling a property in Texas that has property taxes owed is actually quite common. While there is technically a tax lien on the property any time property taxes are due, there is nothing that will prevent a house from being sold.
Many homeowners who are considering selling a property with back taxes do so prior to the property being scheduled at the tax sale auction. However, if the property has been scheduled for auction, you may need to sell quickly before the house is sold at the property tax sale.
Selling With A Realtor When There Are Back Taxes
When you owe back taxes on a property, it can be tricky to sell the property through traditional means. Many realtors will not work with a property that has back taxes. However, there are some realtors who are willing to work with houses that have property taxes owed.
One thing to keep in mind is that the realtor’s commission will need to be paid out of the proceeds from the sale, so you may want to negotiate a lower commission upfront. In addition, you will need to make sure that the back taxes are paid off before the sale is finalized. Otherwise, the new owner will be responsible for them.
These realtors will often have a network of investors who are willing to take on the risk of the back taxes in exchange for a discounted price on the property. In this case, it may be better to contact the homebuyer directly to avoid having to pay commissions in addition to the taxes owed.
Finding A Local Cash Homebuyer
There are local buyers and investors out there who are ready to help you right now so you don’t have to sink more money into the house or toward your tax bill. They will handle everything so you can sell the house and walk away from your property tax problems once and for all.
One of the best options is to sell your property with tax liens and work with a reputable home buyer who is willing to help you tackle the liens and back property taxes you are facing. When working with a private buyer, make sure you are still receiving a fair price. No matter how desperate your situation might seem, you should always be treated fairly and receive a fair and honest price.
Capstone Homebuyers Buys Houses With Back Taxes Owed
Capstone Homebuyers is a team of professional people who buy San Antonio TX houses. We are homebuyers who can help you by purchasing your home outright. We will take care of the back taxes, liens, and anything else that is stopping you from being able to sell your house in the traditional manner.
Our easy 3-step home buying process means you don’t have to feel stuck, burdened, or feel exhausted by the amount of property tax debt you are facing. We have worked with people all over the San Antonio area who were dealing with property tax problems. (Just check out our testimonials to hear it directly from them.) Let us help you by using our knowledge and expertise to get you out of the situation fast!