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Property Tax Loans vs Tax Lien Transfers: What’s the Difference?

Despite zero state property tax, Texans experience various difficulties due to taxes imposed by local taxing units. Homestead owners are advised to pay taxes on time to avoid additional burdens that can destabilize their financial condition.

To aid homeowners across the Texas county, various lenders have tailored solutions in the form of property tax loans that can prevent them from going into default or accrue penalties.

Owners can also use the lien transfer option to end the delinquency costs that are draining their revenues. Before knowing the benefits of property tax loans over lien transfers, let us get to know in what circumstances they are useful.

What are Property Tax Loans?

Many people who have faced difficulties paying their property taxes might be well aware of these loans. But for the first-timers, who are willing to know more, it is a perfect cost-saving alternative that can restrict your tax bill from rising as high as 48 percent in just 12 months. Moreover, property tax lending has been in existence for several decades and has helped more than a hundred thousand Texans to get their finances on track.

What is a Lien Transfer?

Tax lien transfer is a provision in the law that enables owners to authorize a lender who can pay their property taxes on time and accept monthly to reduce the burden. It can stop the taxing units from charging interest and penalties on unpaid taxes. It can stop the taxing units from charging interest and penalties in the forthcoming months.

Risks of Delinquency

In case, if the property owners fail to pay their taxes, they will have to face the consequences like paying interest charges and penalties. Later on, if these dues are pending for payments, the taxing authority will attach a tax lien to the property. They may also initiate the foreclosure process to recover unpaid dues after a certain period.

Property Tax Loans Vs. Lien Transfers

By acquiring property tax loans, homeowners can make payments to the taxing authorities despite falling short of cash reserves. Businesses can also grab these loans to fund their daily operations, new projects, and even process payrolls. Credible lenders in Texas also play the role of a financial partner to help enterprises in turbulent times.

Whereas, lien transfer might help individuals or enterprises once they are default. Compared with lien transfer, property tax loan is the preferred option as the homestead owner or entrepreneur can avoid interest and attorney fees by paying taxes ahead of the deadline.

Advantages of Property Tax Loans

1. Regardless of Credit Score

When individuals or enterprises move to banks or financial institutions for loans, they track the borrower’s credit history before lending. In case, if the credit score is bad, they would be reluctant to offer any loans to the borrower. But, it is not the same when they approach any property tax lending institutions. The only eligibility factor in such cases is, the borrower should not be bankrupt.

2. Repayment Tenure

Timeline to repay the loans is a crucial factor in reducing the burdens. To minimize the strain on borrowers, many reputed lenders in Texas offer loans with repayment tenure up to 10 years. These loans give scope for the borrowers to increase their financial stability.

3. Merge Multiple Tax Loans

Let us assume if the borrowers have too many repayable loans, they might forget to pay the loans in some instances. To prevent such circumstances, lenders allow borrowers to merge all tax loans and pay them monthly.

4. Delayed Initial Payments

At times, repaying the loans from the following month can be difficult for individuals. To help homeowners in such situations, property tax lending companies provide no payment option for up to 6 months. This option enables the borrowers to plan well ahead and remain hassle-free.

Different Aspects you Need to Know about the Property Tax Lender

1. BBB Accreditation

BBB accredited businesses are popularly known for resolving their customer’s complaints. Moreover, only those businesses are given BBB certification, which can build trustworthiness among consumers and meet specific standards. Property owners are advised to look for BBB logo, reviews, and ratings before taking loans from lenders in Texas.

2. Zero Out of Pocket Expenses

There are many instances in which borrowers with bad credit scores may fall victim to low-rated lenders who charge out of pocket expenses. At times, they may also ask for down payments while taking loans and also ask for money while closing the loan. To avoid such unwanted costs, homeowners may find a BBB accredited lender with the best rating.

3. Monthly Statements

Almost all responsible lenders across Texas pass on monthly statements well ahead of the payment date. By doing so, borrowers can prepare themselves to pay their dues without taking much pressure.

4. Lowest Interest Rates

Finally, borrowers should also look for the cost of the loans or interest rates charged on the loans. Many honest lenders provide free no-obligation quotes to compare their products with other competitors and find the best option available.

Owners can choose the best property tax loan lender to get rid of burdens and improve their finances in the long-term. We recommend homestead owners to follow the above-recommended steps before acquiring loans from any lender.

Ashish Reddy
Ashish Reddy is a Content Writer who has a primary goal to provide information related to small business property tax loans, residential property tax loans, and commercial property tax loans. He is well aware of several options in the property tax loans that have multiple advantages for the enterprises in the long term.


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