Frequent Questions On Property Tax Loans in Texas
Am I really getting a “loan” from Propel Tax?
Although “property tax loan” is a phrase commonly used, you are not technically taking out a loan to pay off a tax lien. A loan involves taking on additional debt that you have to repay. By using Propel Tax, you are not incurring any debt – you are merely authorizing the transfer of the existing tax lien that you already owe from the government to Propel. 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.
If I am approved, how soon until we can close on the property tax payment plan and have our taxes paid?
Propel Tax can close your plan within 1 or 2 days of your initial application. On homestead properties, we are legally required to wait 3 days after your closing to pay your taxes. In total, we can pay your taxes in as little as 4 days after your initial call.
After I close, can I access my account information online?
Of course. Propel built the industry’s first (and only) online customer portal so that customers can view their account access and make payments at any time.
What makes Propel different than other tax lenders?
Almost everything - our people, processes, technology, experience, and reputation. Click here to learn more.
What up-front costs do I pay for on a property tax payment plan?
None. We designed our plans to minimize monthly payments and to eliminate any out-of-pocket, up-front costs to our borrowers. Therefore, we can finance all costs (such as recording fees, title search expenses, origination fees) so that our borrowers pay nothing at closing.
How much are the closing fees?
We have very low fees. In fact, if you find another licensed property tax company with the same interest rate and lower fees, we will try to match or beat the competitor’s fees. This can help you save money. All fees will vary based on a variety of factors and the complexity of underwriting. In an effort to help its existing and future customers, Propel also fought hard to lower the closing costs across the industry. No other tax lender supported lowering the fees as much as Propel.
Is there an application fee?
No. Our borrowers pay no application fee or any other up-front, out-of-pocket expenses.
What interest rate does Propel Tax charge for a property tax payment plan?
Our interest rates vary and have always been extremely competitive. Plus, your interest rate will be fixed for the life of the plan, even when national interest rates rise. We also try to match any competitor’s interest rate and fees.
Can I determine the length of my property tax plan?
Yes, between 2 and 10 years. We work with our borrowers to find the plan that best fits their budget and needs.
May I prepay my loan?
Of course. There are no prepayment penalties on our loans. In fact, Propel encourages our borrowers to prepay. It saves them money in interest charges.
How do I make my monthly payments?
You can make your monthly payment in several ways. The best way is to have Propel automatically debit your checking account each month. You also can make your monthly payment by personal check, cashier’s check, money order, or at our online bill pay site.
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.
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.
Does Propel place a new lien on my property?
No. If your taxes are delinquent, then your property already has a lien placed on it by your local taxing authorities. That lien is transferred to Propel when we pay your taxes. The lien is released when you pay off your loan with Propel - just like it would be released if you paid your taxes directly.
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.
Will Propel Tax foreclose on my property if I miss a payment?
Propel views foreclosure as the last possible resort and has done so less than 0.5% of the time. Texas law does allow a tax lender to begin the foreclosure process if a loan becomes severely delinquent and property owners are given multiple opportunities to bring their current loans.
Does my taxing authority provide any exemptions for property taxes?
Possibly. Propel Tax 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, Propel typically does NOT offer a loan to persons eligible for exemptions that might entitle them to interest rates lower than the rates we can 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 most taxing offices charges a collection fee of 20%. Therefore, property taxes delinquent on July 1st have incurred 41% in interest, penalties, and fees – and the rate increases each month, culminating at 48% just in the first year of delinquency! See the County Tax Chart.