How to Receive a Loan for Your Property Tax Payments

Navigating the tax world can be confusing, especially when it comes to understanding the property tax loan process. But with the constantly rising Texas tax rates it’s more important than ever to understand your options, our qualification process, and how our plans have helped more than 50,000 customers find a peace of mind.

Thankfully, retaining a sense of financial freedom is simple with the help of our relief services. Check out some of our most asked questions, and if there’s still something you’re curious about, give us a call at 877.324.8445.

What does a loan from Propel Tax look like?

Starting with the basics, it’s important to note that you don’t take out a loan to pay off a tax lien. Although the phrase, “property tax loan” is often used, you aren’t actually incurring debt but merely authorizing the transfer of an already existing tax lien to Propel. Liens are placed on properties by local tax offices and sent out every October. The lien is then only released once your tax is paid. When using Propel, we agree to pay your property taxes, which are followed by a tax lien transfer from the tax office to Propel.

If I’m approved, how quickly are my property taxes paid?

Loans can be closed in 1 or 2 days. However, we are legally required to wait 3 days from closing to pay your taxes if the property is your homestead. So in other words, we can have your taxes paid in just 4 days from the initial phone call.

Are there any up-front costs on a tax loan?

Nope. Our loans are designed to minimize—not maximize—monthly payments, and to completely cut out any unforeseen costs to our borrowers. In other words, our financing options include all costs, such as recording fees, titles, search expenses, and even origination fees, making it so you don’t have to put any cash down at closing.

What about an application fee?

Nope — we are committed to cutting out any unforeseen costs to our borrowers.

What interest rate does Propel Tax charge?

Interest rates vary from situation to situation. But your interest rate will be fixed during the life of your plan, even if national interests rates increase. Also, if you happen to find another licensed property tax company with a lower interest rate, we will try our best to match or even beat those competitors interest rates. We fight hard for our existing and future clients and believe it’s our responsibility to improve your property tax situation.

Do I get a say in the length of my property tax plan?

Absolutely. Our plans can range from 2 to 10 years.

How do I make my monthly payments?

We have several options. You can pay with by personal check, cashier’s check, money order, or even online through our customer portal. The best overall method, however, is to have autopay setup so that Propel debits your checking account each month. The setup and cancellation of autopay can also be done through the customer portal.

What happens if I change my mind?

In the state of Texas, as long your property is considered a homestead property, you’re given a three-day right of rescission when it comes to canceling your documents.

What does Propel do if I can’t make a payment?

At Propel, we view foreclosure as a last resort. But in certain circumstances, this is the only option. In the state of Texas, law does allow Propel to begin the foreclosure process once a loan becomes delinquent and we’ve provided a notice of default and an opportunity to cure.

Am I eligible for any property tax exemptions?

Yes, depending on the circumstances. Some local taxing authorities provide exemptions for the armed forces, homestead property holders over 65 years old, homestead property holders, and disabled persons. In certain cases, Propel does not offer loans to homestead property holders over 65 years old or disabled persons, as the local taxing office may offer payment plans that are better than what we can offer. We want what is best for the property holder.

What’s the largest amount of interest, penalties, and fees that a taxing authority will charge if I’m delinquent on my property taxes?

In short: you can accumulate a 44% charge in interest and penalties in just the first year. As soon as you’re delinquent on February 1st, the taxing authority will charge 7% in interest and penalties. The majority of counties have a rate increase of 2% per month until July 1st, when the taxing authority charges a collection fee of up to 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.

Eligibility requirements for property tax financing in Texas

Our goal is to help every Texas property owner keep a roof over their head. In doing so, we strive to understand each and every borrower’s needs. Propel has paid over $600M in property tax loans since 2007. Bringing Texas residents a property tax solution is important to us and we understand that no two customers are alike.

What information is needed for a property tax loan?

Residential

• Name of Property Owner(s)
  
• Property Address
  
• Mailing Address
  
• Contact Information (phone number, email, etc.)
  
• Mortgage Company information (if any)
  
• Date of Birth
  

Commercial

• Information about the borrowing entity (e.g., articles of incorporation, partnership agreements, etc.)
  
• Property Address
  
• Mailing Address
  
• Date of Birth
  
• Contact Information (phone number, email, etc.)
  
• Mortgage Company Information (If any)
  

For any other questions on eligibility, please call our Texas property tax loan consultants. We will assist you in resolving any questions or clarifying the process our company uses to expedite the loan process.