What We Know About Property Tax Lending So Far

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Don Baylor /(512) 320-0222 x 108

October 18, 2007

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Property tax lending is the practice of soliciting property owners who are delinquent in their property tax payments to take out a loan to cover the tax payments. In return, the lender takes over the tax lien on the property, allowing the lender to foreclose on the property if payments are missed. Local county tax assessors/collectors offer a wide range of options to delinquent property owners that would allow them to avoid taking out a property tax loan. Despite these options, property tax lending is a rapidly growing industry in Texas, targeted especially at residential homeowners, who account for roughly four out of every five tax loan borrowers. The Texas Finance Commission is now reviewing regulations governing this type of lending.