Can someone take your property by paying the taxes in texas

Racking up delinquent property taxes in Texas is bad news. Fall too far behind, and your childhood home in Harris County might just become a Harris county foreclosure.

Fortunately, the state of Texas will give you a heads up before that happens. They'll put the overdue amount plus interest and penalties into a lien on your property and give you ample chance to pay your debt before your home gets sold to a new owner or, failing that, ends up in the Texas tax sales property listings. If the financial burden is too heavy for you, remember this: You don't have to be the person paying the delinquent tax in order to retain ownership of your property, so don't hesitate to reach out for help.

Paying Delinquent Property Taxes in Texas

As long as you pay off the delinquent amount before your home is foreclosed or your foreclosed home is sold, you'll retain ownership of the property. To make matters easier, any individual can pay taxes on someone else's property with no effect on the ownership of the home.

Typically, you'll have the option to pay by mailing a check or calling the local tax office and paying by credit card, debit card or e-check by following the instructions on your tax due notice. You can also go down to your county's tax office with paperwork in hand to make the payment. In either case, the payment method does not have to be in your name if you have a party willing to make the payment for you. Most tax offices will even accept cash.

Likewise, counties like Fannin, Harris and others offer online payment options that accept all major credit cards. The paying person can simply enter his credit card information to cover your taxes. That way, you'll prevent your home from showing up at the Harris County auction house.

Exceptions to the Rule

Disabled or elderly property owners may not need to have their delinquent taxes paid by a friend or family member. In Texas, disabled persons and people over the age of 65 not only have the option to defer taxes for up to 180 days as long as they live in the respective property, they also have the option to pay the amount due in four separate installments. In many counties, like Fannin and others, all taxpayers are eligible for installment agreements.

In the case that the taxing agent is responsible for your taxes falling into delinquency, the state will waive the penalty and interest fees, but you'll still be required to pay the taxes.

2018 Tax Laws

Though the process for accruing and paying delinquent property taxes in Texas didn't change between tax years 2017 and 2018, your penalty and interest percentage amounts will change depending on what year your taxes became delinquent and when you or your payer make the payment.

You can get a full, up to date breakdown of penalty and interest on delinquent property tax via the Texas Comptroller of Public Accounts official website.

2017 Tax Laws

The percentage owed for penalty and interest on delinquent property taxes in Texas varies depending on how long your tax has been delinquent.

For instance, if the taxes owed became delinquent in 2017, you'll owe a penalty and interest percentage amount of 0.19 if you pay in August of 2018, 0.20 if you pay in September of 2018 and so on.

References

Writer Bio

Dan's decade-long experience as a freelance writer and small business owner has seen him contribute to financial publications including Chron.com, Zacks.com, MSN Money, Fortune, Motley Fool and others.

When Is Your Tax Bill Due?

To gauge how long can you go without paying property taxes, you have to start with this question. If you’ve been living in Texas for a while now, you know property taxes are due around the same time every year. But let’s review the relevant deadline dates for those who might be new to the area. For most jurisdictions, property taxes are due by January 31. Taxes must be paid by that date, so on February 1, all unpaid taxes are seen as delinquent. In some cases, taxing authorities will honor a January postmark, but it’s best not to take the chance.

According to the Texas Comptroller’s Office, taxing units are required to give property owners at least 21 days after their original tax bills are mailed to pay the amount due. If your tax bill is not mailed out until after January 10, your delinquency date will get pushed out. For instance, if the bill goes out on January 20, you won’t get that 21-day window to pay by the 31st. In this case, the new delinquency date would be March 1.

What Happens Once You Fall Behind on Your Property Taxes?

Once your Texas property taxes are late, you’ll incur a 6% penalty and start to accrue 1% in interest on the past due amount. This means that February 1st you have incurred a 7% hit. From March 1 to July 1, the penalty and interest will continue to increase monthly at 2%. On July 1, the penalty, fees and interest jumps to 22%, having accrued a substantial collections fee. From July through December, you’ll also be charged 1% in monthly interest.

Most taxing authorities enlist the help of attorney’s offices to collect past due taxes. When that happens, you typically see a penalty of at least 20% on your bill to cover legal expenses and court costs. This is where that large July spike in fees comes from. It is common for a single property to receive collection bills from multiple law firms: County, ISD, Utility Districts, etc. Taxing districts may allow property owners to set up installment plans. However, keep in mind that this is not a mandatory option unless a homestead exemption is involved. Even then, you can expect to pay a sizeable down payment and the annual interest rate typically runs at 12%.

If your tax bill is way behind, the taxing district might sue as a last attempt to collect the delinquent amount. If this happens, the court costs will be added to the outstanding amount. And don’t think that you’ll be off the hook for your property taxes when you sell your commercial or residential space. If you owned the property on January 1, you can still be held liable for the amount due, regardless of whether or not the property has been transferred or sold.

How Far Behind In Property Taxes Can You Get Before Foreclosure?

In Texas, the foreclosure process can start at any time. The process can be completed in about 60 days if the foreclosure is uncontested. As we covered in How to Get Rid of Property Tax Liens in Texas, a lien is a local, state or federal government’s legal claim against your property when your taxes aren’t paid. If the lien is not satisfied within a reasonable amount of time, the lienholder has the right to foreclose on the property. The period in which this occurs can range from 60 days to more than 120 days.  It all depends on the taxing authority and local market conditions.

In simple terms, there is no magic window. The longer you wait to settle your delinquent property taxes, the closer you get to substantial fees, penalties and even foreclosure. Don’t let any of that become an option. If you need help managing your taxes, Tax Ease can assist you.

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