TAX LIEN TRANSFER LOANS

It has been brought to our attention that companies are mailing letters to taxpayers suggesting the taxpayers have delinquent taxes and encouraging the taxpayers to call them for a loan. Before you contact these companies as instructed, please verify with the appropriate tax collector if your property taxes are in fact delinquent.

The companies mailing these letters are in the business of making loans to delinquent taxpayers for the purpose of paying delinquent taxes. When you accept a loan from one of these companies, they receive as collateral for the loan, a tax lien on your property. The transfer of a tax lien to a private company or individual is allowed by state law; however, certain restrictions protect and prohibit the parties involved.

State law allows these companies, providing the loan, to charge 18% interest on the borrowed funds and the right to foreclose the tax lien in one year if the terms of the loan are not met and the loan falls into default.

While a loan of this type may be your best or only option, we recommend you thoroughly understand the terms of the loan and use only reputable loan companies. We are not discouraging anyone from using these services; however, we caution you from doing business with companies that make false claims in order to encourage you to call.

HOMESTEAD EXEMPTION SCAMS

For many years now, certain companies have solicited taxpayers via mass mailings regarding the application of homestead exemptions. The letters encourage taxpayers to pay a fee to the company in order to obtain a homestead application and advice on saving taxes. These companies prey on elderly taxpayers that may not have filed for their homestead exemptions or understand the process of obtaining a homestead exemption.

In the State of Texas, filing for a homestead exemption is free and very simple to do. You can download a homestead application from our web site. You can also contact our office for advice on how to complete and file the application. The Appraisal District does not charge for these services.

We recommend you ignore any company that requests money for assisting you with the homestead application process. Please contact us and we will help you for free.