A homeowner restructures an existing property tax loan and a new delinquent year into one affordable monthly payment.
Important Note
This case study is a generalized educational example showing how some Texas homeowners may refinance an existing property tax loan. It is not a promise of results and does not replace legal, tax, or financial advice.
Background
The homeowner in this case, whom we will call David, lived in his homestead property in Tarrant County. A couple of years before contacting We Pay Property Taxes, he had taken out a property tax loan with another lender to cover a delinquent bill that had become too large to handle all at once.
At that time, the monthly payment made sense for his income. Later, his employer reduced his work hours, and his income dropped. The payment that had once fit his budget started to feel tight and stressful. Then a new year’s tax bill arrived, and he could not pay it in full.
“I thought I had fixed the issue when I got that first loan,” David said.
“Then another year hit, and suddenly I had a new problem on top of the old one.”
The Situation
By the time David reached out for help:
- He still had an outstanding property tax loan with his original tax lender.
- He had become delinquent on the most recent tax year, so the county showed a new unpaid balance with penalties and interest.
- He was worried that if he could not get this under control, he could face legal action or foreclosure.
- He found it confusing and stressful to manage both a private lender and a new delinquent balance with the county.
He wanted to simplify his situation into one predictable payment that matched his current income.
How We Pay Property Taxes Helped
- Verifying All Balances and Status
With David’s authorization, We Pay Property Taxes:
- Obtained a payoff quote from his existing property tax lender to learn the exact amount needed to close out the old loan.
- Confirmed with the county the amount of delinquent taxes, penalties, and interest for the new unpaid year.
- Checked for any referral to a collection attorney or any pending legal actions.
This created a single, accurate picture of what he truly owed.
- Exploring Refinance Scenarios Based on His Budget
We then walked David through several refinance options, including:
- A shorter-term loan with a slightly higher monthly payment but lower total interest over time.
- A longer-term loan with a lower monthly payment that fit his reduced income more comfortably, while still paying the balance in a reasonable period.
For each option, we reviewed how the payment would affect his monthly budget and what the estimated total cost would be.
- Structuring One Consolidated Property Tax Loan
After reviewing the options, David chose a structure that prioritized:
- A single affordable monthly payment
- Enough breathing room in his budget to handle other expenses
- Flexibility to pay extra later if his income increased
We Pay Property Taxes then:
- Designed a new Texas property tax loan that combined:
- The payoff to the prior tax lender
- The most recent delinquent tax year and allowed charges with the county
- Set the term and payment amount to match David’s comfort level.
- Included no prepayment penalty, allowing him to pay down or pay off the loan early if he was able.
- Coordinating the Payoff and Transition
Once the refinance loan was approved and closed:
- We Pay Property Taxes sent payment to the original tax lender to pay off and close out the prior loan.
- We paid the county directly for the delinquent taxes and allowed fees.
- David received a clear schedule for his single new monthly payment and payoff timeline.
Results
After the refinance:
- David no longer had to manage multiple parties and multiple balances. Everything related to his delinquent property taxes was now handled through one loan and one payment.
- The new payment was sized to fit his actual income, so he could pay on time without constantly worrying about coming up short.
- He knew that if his work hours increased or his income improved, he could pay extra toward the loan or pay it off in full without incurring prepayment penalties.
“Having everything rolled into one payment I can actually afford makes it feel like a problem I can solve,” he said.
Lessons for Other Texas Homeowners
- A property tax loan is not always static; it may be possible to refinance and restructure when life changes and the original payment no longer fits.
- Combining an existing tax loan and a new delinquent tax year into one consolidated loan can reduce confusion and help homeowners stay on track.
- Any refinance decision should be made after comparing total costs, payment amounts, and alternative options with trusted advisors.
