Options for Texas homeowners dealing with multiple delinquent years or existing property tax loans.
**Disclaimer:** This article is for general educational purposes only and is based on common Texas practices. It is not legal, tax, or financial advice. Always consult your own professional advisors before making decisions.
If you are behind on more than one year of property taxes, or you already have a property tax loan and are falling behind again, it can feel like you will never catch up. The county may be adding penalties and interest, a collection attorney may be involved, and you might already have a monthly payment to a tax lender.
The good news is that there are sometimes ways to refinance or consolidate what you owe so the situation is easier to manage. The right solution will depend on your income, equity, credit, long-term goals, and timing.
Option 1: Refinancing an Existing Property Tax Loan
If you already have a property tax loan, one possible option is to refinance that loan. In simple terms, refinancing means taking out a new loan to pay off the old one, sometimes along with additional delinquent years that have accrued since your original loan.
A refinance may allow you to:
- Combine your old property tax loan balance with new delinquent tax years
- Change the length of the loan term to reduce your monthly payment
- Adjust the interest rate or other terms, depending on eligibility and lender policies
However, it is important to compare the total cost over time, not just the monthly payment. A lower monthly payment may come from stretching the loan over a longer term, which can increase the total interest paid.
Option 2: Consolidating Multiple Delinquent Years into One Loan
Some Texas property owners do not yet have a tax loan but have fallen behind for two, three, or more years. In this scenario, a licensed property tax lender may be able to:
- Pay off several years of delinquent taxes, penalties, and allowable fees at once
- Convert that total balance into a single, predictable monthly payment
This can stop new penalties and interest from being added by the county on the years that are paid off, but it does not erase the cost of the taxes. You are still responsible for repaying the loan to the lender.
When evaluating consolidation, consider:
- How the payment fits into your monthly budget
- How long the loan will last
- Whether this approach allows you to realistically stay current on future taxes as well
Option 3: Including Taxes in a Mortgage Refinance
For some homeowners, especially those with strong income and equity, another option may be to refinance the primary mortgage and use the new loan to pay off:
- Delinquent property taxes
- Any existing property tax loans
- Other liens that may be attached to the property, if permitted
This can simplify your finances into one main mortgage payment. However:
- Mortgage refinancing standards are usually stricter than property tax loan underwriting.
- The process may take longer than working with a tax lender.
- Closing costs and fees must be carefully reviewed.
For some owners, a mortgage refinance can be an excellent solution. For others, it may not be available or may introduce new risks.
Option 4: County Payment Plans, Deferrals, or Selling the Property
In addition to loans, you may also ask your tax office whether they offer:
- Payment plans for delinquent taxes, especially on homesteads,
- Deferral programs for eligible over-65 or disabled homeowners on their residence homestead,
- Other local programs or relief options.
In some situations, a homeowner decides that the best financial decision is to sell the property, pay off the taxes, and preserve any remaining equity instead of trying to support payments on a home that no longer makes sense for their budget.
How a Property Tax Lender Fits into the Picture
We Pay Property Taxes is a licensed Texas property tax lender. When a homeowner contacts us about refinancing or consolidating, we typically:
- Review the delinquent years, any existing tax loans, and the county status,
- Explain how a new loan could be structured and what it would cost,
- Discuss how the payment might fit into the homeowner’s budget and long-term plans,
- Encourage the homeowner to compare this option with county programs, mortgage options, and selling, if appropriate.
Our goal is not to pressure anyone into a decision, but to provide a clear explanation of how a property tax loan might help and where it may not be the best fit.
Questions to Ask Before You Decide
Before choosing any option to refinance or consolidate property tax debt, consider asking:
- How quickly will this option stop penalties, interest, or legal action from the county?
- What is the monthly payment, and can I realistically afford it for the full term?
- What is the total cost over the life of the arrangement, including interest and fees?
- How will this affect my ability to pay future property taxes on time?
- How does this choice impact my long-term goals with the property (keep, sell, refinance)?
Final Thoughts
Refinancing or consolidating property tax debt can be a powerful tool—but only when it aligns with your broader financial situation and goals. For some, a property tax loan provides clarity and structure. For others, a mortgage refinance, county payment plan, deferral, or sale of the property may be a better fit.
If you are unsure where to start, consider speaking with your county tax office, consulting independent professionals, and contacting a licensed Texas property tax lender like We Pay Property Taxes for a no-cost review of your situation.
