What Happens if you Don't Pay Property Taxes in Dallas Fort Worth?
Updated: May 18
Falling behind on property taxes can be a stressful and overwhelming experience, but it's important to know that there are options available to help you get back on track.
In the Dallas-Fort Worth area, homeowners who are struggling with property tax debt have several options to consider, ranging from payment plans to tax lien sales or selling your property.
In this blog, we'll take a look at some of the most common options for those who are behind on property taxes in Dallas-Fort Worth.
One of the most straightforward options for those who are behind on property taxes is to set up a payment plan with the Dallas County Tax Office.
A payment plan allows you to make smaller, more manageable payments over time to pay off your tax debt. The Dallas County Tax Office offers a variety of payment plan options, including monthly, bi-monthly, and quarterly payments, to help make the process as manageable as possible.
Setting up a payment plan is relatively easy and can often be done online.
However, it's important to note that there may be fees associated with setting up a payment plan, and you'll still be responsible for paying the full amount of your tax debt, plus interest, over time.
Tax Lien Sale
Another option for those who are behind on property taxes in Dallas - Fort Worth is to participate in a tax lien sale.
A tax lien sale is a public auction where the Dallas County Tax Office sells the right to collect your delinquent property taxes to the highest bidder. The winning bidder typically pays the amount of the tax debt, plus interest and fees, and then has the right to collect that amount from you, the property owner.
While a tax lien sale can be an effective way to pay off your property tax debt, it's important to understand the potential risks involved.
For example, if you're unable to repay the winning bidder, they may have the right to foreclose on your property. Additionally, participating in a tax lien sale can have a negative impact on your credit score.
Tax Sale Redemption
If you don't pay property taxes in Dallas Fort worth, your property is sold at a tax lien sale. You may have the option to redeem it within a certain time frame. Redemption is the process of paying the winning bidder the amount they paid for the tax lien, plus interest and fees, to regain control of your property.
Redemption is only available for a limited time after the tax lien sale, so it's important to act quickly if you want to exercise this option.
Property Tax Loan
If you're struggling to pay your property taxes, you may also consider taking out a property tax loan. A property tax loan is a type of loan that allows you to pay your delinquent property taxes in full and then repay the loan over time.
Property tax loans are typically offered by private lenders and are designed specifically to help homeowners pay off their property tax debt.
While property tax loans can be a useful option for those who are behind on property taxes, it's important to understand the potential risks involved.
For example, property tax loans often have high interest rates, which can make it more expensive to pay off your tax debt in the long run.
Additionally, if you're unable to repay the loan, the lender may have the right to foreclose on your property.
Sell Property Fast to Cash Buyer
Cash buyers in Dallas Fort Worth purchase properties fast and will pay off your tax debt. They will buy houses for cash and even land for cash. Selling your property may also give you the money you need to get out of debt and back on track.
We buy houses companies can help you sell your house quickly and avoid a tax lien sale. They will pay all of the closing costs, there are no commissions or fees and can usually close in 7 days.
Cash house buyers or cash land buyers will buy properties in any condition and not ask you to make any repairs. They are an easy to way to solve tax problems and get you cash.
Also read Selling Your Home to Cash Buyers - 6 Important Rules to Follow
This is the worst option and we highly recommend you avoid. Doing nothing will guarantee a complete loss of your property and nothing to show for it.
If you do nothing, your property will be sold at the Sherriff’s auction tax lien sale. These sales occur on the first Tuesday of every month in every Texas county.
In conclusion, if you're behind on property taxes in Dallas-Fort Worth, there are several options available to help you get back on track.
Whether you choose a payment plan, participate in a tax lien sale, redeem your property, take out a property tax loan, sell your property to a cash buyer, or worst of all do nothing, it's important to understand the potential risks and benefits of each option before making a decision.