Since 1979, the State of Texas has had a program that saves older homeowners from getting their houses seized because of past due property taxes.
If you qualify for the over-65 exemption, you are also eligible for tax deferrals. With property tax deferrals, you postpone the date that your taxes are due. The deferral ends upon the sale of the property or date ownership changes.
Tax deferrals are one way to protect yourself from foreclosure as you do not have a deadline to pay for taxes. Any deferred property taxes will be charged 5% interest. You can make partial payments at your convenience, and your heirs may also make payments in anticipation of inheritance.
Note that this is only a tax deferral. The tax will come due when you die or the property transfers to someone else.
Do you have the Over-65 Homestead Exemption? If you have the Over-65 Homestead Exemption you don’t have to pay property taxes till you die. You can postpone paying your property taxes. Till you’re dead.
Just ask the El Paso County Appraisal District for a Tax Deferral affidavit. Or you can find one here.
The vig is five percent a year. Inflation is currently running at three percent, so in real money, you’re only paying two percent, and you’re not even paying that till after you’re dead.
Maybe you have a financial instrument that pays better than five percent. S&P Index funds pay about 10 percent a year, in real, inflation-adjusted, dollars.* You could take your property tax money and put it in an index fund and come out ahead by the time St. Peter audits your account. If you wanted to be practical about it. And you cared. You know. Because you’ll be dead.
And you can get this tax deferral and still pay your property tax. Or you can pay part of it. Whatever you’re feeling is a charitable amount. Skip a year. Skip two years. Pay what you want to, when you want to. And then you’ll pay five percent on the balance, and that only comes through after you’re dead.
Where else can you get a deal that you don’t have to pay for till after you’re dead?
Am I missing something?
You can’t do it if you have a mortgage. The mortgage company will default your loan. Assholes.
*Past performance is not a guarantee of future results.