Someone who owes money to the authorities in the form of property taxes can often feel total despair. Usually they have gone into debt because of genuine financial problems. This means that they simply do not have the cash they need to pay their property taxes, and the penalties and interest are continuing to mount up and increase what they owe every month.
It is sometimes possible to arrange to make monthly payments with the authorities, but the amount of interest charged can be over 40%, meaning that clearing the debt in this way is not viable for some. In the meantime, the risk of losing the property to clear the amount owed still looms big.
Fortunately, there is an alternative way to borrow the money. In many states, it is possible to borrow the cash you need to pay off your outstanding property taxes from other sources. Property tax loans are designed to pay off the entire property tax debt immediately. This removes the risk of the property being lost. In addition, the interest charged on the loan is usually well below 40% and the repayment of the loan can be spread over a longer period. Spreading re-payments out makes these loans viable for more property owners. It is even possible for people with a poor credit history to borrow money in this way.