Reverse Mortgages in Texas is just one more way for seniors to be on the losing end of what is being touted as a great way to get the money you need and still stay in your house.
While you do accomplish the goal of receiving funds from the escrow in your home as a senior, there is one major downside to obtaining a reverse mortgage in Texas and that is that you “lose” your deferred tax benefit and all your past due taxes will become due.
If Texas seniors are not aware that they are entitled to deferring “all” of their taxes at the age of 65 and older, please contact your local Appraisal District and obtained a “Tax Deferral Affidavit Over-65 Homestead or Disabled Homeowner” form, which clearly states on its face that “if you are a homeowner age 65 or over or disabled, you can defer, or postpone, paying delinquent property taxes on your homestead for as long as you own it and live in it. To postpone your tax payments, file a tax deferral affidavit with your appraisal district. The deferral applies to delinquent property taxes for all of the taxing units that tax your home.”
The form also clearly states, “You should be aware that a tax deferral only postpones payments. It does not cancel them. Interest will be added at the rate of 8% annually. Once you no longer own your home or live in it, all the taxes, penalties, and interest become due after 180 days and the taxing units may proceed with a lawsuit to collect delinquent taxes if the taxes remain unpaid.”
The form also clearly states, “NOTE: You are required to give us a driver’s license, personal I.D. certificate, or social security number on this form, in order to perform tax related functions for this office. The chief appraiser is required to keep the information confidential and not open to the public inspection, except to appraisal office employees who appraise property and as authorized by Section 11.48(b), Tax Code.”
Therefore, please be aware, Texas Senior Citizens, you will lose your deferred tax status and that is something not being disclosed to you.
I do not have a high opinion of reverse mortgages. I personally believe it is just another way to quietly steal someone’s homestead without them being aware of the theft so be careful, be wise and remember, Texas is not a consumer state.
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