But these property tax loans carry high fees and interest rates as high as 18 percent, and families who use them risk losing their home if they default on even a small loan. Despite the improvements, the loans remain risky because any tax lien for back taxes is transferred to the lender, meaning a homeowner who defaults on a tax loan could suddenly face foreclosure. In his October report, Baylor compared the cost of a property tax loan to using a credit card to pay a $5,000 tax bill. The industry sought higher fees, but Mary Doggett said the approved fees will cover costs associated with the loans, such as property appraisals, tax records retrieval and title searches. Read More