Whenever someone takes a loan from a private or institutional mortgage lender, that loan is secured by a property. If the homeowner fails to pay property tax, delinquent tax then becomes a lien. Property tax liens is now more important than a mortgage loan. A lender, in this situation, wants to hold his standing as the priority lien holder. The lender wants to make sure that the property tax is paid in a timely manner.
This is where real estate tax service companies come into play. A real estate tax service contract gives assurance to a lender that property taxes are paid on time as long as the loan is not paid off.
The lenders and real estate tax services companies enter in a contract. According to this contract, the company keeps the lender informed of the status of the property tax. The company tells the lender if and when the homeowner has paid property tax. The lender pays a small fee and the company provides the lender with statements about property tax payments during the life of the loan.
If the homeowner is not paying property taxes on time, he receives a delinquency letter from the company. The company sends a copy of that letter to the lender as well.
A real estate tax service contract can also include an impound account for the homeowner. This account is for making monthly insurance and property tax payments.
In case a tax payment comes due, the company will forward payment on the borrower’s behalf and notify the lender about this payment.
Change Of Title
In addition to delinquency reporting and impound services, the company also informs the lender in case the change of ownership takes place. The company generates a report and sends it to the lender. Changing ownership is an unauthorized transfer of the real estate. Change of title should be in knowledge of the lender. The lender holds the right to call the secured loan due and payable. This can be included in terms of the deed of trust.
Tax Redemption Solutions
In case homeowners have delinquent property taxes and no impound account, real estate tax service companies can help homeowners in creating repayment plans with the county. The company negotiates repayment plan terms and conditions on behalf of the borrower. Different counties have different terms and conditions. Go through the contract and see what the redemption solutions available to you are.
A real estate tax service company can provide some additional services as well. If the property is located in a flood zone, a real estate tax service company can offer flood certification.
Some companies also allow lenders to see their reports and accounts online directly.
Good companies have a good reputation in the market. Choose one of the most reliable real estate tax service companies. To make sure that you are working with the right one, check online ratings and reviews. You can also check social media profiles of the company to see what its clients have to say about its services.