We have spent a lot of time discussing some of the top issues associated with property tax services, specifically in regards to delinquent borrowers. One of the reasons this is such a hot topic is because of the implications for institutions when a borrower becomes delinquent on their real estate property taxes. Banks and credit unions have numerous everyday operations that are essential to their overall productivity and profitability, including real estate tax monitoring and escrow processing. Both of these services, for example, require attention on a daily basis. When the ball is dropped, so to speak, in either of these areas by a lender or their staff, the institution may experience serious repercussions. This is the main reason why all institutions—both big and small—should consider outsourcing property tax services.
As a refresher, some of the top reasons why property tax services should be outsourced to an experienced and quality third-party vendor include:
- Decrease internal expenses
- Provide peace of mind to the lender
- Take pressure off the financial institution
- Boost profitability
- Save time and reallocate resources
- Mitigate risk
As you can see, outsourcing property tax services can benefit an institution in numerous ways. Today we are going to look at how a vendor can help make sure an institution is following proper guidelines as well as what you should look for in a vendor when outsourcing this specific service.
Using a Vendor to Adhere to Proper Guidelines
One of the advantages of outsourcing property tax services is the vendor will be able to provide guidance and direction when it comes to meeting certain regulations. Vendors offer invaluable insight and direction when it comes to federal regulations, which can mean the difference between compliance and delinquency. One thing that should be kept in mind when outsourcing property tax services to a third-party vendor is that the institution will remain responsible for the vendor. This simply means that the bank or credit union will need to adjust their internal processes to include due diligence and monitor the vendor. However, a good vendor should be able to provide you with real-time reports, information, and more on all property tax borrowers.
With this in mind, it is of the utmost importance that you look for a property tax vendor that has a good grasp on all federal regulations, including those associated with audits. Property tax monitoring vendors should offer highly customizable services, real-time reports, and exceptional customer service. When shopping for a vendor, it is important to look for these characteristics. In doing so, you will be setting yourself up for a far more successful experience with your vendor.
Outsourcing important internal services such as real estate tax monitoring can go a long way in increasing your profits and boosting your revenue overall. However, it is important that you take the time to focus on finding a vendor that will go above and beyond. To learn more about how a third-party vendor can help you comply with real estate tax monitoring regulations and more, please download our recent whitepaper, Real Estate Tax Monitoring and Regulatory Compliance.
