For banks and credit unions, real estate tax services are absolutely critical to whether or not a borrower pays their taxes on time, but it can challenging for lenders to stay on top of each and every mortgage customer. This is where outsourcing real estate tax services can be a viable option. By using a third-party vendor for this service, you are providing an excellent customer service while also ensuring you are in compliance regulations and so much more.
The purpose of this blog is to provide lenders with information that will help them decide whether or not outsourcing real estate tax services is the right move for them. There are numerous advantages to using a third-party vendor, many of which we will go over below.
What are Real Estate Tax Services?
Before we get into some of the advantages of turning to a third party vendor for real estate tax services, let’s define what we’re talking about. Real estate tax services, also known as real estate tax monitoring, helps lenders monitor their borrowers’ property taxes to ensure they are paid on time. Companies that focus on providing this service are knowledgeable and have the resources necessary to prevent borrowers from becoming delinquent, mitigating risks for lenders and keeping borrowers happy.
Why Outsource This Service?
In most cases, outsourcing real estate tax services is a smart move for banks and credit unions. Not only will the financial institution be able to save internal resources, but, as mentioned, it is a wonderful customer service. Let’s take a more in-depth look at some of the top reasons why you should consider outsourcing real estate tax services:
Financial institutions won’t have to maintain knowledge resources internally. When you outsource real estate tax services, the responsibility automatically shifts to the knowledgeable third-party vendor, which means you will no longer have to spend time and resources on this particular task.
It will help facilitate growth, giving you the opportunity to expand nationally. Outsourcing real estate tax services will again free up time and resources, allowing you to focus on expanding and bringing in more clients.
It will save both the borrower and the financial institution time and money. Relying on a third-party vendor for real estate tax services is beneficial for both borrower and lender in many different ways, but namely because it will save time and help borrowers by notifying them early on when they are delinquent on their real estate taxes.
A third-party vendor will now be responsible for delinquent reports. This will help out financial institutions immensely, as the important task of property tax reports will now be the responsibility of a third party.
It will mitigate risks. Finally, outsourcing real estate tax services will ensure the financial institution is in compliance with audit regulations, mitigating all risks associated with delinquent borrowers.
If you are considering outsourcing real estate tax services to a third party vendor, we encourage you to take the above points into consideration. In order for banks and credit unions to be profitable and remain in compliance with regulations, it is imperative they do everything necessary to stay risk-free and keep customers happy.
To learn more about the advantages of outsourcing real estate tax monitoring, plus how to choose the right vendor, please check out this guide: Buyer’s Guide: Choosing a Real Estate Tax Monitoring Vendor. And if you have anything to add on this subject, please feel free to use the comment section below.