Last week we started to discuss why outsourcing real estate tax services is a good idea and how the right vendor can help with the Due Diligence process. With that in mind, today we would like to look at how working with a real estate tax services vendor can help you avoid delinquencies. Delinquencies are a major problem for many institutions and borrowers. It is unfortunately easy for a borrower to get behind on their real estate tax payments, and it can be difficult for an institution to keep up with all their loans, which could create a snowball effect. This is where the right vendor can come in. By outsourcing real estate tax services to a third party vendor, you can help your borrowers avoid delinquencies early on.
There is something to be said for planning ahead, especially in regards to real estate tax services. Whether you are already under contract with another vendor who just isn’t getting the job done, or you are weighing the benefits of outsourcing real estate tax services, there are a few important considerations. First and foremost, the right vendor can go a long way in helping to streamline your internal processes, keep borrowers on the right payment schedule, and avoid delinquencies and compliance violations.
How Planning Ahead Can Help You Avoid Delinquencies
Whether you are a small or large bank or credit union, it’s safe to say you want to do everything you can to make sure you meet all deadlines and help your borrowers avoid becoming delinquent on their tax payments. One of the best ways to do this is by planning ahead and finding a dedicated and knowledgeable real estate tax services vendor that can help manage your loan portfolios, escrow payments, and borrowers.
It is worth mentioning there are certain times that are better than others to start working with a real estate tax services vendor. We recommend not rushing into a solution and instead taking your time to meet with potential vendors to see what kind of services they offer. One of the best times to meet with a vendor and make an informed, educated decision about their real estate tax services is roughly four months prior to or shortly after the main tax season. This will give the vendor ample time to compile and provide you with all the information you need. It is imperative that you do your best to start working with a vendor well in advance of when escrow payments are due, as this can be a stressful time of year and can result in missed or late payments.
It is no secret that delinquencies are a major issue - for lenders and borrowers alike. Thankfully, the right real estate tax services vendor can help you avoid delinquencies, especially if you plan ahead and start meeting with vendors early on. To learn more about the benefits of outsourcing real estate tax services to a vendor or to discuss your specific needs, please schedule a consultation with Info-Pro today.