We are no stranger to the topic of real estate tax monitoring, but today we are going to dive into a whole new aspect of the subject. As you are likely aware, loans secured by real estate are somewhat complex and challenging, for lenders and consumers alike. Due in large part to regulatory changes, it can be difficult to ensure all your ducks are in a row in regards to real estate tax liens. This brings us to today’s topic - the importance of real estate tax lien monitoring.
In order for financial institutions to remain in compliance and avoid a regulatory mess, they may want to consider outsourcing their real estate tax lien monitoring service. While this can certainly be conducted internally, there are numerous benefits to outsourcing this service. Today we are going to go over some of the benefits of outsourcing real estate tax lien monitoring as well as what some of the top issues are surrounding real estate liens.
Issues Surrounding Real Estate Tax Liens
Before we get into why you should consider outsourcing this service, let’s go over some of the top issues pertaining to real estate tax liens. One of the number one things to keep in mind when it comes to lien issues is what can happen when real estate taxes are not properly regulated or monitored. When real estate tax liens fly under the radar and are not monitored, the following problems may arise:
- They can cause property issues
- They may give another party the right to foreclose
- They can reduce the proceeds and profits the institution may receive
It is absolutely imperative that a bank or credit union does what they can to avoid any of the scenarios mentioned above. When a borrower becomes delinquent or the door is left open for any problems with real estate tax liens, all parties may be affected. This leads us to our next point - the importance of outsourcing real estate tax lien monitoring services.
To Outsource or Not, That is the Question
As we’ve discussed in past blogs, there are numerous implications - for both the borrower and the lender - when a consumer becomes delinquent on their property taxes. This is perhaps the number one reason why a financial institution may want to consider outsourcing this service. Real estate tax liens are complicated and intricate documents that require highly specific tax knowledge and lots of time in order to properly manage. By making the decision to outsource this service, you will free up internal hours and resources to be directed elsewhere. Here is a brief look at a few of the benefits of outsourcing real estate tax lien monitoring:
Making the decision to outsource and work with a quality vendor on real estate tax lien monitoring will help ensure you are in compliance with all state and federal regulations. Furthermore, an outside vendor will train employees on new processes and provide you with peace of mind.
Reduce Internal Expenses
As briefly mentioned above, outsourcing real estate tax lien monitoring will allow you to reallocate staff and reduce internal expenses overall.
Many financial institutions avoiding outsourcing because they are afraid of the costs. However, making the decision to outsource real estate tax lien monitoring is far more affordable than you may think and will actually save you money in the long run.
These are just a few of the reasons why you should consider outsourcing this specific service, whether you are a large or small bank or credit union. To learn more about real estate tax lien monitoring, please download our recent whitepaper, Real Estate Tax Monitoring and Regulatory Compliance.