Over the last several weeks we have been discussing not only how outsourcing real estate tax services can benefit your institution and your borrower, but how it can work to streamline your internal processes. As we learned last week, this is especially true if you plan ahead and don’t jump into a partnership with a vendor on a whim. There are many different vendors out there, some of which offer the same type of services, typically a “one size fits all” approach. This is why it is important to start looking for a vendor well before you are in desperate need, to find the best vendor for your institution’s needs.
It is important that real estate tax services are properly monitored, as delinquencies can cause quite the headache for lenders, as well as compliance violations. Thankfully, a third party real estate tax services vendor can help ensure your loan portfolios remain in compliance and that your borrowers do not accidentally go delinquent.
Why Plan Ahead?
It is common for financial institutions who are considering outsourcing real estate tax services to say “let’s talk in a few months” and put the notion of outsourcing on the backburner. However, doing so could prove to be detrimental to the institution. If you are hoping to start outsourcing real estate tax monitoring by next tax season, you need to start looking at vendors several months beforehand. As we mentioned last week, it is recommended that institutions begin working with a real estate tax services vendor about four months prior to the high peak of tax season or shortly after. In doing so, you will ensure your vendor has ample time to collect all the information and documents they need in order to adequately monitor your loan portfolios and real estate taxes.
The Due Diligence process is not a simple one, as you probably know. A good real estate tax services vendor can ensure no steps are skipped in the process and that all your borrowers are able to make their payments on time, which will in turn help with the internal operations of your institution. Planning ahead is a must, as there are numerous considerations when it comes to outsourcing.
To learn more about what some of the qualities are that you should look for in a vendor, or how your specific institution can benefit from outsourcing real estate tax services, please contact Info-Pro today and set up a consultation.