Applying for a loan with a property tax lender can be a fast, hassle-free solution to a delinquent tax problem. Before you sign a loan agreement, make sure that you understand how this type of borrowing works. Since the tax lender will hold the tax lien on your property, you'll really want to take your time finding the right property tax lender. Making a wise choice upfront can save you potential headaches down the road. Asking the following questions can help you choose the right property tax lender:
Does the property tax lender have a solid, verifiable reputation? The first step in picking a lender is weeding out the ones you wouldn't want to put your trust in. It's always advisable to fully investigate a lender's reputation. Try the Better Business Bureau as a first place to start your investigation.
Is the lender focused on profits or service? Some property tax lenders sell their loans to a third party, or have another company collect the monthly payments. Other lenders service their own loans from the inception of the loan, to the last payment. If a lender is customer-oriented, they will work with you if you have difficulty meeting the terms of the loan, rather than immediately beginning aggressive collection tactics.
Does the lender charge any pre-approval fees? If a property tax lender charges an up-front credit check fee, or an application fee just to talk about the costs of borrowing, it should raise a red flag. Ethical property tax lenders disclose all the loan costs without obligating you financially. Additionally, make sure you work with a lender that will send you a Good Faith Estimate of all costs associated with closing the loan and ask the lender if there is any chance the costs will change. The best lenders honor their quoted closing costs.
Will the lender customize your loan? The right property tax lender should discuss your personal financial circumstances, and tailor the terms of the loan to match your budget. Their goal is for you to have a payment you can afford, so that you maintain ownership of your home, rental or business property.
Is the lender giving you candid advice about your need for a loan? The fact is that some situations don’t justify a property tax loan. If you have a small balance(less than $2,000), or you expect to pay off your balance in a month or two, a tax loan may not be in your best interest. If the loan won't save you money, a property tax lender should advise you not to borrow. A trustworthy lender will also tell you to apply for a deferral if you're over age 65 or disabled.
If you're looking for an honest, reputable lender, call Property Tax Funding at 877-776-7391, or complete our online application for a no-obligation quote.
