Property tax refers to the fee that is paid by property owners with real property. Real property encompasses items such as land, buildings, and homes. It may also refer to tangible property, usually large ones such as automobiles and boats.
If the owner of the property fails to pay his or her taxes, the government is at will to levy a tax lien on the said property. A tax lien is, in basic terms, a way for the government to recover any unpaid taxes from the sale of a foreclosed property.
Although the government has the authority to foreclose on any delinquent tax property, it is by no means a guarantee that one’s property can get foreclosed. There are ways in which a property owner can keep their property while still fulfilling their tax obligations.
This is called property tax loaning. In this post, we share the nitty-gritties of choosing the Texas property loan provider. Read on to learn more about what you should consider when selecting a property tax loan provider.
What You Should Look For In a Property Loan Provider
1. Repayment Terms
As a loan borrower, one of the first things you need to inquire about is the terms of repayment. Although the terms differ from one lender to another, a reputable loan provider should provide you with the exact terms of the property loan. These terms should include the repayment period, the penalties, if any, and if there is a grace period for any missed or delayed payments.
2. Interest Rates
Borrowers are usually mindful of the interest rates. When acquiring any loan, you should know how expensive or lenient the interest rate is. Before settling on one Texas property loan provider, you should first compare their interest rates with those of other firms. Determining a firm’s interest rates before getting a property loan can help you decide whether it is a good idea for your overdue property tax.
3. Additional Fees And Charges
Before getting a loan, a borrower needs to find out if other additional fees are charged to the loan besides the interest rate. An example of an additional fee is the application fee. A borrower should inquire whether the firm charges an application fee before considering you for their loan.
In most cases, lenders typically offer free loan approvals and free estimates, which help borrowers to fully evaluate their financial position before taking out that property loan.
4. Is The Lender A Servicer Or An Originator
In some cases, some money lenders usually sell their loans to various institutions such as banks to make extra money. Before agreeing to the terms of the property loan, a borrower should first inquire whether the firm services its loans or originates it.
By finding this out, a borrower typically cushions themselves from the confusion that comes from having to write checks monthly to different entities. This information, however, isn’t meant to make borrowers shy off of obtaining loans.
It is meant to inform them that while they may have gotten the loan from one property loan provider, they shouldn’t be surprised if they have to write a check out to a different institution.
5. Organizational Practices
Every borrower should at least take a look at the lender’s business customs. The first practice that should not be overlooked should be is the firm’s licensing. The property loan provider should be licensed by the Texas Office of Consumer Credit Commissioner.
A licensed lender should maintain a minimum level of ethics, capitalization, and professionalism to ensure the business’s reputability in its lending practices. A borrower should also do their due diligence on the firm to determine whether there have been any complaints levied on them.
Another factor should be the willingness of the loan provider to tailor their product to every individual. No two people are in the same situation; therefore, one loan isn’t entirely applicable to two different individuals. A suitable lender typically creates a relationship between them and their clients for the latter’s success.
The last factor is whether the loan provider is a member of the Texas Property Tax Lienholders Association. This organization comprises of the lenders in Texas. If the loan provider is a registered member, it shows how serious they are about their business. It also proves how sufficient they are at providing the service to their clients.
At NYC Criminal Lawyers, we have your interest at heart. If you’d like to consult on the way forward for your Texas property loan, you can get in touch with us for expert advice.