Posts Tagged ‘loans’

3 cheapest ways to pay your property taxes

Published by Research Editor on September 13th, 2015 - in Loans

1. Pay the taxes on time

Obviously, paying property taxes on time will cost the least–you’ll be charged for nothing but your property taxes. However, if that is not an option, there are two others that may work for you.

2. Payment plan with taxing unit

The Office of Consumer Credit Commissioner created a report that examined four ways to pay overdue property taxes. The cheapest way to pay overdue tax bills is by creating a payment plan with your taxing unit.

3. Property tax loan

However, many people do not qualify for a payment plan, which requires:

  • property is your residence
  • you had no installment agreements in the past 2 years

If you are overdue on property taxes for commercial property, rental property, or any other property you don’t live in, a payment plan isn’t an option.

However, the Office of Consumer Credit Commissioner found that the next cheapest option is to get a property tax loan. It costs less than putting the money on a credit card and is far, far cheaper than remaining delinquent.

Are Property Tax Lenders Financial Vampires?

Published by Research Editor on March 13th, 2015 - in Loans

Are property tax lenders (PTL) out to suck the last money from cash-strapped citizens? Are they trying to scam people and steal their houses? Or are they misunderstood?

Like vampires, werewolves, or other mythical creatures, property tax lenders are often accused of vile acts: stealing your property, attacking you with vicious fees, throttling you in the night by high interest rates, and using force. Let’s look at each of these to separate fact from fiction.

Stealing property?

Is a property tax lender secretly trying to get you to commit to a loan you can’t pay, so they can foreclose on (“steal”) your property and make money off it?

In fact, it is so unprofitable that the PTL is unlikely to foreclose at all. In 2013, out of 40,636 loans receivable by PTLs, only 103 properties were foreclosed on.

Attacking by fees and costs?

If PTLs were vampires, trying to suck all they could out of a dying victim, common sense would expect fees and costs to rise every year as PTLs tried to take more and more.

However, the reality is far different: closing costs dropped 44% from 2008 to 2014. And because of recent legislation, 12% of fees are no longer available for PTLs to charge. It is cheaper today to get a property tax loan than it was a few years ago.

Throttling with interest rates?

Well, that may be all well and good, but surely they’ve hiked up the interest rate to compensate for lower fees and closing costs, right? That’s what a vampire would do.

Put away your garlic and wooden stakes: interest rates have gone down. Recent data shows residential and commercial interest rates at 14.28%, compared to 15.46% in 2008.

That’s not all. The maximum allowed interest rate is 18%. If a PTL were sucking its victims dry, it would be charging the most it possibly could. But it’s not.

Using force?

While a vampire may try to break into your house, nobody forces a PTL on consumers. People choose property tax lenders among their many options for paying property tax loans.

In a report for the Texas Public Policy Foundation, Kathleen Hunker suggests that property tax lenders exist because they fill a need in the marketplace, a need that the government cannot fulfill with its payment options.

Misunderstood?

Low foreclosure rates; lowering fees, costs, and interest rates; and voluntary loans suggest that property tax lenders are not blood-sucking vampires, but instead are legitimate businesses seeking to work in ways that are mutually beneficial.

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Texas Property Tax Lienholders Association: encouraging honest lenders

Published by Research Editor on August 5th, 2013 - in Loans

Sometimes it feels like businesses exist to rip you off. Everything’s a scam and nobody speaks honestly anymore.

When it comes to finding a property tax loan lender, unethical behavior is unacceptable. If you’re going to trust your money to a lender, they must have integrity.

One way to encourage ethical business practices is to only work with those who have pledged to be honest. The Texas Property Tax Lienholders Association (TPTLA) requires its members to promise to conduct business honestly, honorably, and with integrity.

They also promise to keep non-public information confidential, respect your rights, and treat you fairly.

The TPTLA is a great place to look for a property tax loan lender. There are lots of predatory lenders out there; the TPTLA sort of acts as a regulatory body amongst the honest lenders.

(UPDATE: As of 8/5 the TPTLA site is down for updates, but we anticipate it coming back up soon)

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See how easily you can get financial relief

Published by Research Editor on June 17th, 2013 - in Loans

73% of Americans say that money is the top factor that affects their stress level. The stress and pain that comes with financial burdens can be overwhelming and debilitating.

 

Taking control over your financial situation will give you relief and help you move forward. One of the easiest ways to get financial relief is through a property tax loan, which lets you:

  • Stay in your house
  • Pay off the loan on your terms, not the government’s terms
  • Stop worrying about huge penalties for late property tax payments
  • Avoid serious lawsuits
  • Prevent foreclosure

8 things to look for in a property tax lender

Published by Research Editor on June 10th, 2013 - in Loans, Taxes

There are many property tax loan lenders in Texas. How do you pick the one that’s right for you? Here are 8 things to look for:

1. Quick turnaround

Usually when you need a loan, you need one as quickly as possible–the sooner you get the loan, the less interest and fees get piled up. Find a lender that promises a quick approval process.

2. No Upfront Costs and Fees

One of the benefits of a property tax loan is avoiding fees. Don’t accept a lender who will saddle you with more fees than the government would.

3. Convenient Closing

Do you have to travel across the state to sign closing papers? Or will the lender come to your home or office?

4. Online Account Information

Can you access your account information online? Is it convenient? And secure?

5. No Prepayment Penalties

If you choose to pay off your loan early, will your lender penalize you with extra fees?

6. Protecting You from Third Parties

Will your lender sell or give your private information to third parties?

7. How Foreclosure Is Handled

Foreclosure is a difficult prospect. After all, one of the reasons you want a proprety tax loan is to avoid foreclosure, isn’t it?

The problem is, if a lender promises they never foreclose, there’s a problem: if you become delinquent, the lender who never forecloses is going to sell your loan to someone else, who will foreclose on you, instead of helping you.

8. Outsourcing

Most loans you get will never be touched again by your lender. If they don’t immediately sell the loan, many hire another company to service the loans. And whoever services the loan is the company you’ll spend the most time dealing with.

So if the lender’s bedside manner or courtesy is important to you, make sure they’re not going to outsource their servicing.

 

We think we can provide you with the best property tax loan experience, but whether you choose us or someone else for your needs, choose wisely.

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Options for Delinquency

Published by Research Editor on June 3rd, 2013 - in Tax Penalties, Taxes

A new law requires property tax lenders to include this line in their ads:

“YOUR TAX OFFICE MAY OFFER DELINQUENT TAX INSTALLMENT PLANS THAT MAY BE LESS COSTLY TO YOU. YOU CAN REQUEST INFORMATION ABOUT THE AVAILABILITY OF THESE PLANS FROM THE TAX OFFICE.”

While the all-caps and bold font may seem a little excessive, it is good to remember that property tax loans are only one option among many for dealing with delinquent property taxes:

Property tax loan

Advantages: your taxes are paid, which means you avoid delinquency status, penalties, lawsuit, and foreclosure. Disadvantage: a property tax loan is a superior loan, meaning the lender can foreclose on your house if you don’t pay back your loan.

Delinquent tax installment plans

Split your payments into four smaller payments. However, this plan is not always available in every county to every citizen.

Split payments

Pay your taxes in two smaller payments instead of one giant payment. Disadvantage: the first half is paid a month early: November 30 Instead of January 1.

Tax deferral

You don’t have to pay your property taxes right now. However, this is limited to senior citizens. Your taxes accrue 8% interest each year–and you do have to pay the taxes eventually.

Borrow money from family or your savings

This could be a great option–or a horrendous option–depending on your situation. Be wise.

Refinance your mortgage to include the taxes

Establish an escrow account

Ignore it

Worst idea ever. You’ll suffer penalties, lawsuit, and foreclosure. Don’t just ignore your delinquent taxes.

 

Whatever option you choose, be wise and make an informed decision.

Texas Needs You.

Published by Research Editor on March 19th, 2013 - in Loans

TexasNeedsYouS
Texas needs you.

As a property owner, you know first-hand that home and business owners sometimes need a little extra help or a little extra time to pay their property taxes. When that happens, Tax Lien Transfers are a flexible, affordable option.

But all of that may change, unless you help right now.

Powerful collection law firms and certain banks are trying to pass legislation in Texas that would kill the Tax Lien Transfer business and take away this affordable option for you.

This is bad news for the 15,000 Texans helped by Tax Lien Transfers each year. And it’s bad news for our communities, which rely on property tax payments to provide essential services such as schools, hospitals and first responders.

Join our coalition to help Texans fight for property rights!

A group of concerned business owners, property owners and Tax Lien Transfer employees across the state have joined together to protect our rights and our property – and we need your support.

Visit www.protectmytexasproperty.org and sign up for the coalition. It takes just 30 seconds. We’ll list you as a member on the website and notify you of ways you can engage with your elected officials, if you want. The only way to fight these powerful special interests is to ban together to stop them from destroying an industry that helps people stay in their homes, keep their land and stay in business.

Thank you for helping.

Sincerely,
FYP, LLC

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Borrower Authorization Required

Published by Research Editor on July 25th, 2012 - in Loans

Before a lender will share any of your information to anyone–like your realtor or attorney–the lender must have your written consent.

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Loan Servicing

Published by Research Editor on July 25th, 2012 - in Loans

Loan servicing is the management of your loan. A loan servicer sends monthly statements, collects your payments, and follows up on default and delinquency. Basically, once you sign the loan papers, the loan servicer is the person you’ll send payments to and contact with questions.

Wait a minute, isn’t that the bank or lender’s job?

Your loan servicer is often not the same company who gave you a loan. And sometimes the servicing company is so large, you’ll never talk to the same person twice.

If your loan is sold to a servicer or someone else, you’ll receive two notices–one from your lender, one from the new servicer–with details on who the servicer is and how to contact them.

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What is the Right of Rescission?

Published by Research Editor on July 25th, 2012 - in Loans

When you refinance–or get a property tax loan–you have the right of rescission. In plain English, you have 3 days to change your mind about the loan, with no penalties and no questions asked.

This right is often called the “cooling off period,” and protects you from both yourself and from predatory lenders with high-pressure tactics. The right of rescission lets you have time to think over the loan, to be sure you really want it.

And if you find a better deal within the 3 day period, you can back out of the first and go for the better.

The right of rescission is a federal law from the Truth in Lending Act for specific situations, but each state can extend it. Texas, for example, generally grants you the right of rescission to sales made at facilities other than the seller’s place of business. See the Texas Attorney General’s site for details on other situations in which this law applies.

How to walk away from a loan

When you signed the loan, your lender should have given you a cancellation form with information on where to send your cancellation. You must mail or fax the form (or a rescission letter that states you are rescinding the transaction) within the 3 day period.

No reasons for cancelling are necessary, and it’s ok if your letter is not received or even postmarked within the 3 day period, as long as you sent it within the 3 day period. It is smart, though, to send the notice in a way that you can prove it was sent within the 3 day period, such as by certified mail.

What counts as 3 days?

The law is specific on this: 3 days is 3 business days, including Saturdays, but not federal holidays. Saturday counts as a business day even if the lender’s office is closed.

The 3 day period starts on the midnight after you sign the loan.

For example: You sign the papers on Friday. At midnight, your right of rescission begins. Day 1 is the entire 24 hour period of Saturday. Sunday doesn’t count as a business day, so day 2 is the entire 24 hour day of Monday and ends at midnight. Tuesday would be the third and final day and ends at midnight. The letter to cancel your loan needs to be put in the mailbox or fax machine before midnight on Tuesday.

Can I rescind my right of rescission?

Your loan cannot be processed until the 3 day period is over. But what if you need the loan today? There are contingencies for emergency situations, but in most situations, you must wait out the 3 days before your loan can go through.

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© 2013 FYP, LLC.