Where does my money go once I pay my property taxes?
Property taxes are used to fund public services for counties and other municipalities. Without property taxes, the county would be unable to fund public schools, police and fire departments, and other government works. Therefore, tax sales to third parties and investors are a way to bridge a funding gap and lend counties money to still operate their public services.
Why do I need to track my taxes?
Tax liens will trump mortgage liens – a failure to track this could result in a loss of property. Tracking property taxes can be a red flag that indicates distress with the borrower or property owner. Most importantly monitoring property taxes is a way to manage the risk associated with real estate and ensure that your portfolio is protected.
What happens if property taxes are unpaid?
If property taxes are left unpaid in a tax lien state, the county or local municipality will auction them off to a tax buyer – creating a tax lien on the property.
If property taxes are left unpaid in a tax deed state, the county or local municipality may foreclose on the property and auction it off.
How long can I wait to pay the property taxes?
Each county and taxing authority will have a different deadline for payment, but property taxes generally begin to accumulate interest in penalties immediately after the due date, and taxes can be sold in a tax lien sale anywhere from 90 days to 2 years after the installment was originally due. NRTT’s monthly reports will provide you with the last date to pay before a delinquent tax is sold or foreclosed on.
Property taxes are escrowed with our bank, so why do we need to track them?
Property taxes should always be monitored, regardless of an escrow account. It is possible that escrow companies pay the incorrect property, or pay an incorrect amount, creating a delinquent balance that could be sold in a tax sale. In Chicago alone, 25% of properties offered in the annual Cook County Tax Sale are escrowed properties.
Can NRTT facilitate my escrow payments?
Utilizing NRTT’s Tax Payment Services, our experts can manage all taxing authority due dates and will facilitate payments on the client’s behalf for their escrowed parcels. We eliminate the stress of keeping track of multiple taxing authorities, installment due dates, and the types of payment methods allowed. We’ll notify you of upcoming due dates and the amounts of the installments in order to meet the deadline, keeping your escrowed parcel’s taxes current and up-to-date.
What’s the difference between a tax lien state and a tax deed state?
A tax lien state holds a tax lien auction where a private investor or third party can buy a tax lien certificate entitling them to have a lien against the property. These liens accumulate high interest and penalties and if left unpaid, the lien holder may take the deed to the property.
A tax deed state does not hold a tax lien sale to outside investors. Instead, the county will foreclose on the property and sell it off. Occasionally there will be states that are a combination of both.
Why NRTT?
We are a national real estate tax management company offering unique services and consultation for lenders, servicers, REITS and corporate owned assets. Our user-friendly online system allows our clients 24/7 access to their entire portfolio and reports. NRTT has the experience and know-how, along with the right tools and resources, necessary to manage property tax accounts across all property types.
Our services include Comprehensive Tax Tracking, Property Tax Search and Verification, PACE Loan Servicing, Escrow Payment Services, Owner Delinquency Notifications, Document Procurement, Appeals, Flood Services, and more. At NRTT, we can offer you what no one else can: Certainty.
