Loaning money is a business; when desperate times call for desperate measures, you will find unscrupulous people out there who prey on the vulnerable. If and when you are in the position requiring financial assistance, arm yourself with a few basic requirements of your property tax lenders before signing on the dotted line.
The Big Four
- Does the Consumer Credit Commissioner by the Office of the State of Texas license them? Contact the OCCC to ask them about the company you are considering at 1-800-538-1579, or visit their web site at www.occc.state.tx.us to verify that the company is licensed. No license means NOT legal
- Do the loan officers with the company have a National Mortgage Licensing System (NMLS) license? Ask the loan officer for his or her 6-digit NMLS number. No number means unqualified and unprofessional; steer clear.
- Does the company get an A+ from the Better Business Bureau? Look them up @ www.bbb.org. Remember, even great businesses receive complaints from time to time, pay attention to how the company resolves their issues.
- Is the company a member of the Texas Property Tax Lienholders Association (TPTLA)? Their mission is to raise awareness of tax lien transfers and to promote companies who have been vetted for best ethical practice in this field.
Other Important Considerations
- Can the clear title to you property? You can’t get a loan if you don’t hold the title. Good, solid lending institutions have resources they can steer you towards for assistance in this area.
- What do their customers have to say? Ask the company for references and find out whether this is a company former clients would feel comfortable doing business with in the future.
- Do they “loan to own?” Ask the company about their foreclosure rate; you want to avoid doing business with anyone who profits from foreclosure. Seek a company that can structure a loan that can be repaid.
- Do they “service” 100% of their loans? Avoid companies that pass on payment collections to other vendors. This practice shows that the company is not interested in building a relationship with you, and will not be able to provide the kind of customer service you might need down the road.
What You Want…
- Is a company who will help you in the future- you want to know they are committed to their customers’ success
- Is a company that doesn’t do a credit check- you own property which should be sufficient credit
- Is a company that doesn’t charge an application fee- most can provide a “good faith estimate” over the phone
- Is a company that does not require a personal guarantee- you do not want your loan to show up as a personal liability of your financial statement
Source: Hunter Kelsey