LERETA, a national real estate tax and flood service provider, found that six states had higher than average delinquency rates. New York was the highest at 11.5 percent delinquencies followed by Texas at 10.9 percent, Tennessee at 9.9 percent, North Carolina at 9.3 percent, Massachusetts at 9 percent and South Carolina at 8.2 percent.
To be included in this review, a state must have at least one million parcel records available for analysis through LERETA’s proprietary property tax database. Also a delinquent review must be representative of an entire jurisdiction being analyzed. The company reviewed 59 million parcel records in 45 states with source dates ranging from October 2015 to October 2016.
“It is important to understand that unpaid taxes as depicted by these delinquency rates are subject to tax liens against a property and may result in property loss,” said Terry Cason, data modeling analyst at LERETA. “The mortgage lien is subordinate to a tax lien and places risk on the mortgage holder, typically a lender.”
The regional breakdown of this review consists of 6.5 million parcel records in the Northeast, 8 million in the Midwest, 36.5 million in the South and 8 million in the West. There were 13 states reviewed that have delinquency rates below the national average and they included: Florida, Georgia, New Jersey, Washington, Arizona, Michigan, Ohio, Minnesota, Oklahoma, Arkansas, Iowa, Maryland and Virginia.
“It is noteworthy to disclose that delinquent data is made more readily available from jurisdictions after the final installment of bill collection in that area,” Cason explained. “As such, a second analysis that will be performed at the end of the fourth quarter this year will offer additional data to compare against the baseline in this review.”
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at email@example.com.