LERETA, a national real estate tax and flood service provider, has identified 167,112 parcels as habitually delinquent across 39 states nationwide. These findings are from the company’s most recent tax data analysis of its proprietary property tax database.
The analysis includes 575 jurisdictions with an outstanding delinquency amount of $725,488,886. The average delinquency amount per parcel is $4,341.
“Unpaid taxes as reflected by these parcel records can have serious ramifications and are subject to tax liens that may ultimately result in property loss,” said Terry Cason, data modeling analyst at LERETA. “The bottom line is, the mortgage lien is subordinate to a tax lien and places substantial risk on the mortgage holder. This is an area lenders should follow more closely.”
In order to be considered habitual, a delinquent property must have 10 or more years of unpaid taxes recorded. Additionally, a delinquent review must be representative of an entire jurisdiction being analyzed in order to be included in the company’s analysis. Data made available between October 2015 and October 2016 were reviewed.
Since 1986, LERETA has provided the mortgage and insurance industries fast, accurate and complete access to property tax data and flood hazard status information across the U.S. LERETA’s services are designed to increase efficiency, reduce penalties and liabilities and improve processes for mortgage originators and servicers.
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 firstname.lastname@example.org.