Blackhillsams » COMMERCIAL

Texas Property Tax Loans ? A Solution For Delinquent Residential & Commercial Property Taxe

Admin — Thu, 12 Aug 2010 12:56:31 +0000

While the recent recession and economic crisis have made it difficult to secure many types of loans, Texas property tax loans stand out as an exception. Texas continues to report some of the highest property tax rates in the country and with real estate values holding up well in this state, there has been little tax relief for property owners. Given the high rates and the ever present challenges in the economy, property owners should know that delinquencies can be addressed with a property tax loan before penalties, interest, and possible foreclosure by the county.

With the economic crisis worsening, property tax lenders expect a record number of borrowers in the months ahead. If you are interested in a solution for your delinquent property taxes, these frequently asked questions may assist your search.

Q: What is a property tax loan and how can it help me?

A: Property taxes are due in a lump sum by January 31st. The amount of tax due increases every month thereafter until the taxes are paid. A tax loan consolidates the delinquent taxes, accrued penalties, interest, and any legal fees owned on the property into a loan with affordable monthly payments. The taxing authority´s existing lien is transferred to the property tax lender as security for the loan.

Q: What type of property will qualify for a Property Tax Funding loan?

A: Loans are available for almost any type of real estate as long as the borrower is not in bankruptcy, there is no IRS lien on the property, and the property is reasonably maintained. This includes residential, commercial, investment properties, and vacant land.

Q: What if I’ve had past credit problems?

A: Credit history is typically not an issue, except in cases of current bankruptcy. Loans are approved for most applicants, even those with not so perfect credit. All loans are subject to income verification

Q: How long does the loan process take?

A: From the time the application is completed the closing can occur in less than a week. Applications can be taken online or over the phone. Loan closings are typically handled with a mobile notary that comes to a location convenient to the borrower.

Q: How much money can be saved by avoiding interest and penalties on a delinquent property tax bill?

A: Penalties and interest are set by state legislature and begin to accrue on February 1st. While county rates vary, you can expect penalties, interest, attorney fees and court costs of 37% to 44% per year. It´s easy to see how a property tax loan can save thousands in penalties and interest, while more importantly, avoiding foreclosure and lawsuits by the taxing authorities.

Q: What are some considerations when choosing a property tax lender?

A: In addition to choosing a lender with years of experience and specialization in property tax lending, only work with a lender who is licensed by the state of Texas. You can validate if the property tax lender is licensed to make property tax loans in Texas with the Office of Consumer Credit Commissioner. http://www.occc.state.tx.us/pages/searches.html

You can also learn more about Texas property tax loans by contacting Property Tax Funding at http://www.propertytaxfunding.com/ or calling a loan officer at 877-776-7391.

Commercial Finance Funding Help And Working Capital Advice

Admin — Mon, 26 Apr 2010 04:47:55 +0000

There have been some disappointing and unexpected actions taken by commercial lenders in response to recent financial events. This changing environment for business finance funding is likely to produce several new problems for commercial borrowers. To assist small business owners in their efforts to keep up with these imposing challenges, The Working Capital Journal is one of several commercial financing information resources which should be reviewed regularly. The working capital finance industry has primarily been operating on a regional and local basis for many years. In response to cost-cutting that has permeated many industries, there has been a consolidation that has resulted in fewer effective commercial lenders throughout the United States. Most business owners have been understandably confused about what this might mean for the future of their commercial financing efforts, especially because this has happened in a relatively short period of time. Of course, for some time there have been ongoing complex problems for commercial borrowers to avoid when seeking commercial loans. But what has produced a new set of business finance funding problems is that we appear to be entering a period which will be characterized by even more uncertainties in the economy. Previous rules and standards for commercial financing and working capital finance are likely to increasingly change quickly, with little advance notice by business lenders. Business owners should make an extended effort to understand what is happening and what to do about it due to this realization that substantial changes are likely throughout the United States in the near future for commercial finance funding. At the forefront of these efforts should be a review of what actions commercial lenders have already taken in recent months. The Working Capital Journal is one prominent example of a free public resource that will facilitate a better understanding of the responses by business lenders to recent economic circumstances. By publicizing actions taken by commercial lenders, this will contribute to these two goals, both of which are likely to be helpful to typical business owners: (1) To highlight controversial bank-lender tactics with a view toward reducing or eliminating questionable lending practices. (2) To help business owners prepare for commercial finance funding changes. Sources that currently include The Working Capital Journal are actively encouraging business owners to describe and report their financing experiences so that they can be shared with a broader audience to assist in this effort. Some of the most significant commercial financing changes reported so far by commercial borrowers involve working capital loans, commercial construction financing and credit card financing. A notable situation of concern is that predatory lending practices by credit card issuers have been reported by many business owners. Some specific businesses such as restaurants are having an especially difficult time in surviving recently because they have been excluded from obtaining any new business financing by many banks. One of the few recent bright spots in business finance funding, as noted in The Working Capital Journal, has been the continuing ability of business owners to obtain working capital quickly by business cash advance programs. For most businesses accepting credit cards, this commercial financing approach should be actively considered. Business cash advances are literally saving the day for many small business owners because most banks appear to be doing a terrible job of providing commercial loans and other working capital finance help in the midst of recent financial and economic uncertainties. For example, as noted above, restaurants are virtually unable to currently obtain commercial finance funding from most banks. However, if a restaurant accepts credit cards in their business operations, they are likely to be able to obtain needed cash from merchant cash advances and credit card factoring.

Payment of Residential and Commercial Property Taxes in Texas

Admin — Tue, 16 Feb 2010 09:15:45 +0000

April 19, 2009

http://www.propertytaxfunding.com/

Property Tax Payment

Taxing units usually mail their tax bills in October. The date of delinquency is normally February 1st. If you have not received your tax bill by January 1st, you should contact your tax assessor to determine the amount owed.

Property tax bills often include more than one taxing jurisdiction because some taxing jurisdictions combine their collection operations. Likewise, certain properties will be subject to multiple taxing jurisdictions collected by different assessors. Contact the central appraisal district for your respective county to determine the taxing jurisdictions which apply to your property. Many county central appraisal districts now post their property tax data online.

If you escrow taxes and insurance, then your mortgage company will pay the property taxes on your home. You should receive a receipt from the tax assessor indicating payment has been made. The receipt is important to retain, as many homeowners deduct property taxes for federal income tax purposes.

When Is the Deadline for Payment?

In most cases, the deadline for paying your property taxes is January 31. Taxes that remain unpaid on February 1 are considered delinquent. Penalty and interest charges are added to the original amount.

Taxes are due in one lump sum. Some tax collection offices provide payment options, such as:

Payment by credit card, typically with additional fees of 3% to 5% Deferment or installment plans for taxes on homestead properties for disabled property owners or property owners over 65 years of age Discounts for early payment Partial payment of your taxes

If you are qualified for the over-65 or disabled homestead exemptions, you may pay your current taxes on your home in four installments. You must pay at least one-fourth of your taxes before the February 1 delinquency date. The remaining payments are due before April 1, June 1 and August 1, without any penalty or interest. If you miss an installment payment, you will face a penalty and also pay interest at 1 percent for each month of delinquency. You must indicate on your first payment that you are paying your home taxes in installments. Installment payments apply to all taxing units on the tax bill.

Homeowners whose residences are damaged in a disaster and are located in a designated disaster area also may pay their taxes in four installments, in the same months as over-65 or disabled homeowners.

What If my Taxes are Delinquent?

The longer you allow your delinquent property taxes to go unpaid, the more expensive and risky it becomes for you.

Penalty and interest charges will be added to your taxes.
Penalty charges and interest charges will be added to your tax balance. Private attorneys hired by taxing units to collect delinquent accounts can charge an additional penalty to cover their fees. The following table details the potential penalties, interest, and attorney charges imposed on a delinquent property tax account.

Month Penalties & Interest
February        7%
March            9%
April              11%
May             13%
June             15%
July               32% to 37%*

*Collection Attorney Fees Vary by County, but are typically 15% to 20%.

Accounts not paid in full by June 30th of the year in which they become delinquent are normally referred to the delinquent tax attorneys for collection and incur an additional penalty equal to 15% – 20% of the total taxes, penalties and interest due. Generally, any payment on the quarterly payment plan that is not paid before the delinquency date of the installment accrues a full penalty of 6% immediately, and begins to accrue interest at the rate of 1% per month until paid.

You will receive delinquent tax notices.
The tax collector will send you at least one notice that your taxes are delinquent. They often send multiple notices and warnings. You may have the option to set up an installment plan.
Some tax collectors will allow you to pay delinquent taxes in installments for up to 36 months. They are not required to offer this option. You may be sued.
The tax collector can take a delinquent taxpayer to court. All court costs will be added to the delinquent tax bill. Your property may be foreclosed upon. You could lose your property!
Each taxing unit holds a tax lien on each item of taxable property. A tax lien automatically attaches to property on January 1 each year to secure payment of all taxes. This tax lien gives the courts the power to foreclose on the lien and seize the property. The property then will be auctioned and the proceeds used to pay the taxes.

Are there other options available to pay property taxes?

Yes, specialized lenders exist who focus solely on property tax lending. These lenders provide an alternative to the lump sum payment of your property taxes. A property tax loan will immediately stop the added penalties, interest, attorney fees, and pending lawsuits for the county. Most lenders offer flexible loan terms with repayment schedules up to 10 years. Loans are available for almost any type of real estate as long as the borrower is not in bankruptcy, there is no IRS lien on the property, and the property is reasonably maintained. This includes residential, commercial, investment properties, and vacant land.

To learn more about property tax loans and the lending programs available visit Property Tax Funding, http://www.propertytaxfunding.com/, or call a loan officer at 877-776-7391.

LEVY OF SERVICE TAX ON EXTERNAL COMMERCIAL BORROWINGS FROM FOREIGN BRANCH OF AN INDIAN BANK

Admin — Sat, 06 Feb 2010 08:15:02 +0000

1. Service tax authorities, of late, have been issuing notices to various borrowers of External Commercial Borrowings (ECB’s) from foreign branches of Indian banks and holding them liable to pay Service tax from September 10, 2004 under section 65(12)(a)(ix) of the Finance Act, 1994 which covers ECBs.

According to the borrower, the responsibility of paying service tax is of the service provider which is the foreign branch of the Indian bank and, hence, the Indian bank having a permanent establishment in India, is supposed to pay and not the borrower.

The contention of the service tax authorities is partially correct after coming into effect of section 66A of the Finance Act, 1994 from April 18, 2006.

Until the coming into effect of section 66A, the liability and obligation to pay service tax was that of Indian bank and not that of the borrower. Contrary to the contention of the service tax authorities, even under rule 2(1)(d)(iv) of the said Rules, effective from August 16, 2002 and June 16, 2005 respectively, the borrower cannot be made liable for the payment of service tax.

2. Rule 2(1)(d)(iv) reads as follows :—

‘Person liable for paying the service tax’ means,—

(iv) in relation to any taxable service provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India, and such service provider does not have any office in India, the person who receives such service and has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence, in India.”

From the aforesaid provisions, it would be clear that until April 18, 2006, the requirement under rule 2(1)(d)(iv) was that only in case where the service provider did not have any office in India, the person receiving taxable service was liable for paying service tax involved. In the cited case, the Indian Bank having its registered and head office in India, and a branch in a foreign country cannot be said to be a service provider who did not have an office in India.

After coming into effect of section 66A, rule 2(1)(d)(iv), substituted with effect from April 18, 2006 by the Service Tax (Second Amendment) Rules, 2006, reads as follows :—

“‘Person liable for paying the service tax’ means -

(iv) in relation to any taxable service provided or to be provided by any person from a country other than India and received by any person in India under section 66A of the Act, the recipient of such service;”

As such, until April 17, 2006, the borrower was not a ‘person liable for paying service tax’ within the meaning of the Act and the said Rules, including rule 2(1)(d)(iv) thereof.

It is relevant to note herein that the phrase ‘does not have any office in India’, in rule 2(1)(d)(iv), stands omitted from the substituted rule. As such, with effect from April 18, 2006, in any case where the taxable service is provided or is to be provided by either a person who has established a business in a country other than India or has a fixed establishment from which the service is provided or is to be provided in a country other than India or has his permanent place or usual place of residence in a country other than India, the service recipient in India would be treated as if it has itself provided the service in India and, accordingly, it would be liable to pay the service tax and comply with all procedural and other requirements as specified in the Act and the said Rules. The respective clauses in section 66A (1) (a) are disjunctive and, hence, once any of the three alternatives contained therein are satisfied, the service recipient becomes liable to pay service tax on the taxable service involved.

Applying the aforesaid provision, since the service is being provided by foreign branch of an Indian Bank, the condition precedent laid down in section 66A(1)(a) is satisfied and, in the absence of the phrase ‘does not have any office in India’ in rule 2(1)(d)(iv), as recipient of the services, the borrowers would be liable to make payment of the service tax payable on the ‘Banking and Other Financial Services’.

3. The fees paid or to be paid are liable to service tax under ‘Banking and Other Financial Services’ under the Act with effect from September 10, 2004. The liability to pay service tax for the period prior to April 18, 2006 would be that of Indian Bank and on and from April 18, 2006, would be that of the borrowers.

Why I Love Commercial Financing!

Admin — Sat, 29 Aug 2009 22:12:41 +0000

Whenever one invests in real estate the most important thing that they have to look for are the finances. Any real estate property be it apartment or other requires huge amounts of money and hence the need of apartment financing. The choice of a particular financing option largely affects the investment outcomes and hence one must tread cautiously in the matter of apartment financing. There are many financing options that one can go for in apartment financing such as banks and private lenders. There are also some prerequisites that one can consider before going in for apartment financing. The traditional methods of apartment financing do not allow much flexibility but with the growth of private lenders there is much flexibility which one can consider in apartment financing.

Apartment Financing Options

Before considering the different financing options one must make sure how long one is going to hold the property and whether the investment is long term or short term because this has important implications in the choice of finance one can get. When one is considering owning the apartment for a short period then one can surely go in for the adjustable rate mortgage or the ARM for short. The ARM apartment financing option offers an interest rate that changes with the index. The initial interest rate in the ARM is more competitive than other apartment financing options. Interest rate fluctuations in the future impact the finances and hence the ARM is important in this regard. Also the maximum interest rate also works as protection for those who hold the mortgage. For those wanting to remain long in the business there is the fixed rate mortgage apartment financing. The rate of interest for the borrowers in this apartment financing remains the same for the whole period of the mortgage and hence it offers the borrowers cost effective apartment finance.

When one goes for the fixed interest rate apartment financing when the interest rates are low all the advantage is for the borrowers since they qualify for the same interest rate until all the loan is repaid. The opposite happens when the interest rates are higher in the market. First time investors must also look for the value of the apartment because it affects the type of finance they will receive. Generally higher the value of the apartment the best interest rates will be got from direct lenders or investment companies. However when the value of the property is smaller one can consider the financing options from ones local banks.

Apartment financing from smaller banks or direct lenders is another important option that one can consider in apartment financing because they offer flexible apartment loans as compared with other reputed banks and lenders. One can have finances like non-recourse as well as partial-recourse loans from the small banks and the direct lenders who are always on the look out for borrowers. In the event of non-repayment of the amount the traditional lenders can claim the property and recover their loan while in the conventional loan the lender cannot claim the apartment for which finance is given but they can claim the property that has been mortgaged as the security for their finances.

Find out more at Learn Apartment Financing