For many homeowners seeking help to stop foreclosure, refinancing their current mortgage is quickly becoming the option of choice, especially if they feel their home has enough equity in it to justify the decision. The only way this can be determined, however, is through a property appraisal. The problem with this is most home owners haven’t a clue as to their home’s real value as compared to the housing market where they live.

Don’t order a home appraisal prematurely unless you can stand the possibility of losing $300 – $500. First do some ground work to get an idea of your home’s approximate market value. Speak with a knowledgeable local realtor. Find one who has been selling homes in your area for a number of years and has a feel for the current housing market. Ask for a comparative market analysis. This will save you valuable time, not to mention money; both which you cannot afford to waste, especially if you are facing possible foreclosure.

Treat the refinancing as if you are selling the house (in essence you are, as you are buying it back). Make sure all the maintenance you can do is done; this includes clearing and trimming the yard to painting the house. Make a list of all home improvements – new windows, new floors, the finished basement, and any other item you feel has increased the value of the home. All this is necessary if you want the property to be valued as high as possible.

Keep in mind the lender is concerned with the property’s value as it relates to loan amount being requested. This is commonly referred to as LTV, or loan to value. The lower this number the more likely the lender will approve the mortgage loan. The lower percentage also allows the lender consider higher-risk borrowers, such as those with low credit scores, previous late payments in their mortgage history, high debt-to-income ratios, high loan amounts or cash-out requirements, insufficient reserves and/or no income documentation. The more you can do to improve the properties value the lower the LTV, and the higher your chances of being approved for the loan.

Once you are satisfied the numbers will work in your favor it is time to order the appraisal. Lenders normally order this using one of their own appraisers, but rest assured you will pay for it regardless of the outcome.

A home appraisal is really an opinion of the property’s market value. The home appraisal is a detailed report that looks at such items as the condition of the home, the neighborhood, what similar homes are selling for, and how quickly similar homes sell. Part of the process is a sales comparison that looks at other properties in your neighborhood and what they are selling for and then figure how they compare to your home.

And finally, don’t be caught off guard. Know what you options are if the appraisal doesn’t come in with the numbers in your favor. Be prepared to challenge the lenders appraisal with your own information. There’s a chance you can get them to reconsider, especially if the appraiser overlooked anything. If you’ve done all your homework you lessen the likelihood of squandering your time and money, neither of which you can afford to lose if you are refinancing to stop foreclosure.

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.