Best Way to Avoid Real Estate Fraud

Posted on December 31, 2010 by admin | Permalink 2

When engaging in various real estate transactions, the least thing you want to happen is to be entangled in fraudulent activities. Real estate fraud is everywhere and sometimes you can become a victim of such undertaking unknowingly.

Any person, who is undergoing hardships or even those who are unfamiliar with the whole real estate process, have high susceptibility to this. But even if your current situation does not make you a vulnerable victim, you still have to exert all efforts to avoid real estate fraud.

Avoiding Real Estate Fraud

There are several ways to avoid fraud. But the best way to avoid them is recognizing first hand. Being able to realize a fraudulent activity, allow you to take control of a situation before you get into bigger transactions that would involve release of big amounts of money. Examples are:

1. Receiving a title deed without any other supporting documents.

2. Signing of contracts with incomplete details.

3. A person promises easy relief from mortgage problems.

4. The person transacting with you discourages help from real estate agents or insists using their own lawyers to do the legal works.

5. Requiring upfront fees in the early parts of the transactions and constant amendment of the purchase agreement to include additional fees.

6. Involvement of a third party, who may not be known to you or even visible to the whole transaction.

These are just few instances where a transaction could be a real estate fraud. It may be hard to identify the red flags because people can be easily blinded by offers that sound too good to be true.

The next best thing to avoid real estate fraud is to educate yourself. You have to know the whole process involved in a particular transaction. If things are not clear, the next step is to seek help from various real estate professionals. You can contact a reputable real estate agent to help you with the whole process. On the other hand, if you want legal advice and if you want to fully understand the contract, try contacting a real estate lawyer. In terms of finances, call your lenders. You can try to ask them information about a particular transaction to verify its appropriateness.

You also have to do some investigating. Do not just settle for reputation. Dig deeper to know their company background and their authority to perform such business.

Bottom line is never engage in an investment just because the person involved guarantees easy money. You must not also avail of a mortgage just because it is incredibly cheap.  And when you are allowed to falsify or tamper with the required documents, you already have to think twice in pushing for transaction.

There is nothing wrong if want to engage in real estate transactions without professional help. However, you have to know your limitations. If certain deals in real estate are way beyond your knowledge, then stop and seek help.  But only seek help from those who come from a reputable company.

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Question by D GeN-X: How come that very few people who committed fraud during the real estate boom never got prosecuted?
Massive fraud were committed in the real estate industry during the boom, but very few went to jail. There were a lot of stories how real estate agents, brokers, lenders falsifies documents to get loans, etc. Overall, very few people got prosecuted and went to jail.

Best answer:

Answer by I ♥ txmuzk
yes but if they were regulated like they should have been they would have lost their license and ultimately been out of the real estate field

Give your answer to this question below!

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Do You Need Help to Stop Foreclosure Fast?

Posted on December 29, 2010 by admin | Permalink 1

If you need help to stop foreclosure, you have obviously fallen behind with your mortgage payments.  The time it takes to actually lose your home will vary and can sometimes depend on the value of your home.  If your house is way upside down, lenders will sometimes delay the foreclosure process.  If you have equity in your home they will most likely take it as soon as possible so they can sell it and get their money.

There are several options to stop foreclosure.  The most common ways involve an attorney, either through bankruptcy filings or loan modification.  Filing for bankruptcy will stop the proceedings, but it can be a temporary fix.  A loan modification, on the other hand, will be permanent as long as you continue to make your monthly payments.

If you are very close to losing your home, an attorney will be able to delay this process long enough for a loan modification to be completed.  If you have a few weeks until the sale date of your home, you may have another option.

The Obama Mortgage Plan (or HAM Program). When you put this program into action, your lender will not be able to foreclose on you for 90 days.  This gives enough time to complete the loan modification and save your home.  The great thing about the Obama mortgage plan is that is will reduce your current mortgage payments to 31% of your net monthly income.  This includes the mortgage payment, property taxes and even homeowners insurance and HOA dues if applicable.  The rates go as low as 2% and if they cannot reduce your payment to this amount with a rate reduction alone, your lender will increase the length of your loan (30 to 40 years) and may even reduce your balance.

Their are specific guidelines to qualify for this program and it might be a good idea to use an attorney for this purpose.  If you are in danger of losing your home you do not want to screw this up!  You only get one chance to modify your loan, so you want to get the best possible result.

If you would like more information on help to stop foreclosure, just visit the links below.  Be sure to visit the blog and review the guidelines to see if you qualify for the Obama mortgage plan!

Question by Steve J: im in a bind how can i stop foreclosure on my home i just need a little more time to get my business back up?
Im self employed and i just need a little more time but the bank is not understanding they keep telling me that they are going to foreclose.this has put a big burden on my wife and i relationship.also is be in business for yourself good or bad?

Best answer:

Answer by chatsplas@sbcglobal.net
Well one or both of you need to get another job and pay them at least the monthly interest payments to buy yourselves some time. Pay something every month. TALK to them.

Add your own answer in the comments!

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Obama Trys To Stop Forclosure

Posted on December 12, 2010 by admin | Permalink 3

As I’m sure many of you have heard people everyday are taking advantage of Obamas mortgage refi to stop forclosure, Well, the smart people are anyway. The rest of the population that is in over their head with their current home financing are sitting back doing nothing while they watch their home get taken away.
What will you do?
People in general have a habit of procrastinating when it comes to just about everything, right? Unfortunately, most people don’t understand exactly what’s at stake here. If they wait even 1 day too long, their home can be taken from them. Once the paperwork is filed, there isn’t anything anyone can do – Not a relative, not the government, not anyone. So, when dealing with the possibility of your home being taken, you would pretty much be an idiot not to look into obamas mortgage refi to stop forclosure immediately.
In order to qualify, generally you need to meet certain criteria:
1. You must be able to make payments once the modification has been made

2. You must have been in the home for over 1 year

3. You must stay current on your payments once an aggreement is reached
So, as you can see Obamas mortgage refi to stop forclosure program isn’t very difficult to qualify for. As a matter of fact, the success rate is high enough that if you apply you can be fairly confident that you will be helped and more importantly, your home will be saved from a certain forclosure.
At this point, you have to take a step back and decide for yourself what you will do. As I see it, you really have 2 options. You can either do nothing and watch what you have worked so hard for be taken away OR you can take advantage of Obamas mortgage refi to stop forclosure and secure the home of your dreams.
Keep in mind though, in many cases, taking action is the only thing that will keep a roof over the head of not only yourself, but your loved ones as well. So, if you have been sitting on the fence, it’s time to fall on the side of help, sooner than later.

Are you looking for a way to Stop Forclosure? If so, Click Here!
Article from articlesbase.com

www.natforeclosure.com – Foreclosure can be a scary time. Here are some tips on how to stop foreclosure. Remember that the biggest thing to remember is not to ignore the situation.

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Question by amandawilkerson2: Has anyone used an internet company to stop forclosure?
My husband had to stop working due to an injury and I am getting ready to have a baby in 6 weeks, I have seen those commercials about companies that can save your home from forclosure for up to 2 years, Has anyone ever used these or heard anything about them???

Best answer:

Answer by porcelina_68
Scam city. I got a postcard from a company and I paid them money. They did nothing for me that I couldn’t have done myself. The attorney general in my state just sued her last year.

Do yourself a favor – take the money you would have paid that company, put it in the bank, and call your mortgage company immediately. You’d be surprised how nice they are, and now much they are willing to help you.

Give your answer to this question below!

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Preparing Property Taxes for Your Home

Posted on December 10, 2010 by admin | Permalink 3

Property taxes are a substantial expense for Texas homeowners, averaging about ,600 annually. To reduce this expense, property owners should annually review and consider appealing property taxes. While there is no guarantee that an appeal will be successful, a recent survey conducted by O’Connor & Associates indicates that 70% of property tax appeals are successful.

Since the mortgage company typically disperses payments, property taxes tend to be a stealth tax. Although the homeowner writes a check, including taxes and insurance monthly, the property tax component is not evident. The property tax component can become quite evident when the homeowner is asked to fund a deficit in the escrow account.

Although 70% of property tax appeals are successful, only 7% of homeowners appeal each year. Research indicates five primary reasons homeowners do not appeal:
The process seems overwhelming and they do not know how to appeal,
They do not think an appeal is likely to be successful,
They think their home’s assessed value is below market value and there is no basis for appealing,
They do not understand they can appeal on unequal appraisal,
They are busy and do not want to set aside time, given the presumption that “you can’t fight city hall”.

Why appeal?

Consider an appeal for a 0,000 house where the property taxes are reduced by 5%. This would reduce the assessed value by ,500 and the property taxes by 5, based on a 3% tax rate. Since the typical appeal hearing takes less than an hour, these are meaningful savings for the time involved. Regularly appealing your property taxes will minimize the value, so you are assessed for less than most of your neighbors. Most of the property tax appeals are resolved at the informal hearing, which is the first step in the process.

How to appeal

The first step to appealing annually is to send a written notice to the appraisal review board (ARB) for the county in which your home is located. Even if you have not received a notice of assessed value from the appraisal district, file a notice of appeal by May 31st for the following reasons:
The notice of assessed value can get lost in the mail,
A notice of assessed value is not necessary unless your assessed value increases by more than ,000, and
You should appeal annually
You can file a notice of appeal by utilizing the Comptroller’s form available at www.cutmytaxes.com or by sending a letter to the ARB. The letter to the ARB simply needs to identify the property being appealed and the basis for your appeal. You should always appeal on both market value and unequal appraisal. Since the appraisal district staff is extremely busy during late May and early June, sending any data on the value of your property tax is probably a waste of time. At the same time you send your notice of appeal to the ARB, send a “House Bill 201″ request to the chief appraiser at the appraisal district. The House Bill 201 request will provide you a volume of information at a modest price.

Reasons for obtaining House Bill 201 information

Since most homeowners are not familiar with House Bill 201, you may be wondering what it is and when it became available. House Bill 201 is the term used by property tax consultants and appraisal district staff to describe provision 41.461 of the Texas Property Tax Code. This section reads as follows:

“at least 14 days before hearing on a protest, the chief appraiser shall: … inform the property owner that the owner or the agent of the owner may inspect and may obtain a copy of the data, schedules, formulas, and all other information the chief appraiser plans to introduce at the hearing to establish any matter at issue.”

The property tax code further provides the chief appraiser the right to charge up to for each residence, and up to for each commercial property owner for this information. However, there are limits on the cost per page an appraisal district can charge. Practically speaking, the maximum charge is to for a residence. In Harris County, most homeowners can print this information from the appraisal district’s web site once an appeal has been filed using the “I file” system.

This section of the tax code was added in 1991, but many appraisal districts have attempted to ignore this section of the property tax code for years and some still do. After discussing this section of the Texas Property Tax Code on a radio show in 2005, several listeners called back a week or two later to report certain appraisal districts were claiming to be unaware of this section. When O’Connor & Associates sent House Bill 201 requests to appraisal districts in 2005, some called us and said “what do you mean you want our information, we plan to use your information at the hearing to prove our value.” While these examples seem quaint and cute, it is surprising that 15 years after taxpayer friendly legislation has been passed, that appraisal districts are still ignoring property owners and tax consultants who ask for this information.

There are at least seven reasons to utilize House Bill 201 to obtain the information the appraisal district will use at the hearing:
It is an effective way to obtain information regarding both market value and unequal appraisal for your property tax appeal,
You will receive the appraisal district’s information regarding the size, condition and other qualitative and quantitative data for your house,
The information can be obtained for a nominal cost,
It is helpful to know what information your adversary will be able to use at the hearing,
Making the request limits what information the appraisal district can present at the hearing. If you do not request their information prior to the hearing, they can use any information available to them at the hearing. However, if you request the appraisal district information using a House Bill 201 request, they may only use information previously provided to you,
If they do not provide you information on market value or unequal appraisal in the House Bill 201 request, you win by default at the ARB hearing, and
In many cases, the appraisal district House Bill 201 information clearly supports a lower value.
Preparing for the hearing

When you receive the appraisal district House Bill 201 information, start by reviewing the appraisal district’s description of your home and ask yourself these questions:
Is the year built accurate?
Are the qualities and amenities accurate?
If the appraisal district overstates either the quantity or quality of improvements to your property, this is an excellent means to reduce your property taxes both for the current year and subsequent years.

Filing a 2525c Appeal

If the appraisal district has overstated the size of your house by more than 5% to 10%, even if you did not file a property tax appeal in prior years, you should consider filing a 2525c appeal. This will allow you to reduce the assessed value of your property for the current year and for prior years.

Let O’Connor & Associates reduce your Florida property tax . Oconnor & Associates can represent you at the California property tax.

Patrick C. O’Connor has been president of O’Connor & Associates since 1983 and is a recipient of the prestigious MAI designation from the Appraisal Institute. He is also an registered senior property tax consultant in the state of Texas and has written numerous articles in state and national publications on reducing property taxes. He continues to set the standard in direction and quality of our appraisal products, adding services ranging from business valuations and business appraisals to cost segregation analysis for income tax reduction.

http://www.poconnor.com


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Question by pink!: Property taxes?
im wondering is there a way i can pay my property taxes month by month or every three months instead of all in november

by the way im new at this my parents just passed down a property to me “quit claim deed”

please help me! icon surprised Preparing Property Taxes for Your Home ) thanks
thank you all for answering big help!

Best answer:

Answer by sometimes
I’m sure you can, just call the clerks office and make those arrangements with them.

Add your own answer in the comments!

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Real Estate Fraud Getting You Down?

Posted on December 7, 2010 by admin | Permalink 4

Real estate fraud is one of the fastest growing issues in the industry. With more than 75 percent of fraud caused by real estate professionals, people within the business need to address and fix the problem. Instead of sitting back and watching fraud continue, now is the time to take action.

How Real Estate Fraud Is Affecting The Housing Market

The housing market is in trouble partly due to the amount of fraud committed by real estate professionals over the last few years. Unfortunately, scammers have not stopped. In fact, their activity has increased in an attempt to cash in while homes keep flooding the market. This sustained fraud not only causes economic difficulties, but it also creates mistrust with real estate professionals and a ruined reputation among the industry as a whole.

Understanding Types Of Real Estate Fraud

Lenders have been more active in the past few years, but this activity has become a breeding ground for fraudulent activity. Real estate fraud experts deliberately set up scams in order to hold all parties accountable, tracing nothing back to them. Some professionals allow others to set up a loan, despite knowing they cannot afford the payments later, thereby promoting ethical wrongdoings that encourage a dishonest atmosphere.

Many mortgage loans do not need significant amounts of verification like a borrower’s income, so these lenders end up caught in mortgage fraud. Swindlers come to homeowners with the solution of helping them pay off their mortgage, but then refinancing it through a series of other loans and earning a profit without ever paying the broker.

What You Can Do To Stop Real Estate Fraud

Part of stopping this immeasurable fraud is educating yourself and others on how to spot the signs. Learn about which frauds are most common and teach your clients in order to save them from a financial crisis in the future.

For example, a house that soars in price and immediately sells after being on the market for several months is suspicious. Talk to the manager of the title company if you think something is wrong at the closing, explaining your doubts and ask to speak to the lender.

Moreover, real estate professionals need to start taking responsibility for their actions. This includes disregarding the actions of fellow colleagues. Fraud is bad for everyone, including your business, so the longer you allow it to go on, the more you hurt. Show some integrity and stay away from questionable transactions in addition to reporting incidents of fraud.

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Article from articlesbase.com

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Question by Jenn: Does Oregon have any pro bono lawyers willing to take on real estate fraud, we need help!?
My dad bought a home from a RE agent who owned the home for 10 yrs. and lied on all the disclosers now we’ve found major problems and need to get these fixed!

Best answer:

Answer by Brandie C
idk i never lived in oregon

Add your own answer in the comments!

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Estate Sales Do’s And Don’ts

Posted on December 6, 2010 by admin | Permalink 1

Executors faced with having an estate sale in Roanoke and Southwestern Virginia immediately discover that selling the contents of a house is their most time-consuming administrative task.  Executors who don’t perform their assignment could be removed from office by the Probate Judge, so it is important that they diligently pursue disposing of the estate’s property so that the bills can be paid and the estate settled.

What youll get from this article

Executors in Southwestern Virginia and Roanoke have three main liquidation options, and I will discuss the pros and cons of each in this article.  Any company chosen to liquidate an estate should be checked out; I will tell you how to do this thoroughly, and I will also make my recommendation for the best liquidation method.  I assume that the twin liquidation goals of the Executor are to get the best monetary return for the estate and to leave the house broom-clean so that it can be sold.  Of course, there are ways to maximize the cash return for each type of sale, and I’ll tell you what they are.  Investing ten minutes into reading this article could save an Executor many hours of work.

Option 1:  Have An Auction On-Site

Benefits of an On-Site Auction:

There are a lot of Auctioneers in Southwestern Virginia.  Auctions are “big” in the South and Midwest, the biggest auction states are Virginia, North Carolina, Texas, and Indiana. Auctioneers in Roanoke and Southwestern Virginia are very competitive.  It should be an easy job for an executor to find an auction company willing to take the job, and commissions will be competitive.  A strong argument for an on-site estate auction is that when the auction is over, there will be very little clean-up.  If you like, the real estate can be auctioned as well, since Virginia auctioneers are licensed to auction the real estate and other titled property. In one day, the house, car, boat, RV, and all the household goods could be sold.

Negatives for an On-Site Auction:

Auctions are driven by competitive bidding.  Consequently, it is necessary to have a lot of people at your auction.  Big crowds require nice weather, plenty of parking, bathrooms, food, and refreshments to keep the people from leaving.  Online bidding can be included to boost attendance, but it is the local crowd that builds excitement and drives the prices up. To attract a crowd, the estate must have collectibles and other quality goods.  Run-of-the-mill goods that can be purchased at the local thrift store are insufficient to attract a good auction crowd.

Suggestions for an On-Site Auction:

If your estate has many large collectibles, like antique furniture or a piano, an on-site auction may be your best choice.  Summer weekends, when the weather is warm and dry, are the best times to hold an on-site estate auction.  The auction company you hire should be equipped with sound equipment, canopy tents, display tables, and plenty of help for fast checkout.

Option 2: Auction Gallery Consignment

Pros for Auction Gallery Consignment

If weather is a concern, you may want to consider consigning your items to an Auction Gallery.  Consignments at an Auction Gallery are grouped according to the type of item in order to maximize turnout and get the best prices from their collectors.  For example, there may be an auction dedicated to art and home decor, or musical instruments, or ceramics.

Cons for Auction Gallery Consignment

There are quite a few reasons for not consigning to an Auction Gallery.  For starters, many Auction Galleries will take only the best items from the estate.  Ninety percent of an estate is made up of items that are of little interest to the auctioneer, which leaves the Executor to deal with the remaining ninety percent of the estate property.  Lastly, when an Auction Gallery spreads the merchandise out over several auctions, it can take months for all the items to sell, delaying the closing of the estate.

Tips for Auction Gallery Consignment

Before you consign to an Auction Gallery, ask the auctioneer how your merchandise will be distributed between auctions; get a guranteed settlement date.  You will also need a plan for disposing of all the remaining estate merchandise.

Option 3: Tag Sale On-Site

Pros for Tag Sale On-Site

Tag sales have several advantages over an on-site auction.  For those that are not familiar with tag sales, the sale is held on the premises and in the house.   Companies that specialize in tag sales are less common than auction companies.  At a tag sale, everything in the house is priced, much like at a yard sale.  Shoppers will browse through the house, and choose the items they wish to buy.  When buyers arrive at the house, they take a number, and are admitted into the house when their number is called.  Tag sales usually start on Friday evening and end Sunday evening, so there is no need to provide food or bathroom facilities.  Tag sales can be held rain or shine and in any season.

Cons for Tag Sale On-Site

The biggest disadvantage in hiring a tag sale company is that tag sale companies are not held to the same legal standards to which auction companies are held.  Auctioneers and Realtors are bound by law to the estate by a fiduciary bond.  A fiduciary relationship binds the agent by law to act at all times in the best interest of the estate.  Fiduciaries are licensed by the state, must pass tests, be bonded, must hold all funds in an escrow account until distributed, and has to settle the account with the estate within a specific time frame.

Fiduciaries must also keep accurate records and follow certain protocols.  Failure of a fiduciary to follow procedures can result in fines or loss of license.  Tag sale companies are not held to the same legal standards, although they certainly have a moral obligation to the estate.  Tag sale companies can handle the details of the sale and the distribution of the money any way they see fit.

Another problem with tag sales is that typically there is merchandise left over after the sale. Often, there is a LOT of merchandise left over.  When a lot of items are left over, the executor then has a clean-out problem, because the house must be left “broom-clean” before a realtor will list the house for sale.  Unlike an auction, where prices go up with each bid, tag sale shoppers want to negotiate a lower price for everything, which is not only time consuming but costs the estate money.

Tips for Tag Sale On-Site

When working with a tag sale company, read the contract thoroughly, make sure settlement dealines are included.  The operator should have a solid pricing plan, adequate staff, and a solid track record.

What about Internet Sales and Retail consignment?

Internet sales work well for items that can be shipped easily, like small collectibles, books, and artwork.  Before you decide to sell these items online, remember that having a nice assortment of collectibles at your auction or tag sale is what will attract the buyers to your event.  If you sell all the good collectibles online, you won’t get very good attendance at your sale.  Dont even consider a retail consignment; they will take too long to sell your items.

How do I know if I am dealing with a reputable company?

Unfortunately, asking for references doesn’t always work; no one gives a bad reference. The Better Business Bureau lists ratings for some, but not all, companies.  With a Virginia auction company, go online to the Department of Professional and Occupation Regulation (DPOR) at http://www.dpor.virginia.gov/dporweb/dpormainwelcome.cfm   . On the main menu, go to License Lookup; there you will be able to check the license status and complaint history of the auction company.

Checking up on a tag sale company is a lot harder, because there is no agency keeping track of complaints.  One website that is helpful is http://www.ripoffreport.com.  When at the site search the name of the company you wish to investigate; also type in the owners name to see what that brings up.

Hire a company with a solid internet presence

These days, it is imperative for a company to have an online network. A company that is well-connected in the online world is likely to be a company that is well-networked in the local area. It’s unlikely that a company with a poor or no website will be able to use the internet to generate sales for your event.  Doing a Google search of the company’s name or web address is the best way to to see how well connected they are.  Go to Googles search bar (not the address bar at the top of the page, but the search bar in the center of the page) and type in the companys web address starting with www.  How many search results are returned that pertain directly to the company you are investigating?.

If the company is a national franchise, disregard the results for the general franchise and only count the results where the local company is mentioned.  Ranking well with the search engines doesn’t necessarily mean the company will be the best one for your needs, but it is a good indicator of the professionalism of the company.  Typically, companies have lots of returned results because other organizations want to associate with experts in their field, so they link to the experts website. A large number of linking companies is like a “vote” for the company being linked to.  A company that displays lots of Google results is usually one that is recognized as being expert in their field.

So, what’s the best way to liquidate an estate?

The best type of sale for estate liquidation is to hire a licensed fiduciary to sell the estate property in one day, to the bare walls, any time of year.  To achieve this would require an event that is part tag sale and part auction, run by an auctioneer.  Since Tag Sale operators are generally not licensed auctioneers and auctioneers usually hate to do tag sales, that’s a tough solution to implement.   There are auctioneers that combine these services, however. Finding such a company will give an executor the flexibility of having a sale any time of year, the ability to sell down to the bare walls with nothing left over, and the assurance of dealing with a state licensed and bonded fiduciary.

 

Wayne Jordan is a Virginia licensed auctioneer, certified personal property appraiser, and accredited business broker. He specializes in the valuation and liquidation of estate and business assets.


Article from articlesbase.com

Cheryl Wheeler’s Estate Sale is a favorite in all circles. What a great job Joanne Gardner did putting this “event” onto film. Nothing short of brilliant.
Video Rating: 4 / 5

Related Estate Sales Articles
Question by yola_racing: Estate sales?
My grandfather resently passed away & I’m curious as to what if anything my family needs in order to hold an estate sale. My father is the executor & has been over seeing my grandfathers finances grandpa became sick & my grandmother was ill herself & later passed. The family has picked out a few things here & there but sadly most of the stuff will be sold probably with the house & I was just wondering what if anything was need legally to do it since we have no receipts bills of sales or anything like that for the furiture & stuff. Is my dad being executor enough?

Best answer:

Answer by David M
If there is no dispute in your family, you can hold an estate sale at any time and the proceeds become assets of the estate. If your father has been appointed executor be a court in probate proceedings, without challenge, he can dispose of any assets in any way he sees fit. With an estate sale, you are just exchanging “stuff” for cash.
It’s possible there is no legal issue here at all. Your father has a duty to file an inventory of the estate assets at the close of probate, so list the money received from the sale as an asset. It would be prudent not to sell any item that a family member wants, but your father has complete authority to do whatever he feels best if he has been appointed executor by the Court. If not, you should do nothing until he is appointed.

What do you think? Answer below!

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Appealing Property Taxes On Apartments?

Posted on December 4, 2010 by admin | Permalink 2

Property taxes are one of the largest line item costs incurred by apartment owners. However, many owners do not appeal effectively. Even though owners realize that property taxes can be managed and reduced through an appeal, some view taxes as an arbitrary estimate provided by the government which can’t effectively be appealed. It tends to boil down to the old adage, “You can’t fight city hall”.


Fortunately, the property tax appeal process in Texas provides owners multiple opportunities to appeal. Handled either directly by the owner or by a property tax consultant, this process should involve an intense effort to annually appeal and minimize property taxes. Reducing the largest line item expense has a significant effect in reducing the owner’s overall operating expenses. While it is not possible to entirely escape the burden of paying property taxes, it is possible to reduce taxes sharply, often by 25% to 50%.


Why some owners don’t appeal


Some property owners don’t appeal because they either don’t understand the process, or don’t understand that there is a good probability of achieving meaningful reductions in property taxes. Some owners believe that since the market value of their property exceeds the assessed value, then it is not possible to appeal and reduce the property taxes. Although appeals on unequal appraisal are relatively new, there is a clear-cut way to appeal property taxes at the administrative hearing level based on unequal appraisal. Unequal appraisal occurs when property is assessed inconsistently with neighboring properties or comparable properties. Also, some owners are reluctant to hire a property tax consultant, even though many consultants will work on a contingent fee basis, in which there is no cost to the owner unless property taxes for the current year are reduced.


Overview of appeal process


The following are the primary steps in the annual process for appealing property taxes:


· Request notice of accessed value

· File an appeal

· Prepare for hearing

. Review records

. Review market value appeal

. Review unequal appraisal appeal

· Set negotiating perimeters

· Administrative hearings

· Decide whether binding arbitration or judicial appeals are warranted

· Pay taxes timely


Requesting a notice of assessed value


Property owners have the option of requesting a notice of assessed value for their property annually. Section 25.19g of the Texas Property Tax Code provides the owner the option to request a written notice of the assessed value from the chief appraiser. Owners benefit from requesting and receiving a written notice of assessed value for each property because it ensures they have an opportunity to review the assessed value. This notice should be sent on an annual basis. The appraisal district does not have to send a notice of assessed value if the value increases by less than ,000. However, if an owner was not satisfied with a prior year’s value and the value remained the same, the appraisal district probably will not send a notice of the assessed value for the current year. In this situation, the owner might forget to protest since a notice of assessed value for the property was not received.


How to file and appeal


On or before May 31st of each year, the property owner should file an appeal for each property. However, while many owners are comfortable with an assessed value, in many cases there is a basis for appealing. Two options for appealing include:



unequal appraisal, and
market value based on data the appraisal district provides to the owner before the hearing.

You can appeal by completing the protest form provided by the appraisal district and indicating both excessive value (market value) and unequal appraisal as the basis for appeal. In addition, the property owner can simply send a notice that identifies the property, and indicates dissatisfaction with some determination of the appraisal office. The notice does not need to be on an official form, although the comptroller does provide a form for the convenience of property owners. (You can access the protest form at www.cutmytaxes.com .)


House Bill 201 – helpful information


House Bill 201 is the industry jargon for a property owner’s option to request information the appraisal district will use at the hearing, and to receive a copy 14 days before the hearing. The name House Bill 201 is derived from the bill used to enact the law. The details for House Bill 201 are located in sections 41.461 and 41.67d of the Texas Property Tax Code. When filing a protest, the property owner should additionally request in writing that the appraisal district provide a copy of any information the appraisal district plans to introduce at the hearing. The appraisal district will typically require the property owner to come to the appraisal district office to pick up the information and charge a nominal fee, typically .10 per page. While the cost for House Bill 201 requests are quite low (typically .50 to .00 per property for residential and commercial) the information is invaluable in preparing for the hearing. In addition, filing a House Bill 201 request is important because it limits the information the appraisal district can present at the hearing to what was provided to the property owner two weeks before the hearing.


Preparing for the Hearing


Start by reviewing the appraisal district’s information for your property for accuracy. If the appraisal district overstates either the quality or quantity of improvements, this will justify a deduction. The next step is to review the information on market value and unequal appraisal provided by the appraisal district in the House Bill 201 package. If the subject property is an income property, review the appraisal district’s income analysis versus your actual income and expense statements. Consider the following areas as opportunities to rebut the appraisal district’s analysis:


· Gross potential income

· Vacancy rate

· Total effective gross income, including other income

· Operating expenses

· Amount of replacement reserves

· Net operating income

· Capitalization rate

· Final market value


Many property owners and consultants start with the actual income and expense data, and use one or two of the assumptions provided by the appraisal district. However, they primarily utilize information from the actual income and expenses in preparing their own income analysis and estimate of market value for the subject property.


When comparable sales are the primary issue in determining market value, start by reviewing the comparable sales data provided by the appraisal district versus the assessed value for your property. Convert the sales prices from the appraisal district to either a per square foot or per unit basis. Then compare the sales to the per square foot or per unit assessment for your property. Sales can be helpful during the hearing.


The cost approach is not typically used in the property tax hearings except for brand new or relatively new properties. If your property is new, the appraisal district will probably want to review the cost information and you probably won’t want to show it to them. In many cases, the actual cost of a property is higher than the estimate provided by the appraisal district. If this is the case, you will likely want to appeal on unequal appraisal instead of on market value. No matter how good your argument or how passionately it is expressed, the appraisal district staff and Appraisal Review Board (ARB) members tend to believe that cost equals value for new properties.


Deferred Maintenance and Functional Obsolescence


Another issue that is important for the market value appeal, and to some extent for a unequal appraisal appeal, is information on deferred maintenance and functional obsolescence. Deferred maintenance could include items such as:


· rotten wood

· peeling paint

· roof replacement

· substantial repair

· landscaping updating and other similar items


Most appraisal districts give minimal consideration to requests for adjustments based on deferred maintenance, unless the property owner provides repair costs from independent contractors. There are some exceptions where a cooperative informal appraiser or sympathetic ARB will take an owner’s estimate of deferred maintenance and make adjustments based on those costs. Most appraisers and ARB members are much more inclined to make adjustments if third-party cost estimates are provided. In addition, the appraisers and many ARB members are inclined to only deduct a portion of the total cost using the argument, “we’ve been giving a replacement reserve allowance for this item for the past years and it’d be double-dipping to deduct the whole value off it in the current year.” While this is an incorrect appraisal argument, it does tend to be the practice at many appraisal districts. The reality is, the cost of curing deferred maintenance is deducted from the offer by a prospective buyer.


Examples of functional obsolescence would be a three-bedroom apartment unit that only has one bathroom, or a two-bedroom apartment that does not have washer/dryer connections in an area where those connections are common. Another example would be an apartment that has a window air conditioner in an area where central HVAC is typical and expected.


Unequal appraisal analysis


The Texas Property Tax Code, section 41.43(b)(3), provides for appraising or appealing on unequal appraisal including ratio studies and “a reasonable number of comparable properties appropriately adjusted.” Virtually all unequal appraisal appeals involve a reasonable number of comparables that are appropriately adjusted. Comparables are similar properties.


This is primarily because of the difficulty and cost of performing a ratio study. Historically, the position of many appraisal districts was that the property owner needed to get a fee appraisal for each comparable property and compare the market value estimated by the appraiser to the assessed value. The cost of getting multiple appraisals made this process financially impractical. Compiling a reasonable number of comparables appropriately adjusted is simple and straightforward. The first step is to choose a reasonable number of comparables. Usually four to five comparables is the typical number used at a property tax hearing, but in some cases, property owners choose ten to thirty. In some cases, there may only be one to four comparable properties that merit consideration. Most unequal appraisal presentations include three to ten comparables. The number of reasonable comparables depends on the location, type, size and age of the property. For example, there would be fewer five-year-old bowling alleys in the northern part of Harris County compared to recently built apartment complexes.


After choosing a reasonable number of comparables, array them in a table format, including fields of data such as account number, net rentable area, year built, street address, assessed value and assessed value per square foot.


The next step is to determine whether or not to make appropriate adjustments. For the administrative hearing, if you have truly comparable properties, most boards (appraisal review board or ARB) won’t be concerned with you not making adjustments. If you make adjustments, those would typically be based on factors such as differences in size and age compared to the subject property.


You should also review the information in the appraisal district’s House Bill 201 packet on an unequal appraisal. In many cases, the appraisal districts unequal appraisal analysis will document a reduction in your assessed value! If the appraisal districts unequal appraisal analysis documents a reduction, either the informal appraiser or the ARB should make the adjustment in assessed value for you. Having the opportunity to get an assessed value reduced automatically based on the appraisal districts unequal appraisal analysis is one of the reasons to appeal every property every year.


Completing Hearing Preparation


After reviewing the appraisal district’s information on your property, the House Bill 201 package, and your market value and unequal appraisal analyses, determine the strengths and weaknesses of each approach and decide which basis of appeal provides the best opportunity for a meaningful reduction. Although appeals on unequal appraisal have clearly been the law of the land since 2003, some appraisal districts and review boards have chosen to disregard the option for unequal appraisal put forth by the Texas Legislature. Although there is litigation underway which should resolve this issue within the next year, it would be prudent to visit someone who is knowledgeable in local property tax appeals to determine whether the county appraisal district and ARB in your area are considering appeals on unequal appraisal.


Set Negotiating Perimeters


After reviewing the information, it is important to set the highest level of assessed value you will accept at the informal hearing because after you accept an assessed value, the appeal process will be complete for the year and you will not be able to appeal further.


Administrative Hearing Process


The two steps to the administrative hearing process are the informal hearing and the appraisal review board hearing.


The Informal Hearing


The following procedure and rules are typical at the informal hearing:


· Meet with an appraiser representing the appraisal district. You should be polite and prepared at this meeting. While many property owners are frustrated and angry at the high level of real estate taxes, the appraisal district appraiser does not control the tax rate set by various entities nor the policy regarding property taxes in the area or the state. The appraisal district appraiser is trying to execute his job in a professional manner and appreciates it when property owners work with him on that basis.


· Provide the appraiser information on your property and he will review that information and information he has available.


· The appraiser will likely make an offer to settle the assessed value of your property fairly quickly. You can either accept the value or negotiate further. Either way, you should know within ten to twenty minutes whether the appraiser will offer an acceptable value. If the value is acceptable, conclude the negotiation by agreeing to the value for the current year. If the value offered is not acceptable, ask to go forward with an ARB hearing.


Appraisal Review Board Hearing (ARB)


The ARB hearing panel consists of three impartial citizens selected and paid by the appraisal district. The age of most ARB members ranges from fifty to eighty. There is an unfortunate bias in the system since the ARB members are selected and paid by the appraisal district, but most ARB members are reasonable people who want to make appropriate decisions.


Like the appraisal district appraiser, the ARB does not set tax rates or tax policy. The members are also not responsible for the effectiveness of local government. It is unlikely to help your case if you complain to the ARB members about either the high level of property taxes or the poor quality of some aspect of local government.


The ARB will expect you to make your presentation in about three to ten minutes. They will typically wait patiently while you make your presentation and may have questions after you conclude. An appraiser from the appraisal district, who may or may not be the same person who attended the informal hearing, will represent the appraisal district at the ARB hearing. The appraiser will comment on the evidence you presented and will often present other information the appraisal district has available. If you requested a House Bill 201 package for your property, it substantially limits the evidence the appraisal district appraiser can offer at the hearing. The ARB members may have questions after the appraisers presentation. Then the property owner will be given a final opportunity to rebut evidence presented by the appraisal district appraiser and quickly summarize the evidence. The ARB members strongly prefer you not repeat your entire presentation at this point.


After hearing the evidence, the ARB members will confer and make a decision. This decision is not subject to negotiation and they will not revise the decision if further evidence is presented. When this decision is announced, the hearing is effectively over. The ARB will send a letter two to four weeks later summarizing their decision and notifying the owner of a 45 day limitation from the date receipt of the ARB decision to either request binding arbitration or file a judicial appeal.


Binding Arbitration or Judicial Appeal


Beginning September 2005, owners of properties with an assessed value of million or less may file a request for binding arbitration. The owner must file with the appraisal district no more than 45 days after receipt of the notice of the ARB’s decision. The binding arbitration option is interesting because it includes a loser pays provision. The appraisal district pays for the arbitrator’s fee if the final value is closer to the owner’s opinion of value, and the owner pays for the binding arbitration if the final decision is closer to the appraisal district’s opinion of value. Binding arbitration was passed to provide an alternative to judicial appeals, which can be expensive to prosecute.


Many owners pursue judicial appeals to further reduce property taxes. In 2005, O’Connor & Associates filed over 1,200 judicial appeals on behalf of property owners in the state of Texas. The judicial appeals can be expensive if the property owner and attorney don’t understand the process and have a plan in place to minimize the cost of legal and expert witness fees. Judicial appeals are typically successful. However, success requires cooperation from the property owner, such as providing responses to questions, documents and a deposition if requested. The judicial appeal is meaningful as an option to minimize property taxes since it reduces the base value. This is important because the appraisal district and ARB consider the base value in the subsequent year when setting the administrative hearing value.


Conclusion


Property owners can generate substantial reductions in property taxes by appealing annually. Consider appeals on both market value and unequal appraisal and obtain the House Bill 201 information when preparing for the appeal hearing. Property owners should consider all three levels of appeal: informal hearing, ARB hearing and judicial appeal/binding arbitration. While the ARB hearing and judicial appeal/binding arbitration can be an intimidating process, each is straightforward once you understand the mechanics.

Patrick O’Connor, a designated member of the Appraisal Institute, is president of O’Connor & Associates. The firm, in business since 1974, specializes in real estate appraisals, research, and state and federal tax reduction services nationwide. For more information on reducing your taxes visit http://www.cutmyfederaltaxes.com


Article from articlesbase.com

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Question by classy48292: Property Taxes?
I have some property in Clyde,Park montana and I forgot to pay my first half property taxes.So I owe first half and second half is not due until may I plan to send in full payment on Monday as I live out of state.On my statement it says warning this property is the subject of a tax sale.I need to know if anyone knows how many years you can be delinquent in the state of montana on your property taxes before it goes up for tax sale or where I can find information on montana property tax laws.I have always paid my property taxes on time this is the first time I have been late. I need to know some info so I do not have to worry about this all weekend.

Best answer:

Answer by connemara
What? I think you need a tax attorney.

What do you think? Answer below!

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Commercial Property Taxes in Texas

Posted on December 2, 2010 by admin | Permalink 0

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.

Jason Keller has extensive experience in real estate valuation and property tax assessment. Mr. Keller is the Director of Property Tax Services within the Private Lending Group at Resolution Finance, LLC.


Article from articlesbase.com

As many as 60 percent of us pay TOO MUCH on our property taxes.
Video Rating: 4 / 5

Question by nitric_9111: property taxes?
I have a debate tommorow and what are some cons for property taxes?
My topic is “Property taxes are unfair” and I’m on the Pro side…any ideas?

Best answer:

Answer by muncie birder
there are some problems with property taxes. 1. is that property taxes are used to finance school systems. In certain cases property owner, namely retired people, do not benefit from school systems. Would it not be more equitable if the people using the school system paid for it?
Some property taxes do directly benefit property owners, such as police and fire production. In that event, property taxes are fare.

What do you think? Answer below!

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Evaluate Your Real Estate Fraud Case With An Attorney

Posted on December 2, 2010 by admin | Permalink 0
38775782 bcd59a6a9d m Evaluate Your Real Estate Fraud Case With An Attorney
by dbking

Real estate fraud attorneys must constantly evaluate real estate fraud lawsuits based only on the information they receive from their potential clients.  Potential clients, who are trying to convince the attorney of the merit in their lawsuit and not necessarily understanding the elements of a fraud case, do not always share all of the pertinent details with the attorney.  Both real estate lawyers and their potential clients must understand what information is important in a real estate fraud case and how to evaluate the strength or weaknesses of a real estate lawsuit.  Here are tips for a potential real estate fraud plaintiff and the real estate attorneys who must evaluate the case.

Honesty is paramount in real estate litigation.  Even if a potential client is successful in hiding information from his or her lawyer during the initial consultation, that evidence will eventually surface during the litigation.  The attorney can evaluate the case better if he or she knows all of the evidence from the very beginning.  Sometimes bad evidence can be successfully dealt with to lessen its impact if the client discloses it right away.  If the evidence does not surface until half way through the plaintiff’s deposition, the attorney has almost no ability to control the damage.

Conversely, the real estate fraud lawyer should ask questions in the first client meeting that touch on each of the elements of a fraud cause of action.  Was there an actual misrepresentation or active concealment of some material fact?  Did the client know that the information was false at the time?  Was the other party intending to defraud the client?  Did the client justifiably rely on the misrepresentation?

One of the most common weaknesses in a real estate fraud lawsuit is whether the client knew that the other party was concealing information or making a misrepresentation.  If the client knew the information was false or already knew the concealed information from some other source, the client (and his attorney) will not be able to argue that the client reasonably relied on the misrepresentation.

For example, in a fraud lawsuit premised on the purchase of a shopping center, a plaintiff may claim that he was told that all of the units were rented, the tenants were operating their businesses and all tenants were paying rent.  Even though a document such as a rent roll may make this claim and look like the foundation for a meritorious fraud lawsuit, the evidence may show that the unit had already been vacated with a “Going Out Of Business” sign on the door when plaintiff did a site inspection of the shopping center.  In other words, the client will have seen that the unit had been vacated and was going out of business.  He would therefore not be able to rely on a representation that all units were occupied and all tenants were paying rent.

In other examples, a seller may have concealed material information from the client when selling the shopping center.  However, another party in the transaction—a tenant, a real estate broker, a property manager—may testify that he or she had a long discussion with the client about the status of the tenants, the operating problems at the property, the boundary dispute with the neighboring landowner or whatever the concealed information is.  A potential client may correctly tell his attorney that the seller failed to tell him that information without understanding the significance of the fact that he learned that information from another source before the close of escrow on the property.  The fact that the seller may have failed to reveal the information may, in that case, be morally wrong but, if the client knew the information from another source, a real estate fraud lawsuit will fail.  It is true that the client was lied to but he would not be able to establish that he was unaware of the falsity of the information.

Real estate fraud attorneys must also delve into whether the potential client was damaged or not.  While a person may breach a contract or commit fraud, it does not necessarily follow that the victim is injured by the fraud.  Using the example from above, suppose the seller of a shopping center represents that a tenant is paying rent when in fact that tenant has vacated the property is not paying rent.  Now suppose that the client’s industrious real estate broker procures a tenant during escrow and that tenant takes occupancy on the first day of the client’s ownership.  Yes, the seller lied about the vacancy problem but the client was not injured—a new tenant was found and started paying rent from day one.

There are many ways that a real estate fraud lawsuit can unravel during litigation.  The best way for real estate fraud attorneys and potential clients to avoid this is to be honest in their exchange of information, to go through the elements for a fraud lawsuit, and for both the lawyer and the client to understand what evidence will make or break the case from the very beginning.  While this advice applies to all real estate litigation, it is particularly important in real estate fraud litigation

Laine T. Wagenseller is a Los Angeles real estate fraud attorney.   He is the founder of Wagenseller Law Firm, a Los Angeles real estate fraud law firm.  For more information on real estate fraud and real estate litigation in Los Angeles and Southern California, please contact Mr. Wagenseller at (213) 996-8338 or visit wagensellerlaw.com


Article from articlesbase.com

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Question by casey: Is there some kind of rental/real estate fraud going on here?
Friends moved out of town. Listed the house they left behind for rent. Big mistake listing it on craigslist. They are also listing it with a realtor. They have been getting calls from prospective renters claiming it is listed for half what they actually posted. There were also conversations the prospective renters are having with some unknown individual and some sort of bogus rental papers floating around. Is someone trying to scam them? Is someone trying to move in under false pretenses and squat? Who should they call?

Best answer:

Answer by Mike
I recommend that they contact an attorney who specializes in Real Estate Law.

What do you think? Answer below!

Real Estate Fraud , , , , , ,

Do You Understand Commercial Credit Reporting?

Posted on December 1, 2010 by admin | Permalink 1

Commercial credit reporting is the compilation and reporting of the credit histories of commercial enterprises. While most people are familiar with consumer credit reports, many are unaware that a similar reporting system exists to assess risk in extending loans to businesses, underwriting insurance risk, purchasing or investing in businesses, and shipping goods to businesses on credit.

Every country in the world has commercial credit reporting agencies, which allow foreign exporters to asses the risk in shipping goods to a wholesaler in that country. Governments also use commercial credit to regulate businesses and collect taxes.

The information age has changed the gathering of commercial risk information. Before telephones and the Internet, the only way to gather risk information on a business was to visit the business owner in person. Credit reporters would ask business owners for the names of the companies that supplied them on credit terms, what banks they dealt with, how many workers they employed, and so on. It took days, even weeks, to fulfill a request for a commercial credit report.

This time-consuming process is no longer necessary. Credit Report Australia can now be compiled in seconds, without a business-owners knowledge. Suppliers are now asked to supply commercial credit-reporting agencies with frequent trial balance downloads on all their accounts receivable.

These trade-payment experiences are linked in order to show how a business pays its suppliers. Collection agencies share this information with credit-reporting agencies.

Publicly available information bankruptcy filings, lawsuits, lease registrations, and judgments, for example is also gathered. As this flood of information accumulates over a period of years, trends become apparent, making it possible to track a business cash flow.

Companies that are frequently unable to pay their suppliers are quickly identified. Computerized monitoring systems tell suppliers when to restrict credit to unhealthy businesses. These comprehensive, detailed reports are reduced to two-digit scores that enable automated credit approvals and rejections.

Commercial credit is more volatile than consumer credit. Few businesses remain unchanged five years after their founding; all businesses face constant competition for clients and markets. And the granting of credit by businesses is very much market-driven. Retailers buy goods on credit in the hope that they will be able to sell them at a profit before being required to pay for them.

Retailers who are required to pay for their inventories in cash on delivery due to their inability to obtain credit from suppliers are at a serious competitive disadvantage. Most businesses, unlike consumers, are oblivious to the risk-reports being compiled on them, and may never discover why they are unable to obtain credit from their suppliers.

The strict laws that govern consumer credit-reporting agencies rarely cover commercial ones. Despite this lack of oversight, complaints about the accuracy or completeness of information in a commercial credit report can potentially harm an agency’s reputation, so they do take complaints seriously.

Global Credit Solutions Australia (www.gcsaustralia.com) is recognized as a leading supplier of global commercial credit reports.

Global Credit Solutions (GCS) is one of the world’s largest credit management specialists. GCS is dedicated to being the Global leader in the development and provision of Credit Management & Risk Management Services. For more information visit www.gcsaustralia.com
Article from articlesbase.com

Question by animal_mother: Credit Reports?
I viewed my free credit report online from Experian. I know I can still request a free credit report from the other 2 companies this year also (TransUnion and Equifax), but would prefer to space them out throughout the year to view changes and updates. My question is will there be a difference in the reports? I know the 3 may give me a different credit score, but will all my accounts with the amounts I owe be consistent? Thanks.

Best answer:

Answer by mike j
YES a big difference some collection agencies only report to one or two of them!
You have to look at all three at one time ….

Add your own answer in the comments!
Arrowhead Credit Union to close 8 branches, lay off 37 employees
Arrowhead Credit Union will close eight branches and lay off 37 employees by the end of the year in an effort to improve its bottom line, the San Bernardino-based institution said
Read more on Redlands Daily Facts

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