Welcome to part one of our three-part borrower experience series.
Rising property taxes often trigger borrower panic and spike call volumes. In this first installment, we explore how proactive technology—including automated SMS, personalized IVR, and real-time dashboards—transforms tax season confusion into lasting trust. Discover how getting ahead of borrower questions with the right tech stack reduces operational strain and turns a stressful season into a trust-building opportunity.
Homeowners are feeling the squeeze of escalating property taxes. When property taxes rise, confusion often follows.
Picture this scenario. A family opens their mail and finds a property tax bill. Their mortgage servicer handles their escrow account, so they wonder why they received a bill. Surprised and worried, they call their mortgage company for answers.
This scenario plays out millions of times every tax season. Property taxes have risen 28.5% over the past five years, making property tax volatility the new norm. Tax communications are often inconsistent, confusing, or reactive. Servicers can turn these moments of confusion into clarity and loyalty. The key is using technology to answer the homeowner's question before they even have to ask.
This proactive approach prevents confusion before it starts and makes property taxes easier to understand. Here is a look at three technologies that help servicers build lasting customer loyalty at scale.
Automated SMS notifications
Homeowners with an escrow account often get confused when they receive a tax bill. They may not realize their servicer is paying it on their behalf. Outbound SMS notifications allow servicers to push proactive, loan-specific updates to borrowers. You can reach them at the intervals that matter most.
- When a tax bill is received
- When a deadline is approaching
- When a payment is confirmed
The right text message at the right moment provides peace of mind and eliminates the need for a phone call.
Our DigitalTax® Connect delivers real-time tax data through API-based integrations.
- Tens of thousands of homeowners proactively opted in to receive property tax-related SMS updates in 2025.
- 52% of borrower calls were resolved without a live agent through self-service tools.
- Over 57,000 properties avoided overpayment of taxes recently using our technology.
Personalized IVR systems
Interactive Voice Response (IVR) systems are common. However, scripted menus rarely match a caller’s specific situation. This leaves frustrated homeowners pressing "0" to reach a human. The most common question tax call centers receive is simply asking if taxes were paid. This question does not require a live agent, yet it consumes significant time.
When an IVR system uses real-time, loan-specific tax information sourced directly from taxing authorities, it becomes the answer itself. Customized responses served dynamically based on the caller's specific loan and tax situation resolve issues instantly.
Real-time dashboards and portals
Prevention is more efficient than correction. Servicers need to see potential issues before they escalate. A centralized view of the entire tax ecosystem helps teams spot reporting cutoffs, duplicate tax IDs, or exemption discrepancies early.
Applying business rules at loan setup flags tax line issues immediately. Forecasting tools help servicers anticipate tax liabilities and escrow shortfalls before billing cycles begin. This represents a meaningful shift from reacting to tax problems to preventing them entirely.
For instance, Cotality’s DigitalTax Portal gives servicing teams a centralized view of payments, exemptions, and economic loss dates.
The right partner is essential
Servicers who use technology to cut through property tax confusion do more than reduce inbound calls. They turn potential issues into opportunities to build trust. Trust matters significantly when rates shift and borrowers reconsider their next move.
Cotality’s tax solutions deliver holistic support with specialized tax experts and strong technology.
Building the tech foundation is only step one
Leveraging technology to handle predictable inquiries at scale is the first step toward modernizing your operations. However, technology is only as effective as the strategy behind it. To truly eliminate tax season anxiety, servicers must know exactly when to communicate.
Up next in Part 2: We introduce the Tax Moments Framework, a proactive communication calendar designed around the critical tax cycle triggers that strengthen borrower trust.
