Can mortgage lender take it upon themselves to pay your property taxes?
Written By: admin on November 25, 2009
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If you don’t have an escrow account and you are 6 months behind on your property tax payment, by law you have 5 years before the tax collector could foreclose for taxes due, but can the mortgage company step in and pay the amount and charge for past due and one year in advance raising your mortgage payment a lot.
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Tags: escrow account, mortgage company, mortgage lender, mortgage payment, property tax paymentTags: escrow account, mortgage company, mortgage payment, property tax payment
If you do not have an escrow account set up with your lender where the lender require that you pay either your taxes or insurance or both where they pay them on your behalf then failure on your part to make the insurance or tax payments when each are due the lender will then pay them on your behalf thus requiring you to pay them.
Once they pay one or both the insurance and taxes they could require you to pay the outstanding taxes they have paid for you as well as require you to pay in advance thus setting up an escrow account for future payments.
By paying them on your behalf they are preventing delinquent tax fees that might add up in the event you fail to make your monthly mortgage payment and foreclosure procedures have to be taken against you.
I hope this has been of some benefit to you, excellent luck.
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