Monitoring Your Mortgage Company
If you received a delinquency notice and pay your property taxes through a mortgage escrow. Some property owners ask mortgage companies, bank, or other lending institutions to establish escrow accounts to pay property taxes. When such an arrangement is made, the taxpayer is still responsible for ensuring that the tax payment is made. Additional information for homeowners concerned that a mortgage company may have failed to submit a timely payment.
This information advises taxpayers on how to monitor their mortgage holders to ensure that tax payments are made on time and in full.
Can a mortgage company pay a property owner’s property tax?
Yes. Usually at closing, the buyer and lender agree to set up an escrow account for that purpose (RCW 84.56.330).
Are there risks to paying through a mortgage company?
Yes. Sometimes both the company and the homeowner pay the taxes. If you are not sure whether you are paying taxes through your mortgage escrow, call the lender. Do not double pay. A company also may fail to pay the taxes or they may pay on the wrong property account number – something that happens to taxpayers each year in Clark County. For these reasons, you should check the payment status section of this web site to confirm that the company has made a payment after each installment is due.
What if neither the mortgage company nor the homeowner pays the taxes?
Taxes along with interest and penalty are still due. If payment is delayed for three years, the property will be foreclosed on and sold at a public auction. Remember: If you are current on your escrow and the company fails to pay on time or on the correct property account number, state and federal laws require the lender to pay any late penalties or fees. You should also be reimbursed by the company for any money taken from your escrow that is paid on the wrong property account number.
How can the owner avoid such problems?
Homeowners must stay aware of their property tax payment status by checking on line or staying in contact with the mortgage company. When a tax installment is due, a homeowner should check with their mortgage company. When a tax installment is due, a homeowner should check with the company to see on which property account number it is going to pay.
Mortgage Foreclosure Resources