Monday, February 25, 2008

Tax Liens - Is your Mortgage Company Bad Pay?

An avalanche of tax liens to hit Bucks this week

The Bucks County Tax Claim Bureau is expecting to notify over 10,000 homeowners of liens placed on their homes as a result of back property taxes owed. The bureau estimates that 80 percent are a result of mortgage companies rather than delinquent taxpayers. The 10,157 homeowners in 2007 is a 9.5% increase from 2006 when 9,278 homeowners received the same notification.
Source: The Intelligencer; 2/17/08

How can you avoid this?
  1. Promptly forward any tax bill you receive to your mortgage company.
  2. Follow up with the tax office to confirm that your taxes have been paid on time.
  3. Contact your mortgage company immediately if the taxes have not been paid.

Take responsibility for insuring that your mortgage company pays your taxes. If they don't, the lien will be placed against your property, even though it is your mortgage company's responsibility to pay the tax bill out of the tax escrows.

Stay tuned for my next post, where I'll take a look at non-escrow (sometimes called impound free) mortgages, and examine the benefits/risks to that option.

Want to know your local tax collector's number to confirm your taxes are paid up to date? Shoot me an email with your township, and I'll be happy to forward their information...

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