#PropertyTax #LoanServicer #MortgageIssues #EscrowAccount
🏡 Should I pay my property taxes directly because my loan servicer hasn’t paid them yet? 🤔
If you’re in a situation where your loan servicer hasn’t paid your property taxes yet, it can be quite concerning. After all, property taxes are an essential part of homeownership and not paying them on time could lead to penalties and even the risk of losing your property. So, let’s break down what you should do in this scenario.
### Why Haven’t They Paid?
Before jumping to any conclusions, it’s important to understand why your loan servicer hasn’t paid your property taxes yet. There could be a variety of reasons for this delay such as administrative errors, technical issues, or simply a change in disbursement schedule. In some cases, they might simply be waiting until the last possible moment to make the payment without incurring any penalties.
### The Risk of Not Paying
It’s important to note that even though your loan servicer is responsible for paying your property taxes through your escrow account, ultimately it is your responsibility to ensure they are paid on time. If they fail to make the payment and the taxes become delinquent, it could have serious consequences for you as the homeowner.
### Should You Pay Them Directly?
Considering the current situation, the question arises – should you pay your property taxes directly even though your loan servicer is supposed to handle it? Here are a few things to consider before making that decision:
1. **Check Your Escrow Account:** As in the case of the person who posted the question, it’s essential to review your escrow account statements to see if the property tax disbursement is scheduled. In some cases, it might simply be a matter of the disbursement being scheduled for a later date.
2. **Contact Your Loan Servicer:** If your loan servicer has not made the payment and you’re getting concerned, it’s always a good idea to reach out to them. They should be able to provide you with a clear explanation and timeline for the payment.
3. **Assess Your Financial Situation:** If you have the means to pay the property taxes directly without causing financial strain, it might be a good idea to do so, especially if the due date is looming.
4. **Consult with a Financial Advisor:** If you’re unsure about the best course of action, it’s wise to consult with a financial advisor who can provide personalized advice based on your specific circumstances.
### Conclusion
In the scenario described, it seems that the person’s loan servicer had a scheduled disbursement for the property taxes in December. While it may seem stressful to see that the payment hasn’t been made yet, it’s essential to trust the process and have open communication with your loan servicer. If you have any doubts or concerns, don’t hesitate to seek professional advice. Ultimately, ensuring that your property taxes are paid on time is crucial for maintaining your financial stability and peace of mind as a homeowner.
Remember, every situation is unique, and it’s important to weigh the pros and cons before making a decision. It’s always best to stay informed about your financial obligations and seek help when needed.🏠💰
My mortgage provider sends a check to me payable to me and the city. Any overage I keep or shortfall I need to pay. Since they escrow an estimated amount the actual will vary. Are you sure they didn’t mail you a check?
No, it’s their contractual responsibility, so let them handle it. I am with a different servicer and can confirm that for these low end financial companies they will wait until the absolute last minute to pay. If they don’t, the penalties are on them anyway.
>property tax disbursements are scheduled for December. I find it kind of weird that it was scheduled for October last year and December this year,
If you could hold literally millions of dollars in a HYSA for 2-3 months without any penalties or late fees, why wouldn’t you?
My taxes are not delinquent until January 15 and I plan to pay them, in person, on the 12th.
If there is no penalty, then the loan servicer is incentivized to keep your money as long as possible to reap any rewards from interest on their trust account. But they will pay it, give them a call and let them know you are paying attention.
Pay them with a points earning credit card if there is no fee. If your local government charges a credit card fee see if they are on PayPal Bill Pay.
I removed Escrow from our mortgage years ago so I can earn extra points on taxes and insurance.
Fidelity National Finance is currently paralyzed by a cyberattack, so, yea if you can float the cash I’d just pay the taxes. It could be a long time before they get their shit together, or get taken over by someone and *they* get the records and payments sorted out.
No need to pay them, the loan servicer will. They typically wait until the last minute to pay the taxes.
If you don’t see a deduction from your escrow on your January mtg statement then call them and ask when the taxes will be paid.
My former escrow company would wait until the last minute to pay my property tax. They want to get as much interest as they can before paying. I removed escrow and pay taxes and insurance myself now.
No, you should wait for their phones and/or website to be operational again so that you can contact them and ask why the bill was not paid. The least complex solution here is for them to figure out the mistake and resolve it on their end.
If you get to January 4th and are facing a late fee, sure, pay and continue working the problem, but you’re not there.
I’d consider paying the taxes on time to keep from popping a FIFA tax lien on your property. Then, notify the mortgage company in writing. Settle up later.
Let them answer the phone. Let them then figure it out & pay. Then cancel the impound account. You obviously have the funds and maturity to remember to pay your own p-tax bill. Take the money, stick it in a HYSA (Marcus by Goldman is solid), and then when the time comes (set a couple reminders on phone & desktop), just take the funds and pay online (you’ll now have a couple hundred in interest you’ve made, buy a dividend stock, pick dividend reinvestment) and you just turned your p-tax impound account into an alpha rather than delta.
Fidelity National Financial is in the middle of a massive security incident – https://techcrunch.com/2023/11/27/ransomware-catastrophe-at-fidelity-national-financial-causes-panic-with-homeowners-and-buyers/
I am with a different mortgage company, but every property tax payment they’ve made for my place has been paid after the “due date” but before the penalty kicked in.
I don’t even understand how it’s a due date if there’s no penalty for being a little late.
Why would you pay them? A lot of loan servicers don’t pay until closer to the delinquency date because that’s how the vendor they use does it.
If you can afford to pay them and wait for a refund from the escrow, you can.
Lakeview would not let me plan to pay directly and required the taxes to be paid from escrow on a prior loan of mine. They were notorious for waiting until the last minute to pay the taxes.
One year I was charged a late fee on the taxes and they deducted it from my escrow even though it was their fault.
Just throwing my 2 cents in: my mortgage is also serviced by Lakeview Loancare and they only paid my taxes a couple days prior to the delinquency date, NOT when they were “due”, so it’s possible that they’re just waiting until early January.