A quick note on property taxes.
Timely payment of property taxes can result in the avoidance of loan default, foreclosure proceedings and long term savings. When property taxes are not paid, they are typically sold to third parties who hold the claims while they continue to accrue interest and legal fees. The accumulation of significant unpaid property taxes, may be a default under your loan that allows the lender to foreclose. If the lender has paid old property taxes on your behalf, these claims will be charged back to your loan. Additionally, the property tax claim holder could also seek to file a foreclosure suit. Property tax claims are typically paid ahead of the mortgage claims in foreclosure. To avoid delinquent property taxes, escrow them with your lender or set up your own account to escrow them monthly if your lender does not have an escrow option.