P a t r i c k J e f f r e y R e a l t yProperty Tax Escrow
A home mortgage
is subordinate to any unpaid property tax bills. This means that the taxes must
be settled in a sale before the lender is repaid.
Because of this, many lenders require homeowners to include property taxes with
mortgage payments. The funds are placed in an escrow account and used to make
tax payments when they are due. Some lenders also handle homeowner's insurance
in this way.
