Making Life Simpler With Automated Escrow Property Taxes Payments

Making Life Simpler With Automated Escrow Property Taxes Payments

Whether you're a homeowner or looking to buy a property, understanding escrow property taxes will make life easier for you! Paying real estate or house taxes via escrow is convenient and efficient, giving homeowners peace of mind and financial stability. You’re probably wondering things like, “Does my mortgage pay my property taxes.” Rest assured, we’ll answer this and more shortly. And, of course, you can count on CertSimple USA, LLC at every stage of the process, be it for acquiring tax certificates, setting up escrow tax payments, and so on. Let's get started!

Paying Taxes With A Mortgage – How Does It Work?

So, is escrow property tax payment even practical?

Well, of course, it is.

Here’s how it works:

When you become a homeowner, you can opt for paying property taxes through a mortgage, making the process more manageable and convenient.

But what is the meaning of all this?

Quite simple, actually:

When you secure a mortgage, your lender may offer to set up an escrow account. This account holds some of your monthly mortgage payments. This balance is then used to cover property taxes and insurance premiums.

By paying property taxes through a mortgage, you minimize the risk of missing tax deadlines, giving you peace of mind. Escrow accounts also protect the lender. Since all property taxes will be paid on time, no tax liens will be placed on the property.

Let’s Answer: Why Did I Get A Property Tax Bill If I Have Escrow?

Did you do the necessary and still get a tax bill?

Wasn’t your escrow account supposed to pay for it?

You’re probably wondering, “Why did I get a property tax bill if I have escrow?”

We already covered the definition of an escrow account and how it covers tax payments and also addressed the "Does my mortgage company pay my property taxes.”

You still might get a bill for your taxes due to one or more of the following reasons:

  • The bill may be issued before your escrow account has enough funds to pay your taxes.
  • It may be due to any local tax rate changes or property reassessments.
  • Your escrow account may not have enough funds to cover the full tax amount.
  • There could be delays if your mortgage was transferred to a different servicer.

Now that you know the answer to “Do banks pay property taxes,” let’s move on and see how you can verify payment.

How Can I Check If A Tax Payment Was Made For Me?

You’ve done the necessary but are now wondering, “Are my property taxes paid by escrow?”

Here’s how you can check things:

  • Check your mortgage balance statements for details of your escrow account activity.
  • Reach out to your lender or mortgage servicer directly for specific details.
  • Contact your local tax authority to inquire about your property tax payment status.
  • Check your escrow account details from there if you have online account access.
  • Ask for a payment receipt from your lender whenever they pay your taxes.

Since we’ve already answered, “Does escrow pay property taxes, and how can I check the payments," let's see why you need an escrow account to begin with.

Why Can’t I Just Pay Property Taxes Myself?

You don’t necessarily have to use a real estate tax escrow account to pay your property taxes, but doing so comes with many perks in Texas and elsewhere:

  • It makes the whole process very simpler
  • Using a real estate tax escrow account is highly convenient
  • You can avoid late payments this way 
  • Some lenders may require an escrow account
  • You might be required by the Federal Housing Administration (FHA) or the Department of Veterans Affairs (VA) to have a real estate tax escrow account
  • It helps your lender adjust your payments according to any property tax changes
  • Your lender will also want to protect their investment in your property which is possible if you opt for property tax paid by escrow
  • Plus, your escrow accounts can also cover homeowners' insurance premiums

Escrows Continue To The End Of Your Mortgage Loan

Your tax escrow accounts continue until the end of your mortgage loan term. As long as you have an active mortgage and use your tax escrow account, your lender will collect funds for property taxes and insurance premiums from it.

Once your mortgage is fully paid off, the escrow account will be closed, and you’ll have to handle property tax and insurance payments on your own.

Hopefully, this answers, “When does escrow pay property taxes?”

What Happens When You Pay Off Your Mortgage?

You’ve opted for the escrow pays property tax option and continued to use it until your mortgage is paid off. When that happens, you’ll receive a "satisfaction of mortgage" letter from the lender. You will thus become the sole property owner.

This also means that you’ll have to handle your tax and insurance premium payments on your own.

Who Pays My Taxes If I Pay Off My Mortgage?

When you pay off your mortgage, you’ll no longer have an escrow account for tax disbursement mortgage payments. Instead, you’ll become responsible for paying your property taxes directly. You’ll have to make arrangements with your local tax authorities to ensure timely tax payments.

Contact The Experts At Certsimple USA – Real Estate Closing Solutions Providers You Can Count On!

Whether you’ve got questions like “Is property tax included in escrow” or “When does escrow pay,” or need more hands-on help, you can count on CertSimple USA, LLC. We offer expert guidance and support throughout the closing process, ensuring a smooth transaction.

We prioritize efficiency and accuracy in all escrow property taxes documentation, saving you time and providing peace of mind. You can expect personalized solutions, prompt service, and transparent communication with our staff at CertSimple USA, LLC.

Reach out to us now and see for yourself how we can make taxes simpler for you!