Dave Dodson wrote on [Tue, 18 Sep 2007 20:08:06 -0500]:
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You could read the article and find out, I guess.

On Sep 18, 7:57 pm, Justin <nos...[at]insightbb.com> wrote:
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So has anyone been charged?

Dave

Dave Dodson wrote on [Tue, 18 Sep 2007 19:26:40 -0500]:
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I believe that was the point of the article, that and that taxes aren't
being paid.

On Sep 18, 2:56 pm, Justin <nos...[at]insightbb.com> wrote:
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An escrow account is not the property of the mortgage company, but is
held by them in trust for the benefit of the borrower. If the borrower
paid enough to cover the taxes and the escrow account has insufficient
funds to pay the taxes, then it would seem that embezzlement or theft
has occurred.

Dave

huntinvest.com wrote on [Tue, 18 Sep 2007 11:48:51 -0500]:
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I think you may be missing the point that the mortgage company's escrow
checks to the tax agency are bouncing, not the homeowners.

joetaxpayer <joetaxpayer[at]nospam.com> wrote:
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This is a point worth expanding on. There can be income tax advantages to this.
One year, you pay the current year's property taxes in January and the following
year's property taxes in December of the current year. This allows you to
deduct both year's property taxes in the current year.

The next year, you don't pay any property taxes and take a standard deduction.
In some cases, this can maximize your tax deductions. It doesn't do you any
good if two year's property taxes and other deductions do not exceed standard
deduction. It also doesn't do you any good if you are subject to AMT since
property taxes are not deductible on the AMT.

-- Doug

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I had a similar experience. I had two units in the same complex, with
two mortgages from the same bank. Somehow, the tax got credited to one
unit, both payments, and I got late notices on the second unit from the
town tax dept. It took till the third time this happened that I wrote
the bank and said I'd be paying my own taxes on both properties.
Until then, they were adjusting the withholding every two or three
months, even though the tax only changed annually. Just a real pain in
the neck. My current mortgages both allow me to pay my own taxes, which
mean I am keeping whatever interest I earn before the payment is due,
and I can choose which year to make the payment for Q1 (i.e to pay in
December or January).
JOE

info_at_1-script_dot_com[at]foo.com (huntinvest.com) wrote:



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On our last mortgage, we were allowed to pay the taxes and insurance ourselves,
without escrow. The lender said they offer the option if you put at least 20%
down. Also, our daughter was not required to have an escrow. Both of these are
in Texas.

-- Doug

----- Beliavsky wrote:


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I believe this is why those tax payments are actually put into an escrow
account by at least some lenders. I though all, but apparently just some.
Also, I don't believe they would give you an option to pay taxes yourself
'cause if you don't pay the taxes AND default on your mortgage the bank
will get stuck with your house and the tax debt.



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Beliavsky <beliavsky[at]aol.com> wrote:

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I started getting cancellation notices from my homeowner's insurance company
when the mortgage company didn't pay them. I paid the insurance, then
straightened it out with the mortgage company, which wasn't easy.

If you have the discipline to save for taxes and insurance, it is better to do
it yourself.

-- Doug

http://www.baltimoresun.com/business...,4511686.story
Ailing lender's checks bounce: Area homeowners' taxes left unpaid
By Jamie Smith Hopkins, Baltimore Sun reporter

If the mortgage company, for some reason, does not pass on the
property taxes paid by the homeowner, the homeowner is still on the
hook. The next time I buy I will try to arrange to pay the property
taxes myself if possible.