- Joined
- Aug 17, 2015
What happens if you don't pay your property tax? Can't Barb just ignore it like she did the credit cards?
They can foreclose on the house
https://en.wikipedia.org/wiki/Quitclaim_deed
FYI, you can get land on the cheap by watching for auctions on quitclaims.
This is all true, but it is also possible that the mortgage company may make the tax payment and force an additional escrow payment on top of the monthly mortgage payment. Since an escrow account usually also requires a two month "cushion," it would increase their monthly mortgage payment dramatically. (Off the top of my head, probably an extra $200-300 a month, but that's purely a guess. I haven't done the math.)
EDIT: I missed that the taxes were actually paid, so this is a moot point. Overall though, if you have a mortgage on the house, the bank is going to protect it's property. If you don't pay taxes and house insurance yourself, the bank will make you do it through the mortgage.