You did everything right. You saved money, put down 15 percent toward your home purchase, and chose to escrow your taxes and insurance so you wouldn’t be caught off guard by large annual bills. Then, unexpectedly, you received a property tax bill in the mail. Why?
When you have an escrow account, your property tax bills are usually sent directly to your mortgage servicer. Your mortgage company uses your escrow funds to pay the bill and records the transaction on your mortgage statement.
However, things don’t always go as planned. Here are some common reasons you might still receive a property tax bill:
A recent servicer change: If your loan was transferred to a new servicer, the transition may have happened mid-cycle. The bill might have been sent to your previous servicer, leading to a delay or missed payment.
Clerical or address errors: Sometimes, taxing authorities send the bill directly to the homeowner by mistake, even when the servicer is responsible for payment.
Delinquency or default: If your mortgage is significantly past due, your servicer may pause escrow disbursements. This isn’t common for new or current borrowers but can occur in cases of extended delinquency.
It’s important not to ignore any tax bill—even if you believe it’s a mistake. Here’s what to do:
Call the tax office
Contact your local tax authority to confirm whether the bill is informational or remains unpaid. Let them know your taxes are escrowed and ask if they’ve received payment from your mortgage servicer.
Reach out to your mortgage company
If the taxes haven’t been paid, notify your lender immediately. Escrow accounts are regulated, and servicers are typically required to make timely payments. Ask them to investigate and resolve the issue.
Request a current escrow statement
Review your escrow account to ensure it has been properly funded and that scheduled disbursements are on track.
Follow up until resolved
Don’t assume it’s handled after one call. Continue monitoring your mortgage statements and confirm payment with your tax authority to avoid any penalties, liens, or legal action.
Remember, in most cases, your mortgage lender will keep your escrow up until the term ends on your mortgage. You may wish to consider refinancing your home if you feel your mortgage lender is not making your tax payments in a timely manner.
At First Savings Mortgage, we’ve helped thousands of homeowners across the D.C. Metropolitan area navigate the homebuying and refinancing process with confidence. Our goal is to ensure you stay informed and empowered—whether it’s your first home or your fifth. If you’re unsure about your escrow payments or think it’s time for a change, we’re here to help.
A well-informed homeowner is our best client. Let us guide you through every step of your journey.
