Do Banks Pay Property Taxes For Homes Behind on Their Mortgages?
The answer is yes! Banks will definitely pay property taxes for homes behind on their mortgages. If the bank doesn’t pay the taxes, the government will sell the property at auction to the highest bidder. When the winning bidder forecloses on the property, if the bank hasn’t paid the taxes, they will lose their interest in the property, right along with the owner that didn’t pay the taxes. This doesn’t mean that your bank will pay your taxes for you, if you can’t come up with the cash. Even if you are current on your mortgage payments, the bank may move to foreclose. This is why most mortgage companies roll the yearly taxes into the monthly payments. That way, the mortgage company knows the taxes are paid, and if you default on your payments, they can move to foreclose. The mortgage company always knows what’s going on this way. This presents an interesting opportunity for investment. If we know that mortgage companies pay taxes to avoid losing property, what does that tell us about pro
