Falling Behind on Property Taxes? Here’s What You Need to Know
Lately, I’ve been seeing more and more homeowners fall behind on their property taxes.
And while it might seem like just another overdue bill, it can actually become a much more serious situation if it’s not dealt with early.
Why Property Taxes Matter More Than You Think
Many people don’t realize that lenders are paying closer attention to property taxes — even at renewal.
More and more lenders are now asking to see your property tax bill when you renew your mortgage.
Why?
Because unpaid property taxes can pose a risk to the lender.
Once property taxes fall too far behind, the municipality has the legal right to take action — including potentially selling the home to recover the unpaid taxes.
That’s not a situation anyone wants to be in.
You Need to Be Up to Date — Even at Renewal
A common misconception is that if you’re simply renewing your mortgage, everything will move forward automatically.
But lenders still need to confirm that your property taxes are up to date.
If they’re not, it can affect your ability to renew with certain lenders — especially if you’re trying to stay in the best-rate (A lender) space.
What If You’ve Fallen Behind?
The good news is — there are options.
Depending on your situation, we can often:
- Refinance the outstanding taxes into your mortgage
- Use short-term solutions to bring the balance up to date
Every situation is different, but the key is addressing it early.
The longer the balance grows, the more challenging it can become to resolve.
Who Is Actually Paying Your Property Taxes?
Another area where there’s a lot of confusion is:
“Am I paying my property taxes… or is my mortgage company?”
The answer depends on how your mortgage is set up.
Some homeowners pay their taxes directly to the municipality.
Others have their lender collect and pay the taxes on their behalf.
This is why it’s so important to review your tax bill carefully.
What You Should Check Right Now
If you’ve received (or will soon receive) your interim tax bill, take a moment to review it.
Look for:
- Whether your mortgage company is listed on the bill
- If you’re set up for pre-authorized payments
- Whether there is any outstanding balance
And most importantly — don’t ignore it.
The Bottom Line
Falling behind on property taxes happens — especially with how things have been financially over the past few years.
You’re not alone.
But it’s something that should be dealt with as soon as possible.
The earlier you address it, the more options you’ll have — and the easier it is to get things back on track.
If you’re unsure where you stand or need help figuring out your options, feel free to reach out. I’m always happy to help you work through it.