Property Tax/Home Insurance Question

[rps78]

I have been reading all the forum and I know not to pay the mortgage, but what happens if I have an escrow account and the property taxes and house insurance is paid by the mortgage company? Can the town come after me for the taxes? or should I start paying the taxes myself? what about the home insurance?
Thanks in advance!

[helpmeout]

First, if there is any money in the escrow, the bank has no choice but to use that money for its intended purpose, to pay taxes and homeowner's insurance. They can't use the money to go towards the mortgage.

Once that money runs out, the bank will either pay the taxes to keep the town from taking the property or not pay the taxes and lose the property to the town. Taxes attach to the property, not the owner.

As for homeowner's insurance, you can make arrangements with the insurance company to make the payments directly to them. Keep in mind that most insurance companies will not insure the property unless you are actually living there.

[HHM]

The bank will generally force place insurance and pay the property taxes once the escrow runs out. HOWEVER, because you are still the deeded owner until foreclosure sale, if the bank doesn't pay the taxes, the county will contact you and try to collect from you. You usually won't need to pay because the bank will eventually pay the property taxes as part of the foreclosure process.