If you have a mortgage on your home, the loan servicer might collect money from you as part of the monthly mortgage payment to later pay property taxes. The servicer pays the taxes on the homeowner’s behalf through an escrow account. If taxes aren’t collected and paid through this kind of account, the homeowner must pay them directly.
Failure to pay taxes is usually not allowed under a mortgage contract. This may result in the mortgage company filing a foreclosure. The terms of most mortgage contracts require the borrower to stay current on their property taxes. If you don’t pay property taxes then you’ll be in default under the terms of your mortgage. A loan servicer can foreclose on the home in the same manner as if you had fallen behind in monthly mortgage payments.
If you cannot afford to redeem the taxes, you may want to try contacting your mortgage lender to see if they will redeem the taxes and add the balance to your existing mortgage. You may also consider taking out a home equity line of credit (HELOC) or reverse mortgage to pay the taxes.
Property tax liens almost always have priority over other liens, including mortgage liens and deed of trust liens. This means that the parish will get paid before any other people or banks who have a claim to the home. Because a property tax lien has priority, if you lose your home through a tax sale process, mortgages get wiped out. So, the loan servicer will usually advance money to pay delinquent property taxes to prevent this from happening. The servicer will then demand reimbursement from you (the borrower). If you have a mortgage and fall behind on property taxes, the mortgage company will step in to pay the taxes to the tax collector. The mortgage company will protect its interest in the property.