Escrow Accounts

• Many people pay their property taxes through an escrow account. A fixed sum is paid into this account with each of your monthly mortgage payments, and the mortgage company pays property taxes and insurance when the payments fall due, usually twice a year. If you have fallen behind on monthly payments, and your home is in foreclosure, the lender will continue to make the property tax payments --- failing to do so would result in a tax lien on the property and possible seizure and forced sale by the taxing authority.
  
  

Self-Payment

• If you as the homeowner are responsible for the semiannual property tax payments, then your failure to keep them current will eventually result in the taxing authority placing a lien on the house for the back taxes. The county will allow a certain amount of time to pass, then foreclose on the lien by either seizing the house and holding a sheriff's auction or by selling the lien itself to the highest bidder. The lienholder pays off the tax balance; if you do not repay him within a certain amount of time, the lienholder can then foreclose on the house.
  
  

Forced Escrow

• If you manage to work out a repayment of the delinquent or defaulted mortgage before foreclosure, then the lender will pay off the back taxes and impose a new escrow balance, which takes this payoff into account. When various fees and charges for the payment are added in, this escrow will require a higher monthly contribution out of your mortgage payment.
  
  

Forced Sale

• If the foreclosure leads to a forced sale of the property, then any back taxes still due must be paid from the proceeds of the sale. Delinquent taxes are not allowed to roll over from one owner to the next. The taxing authority is first in line for repayment, followed by the homeowner's insurance, homeowner's associations and any other entities that have the legal authority to impose liens on the house.