In most municipalities (that means in most cities and towns), property taxes are due quarterly.

When you buy a home, most likely your lender will ask you to prepay some or all of the property taxes due on your house or condo for upcoming quarter. (So, if you bought today on September 24, your bank may require you pay the remainder of September, maybe all of October, and maybe all of November, at closing.)

Then, going forward, you will probably be required to make estimated property tax payments along with your monthly mortgage loan payments.

The lender then submits your property taxes to your city or town when due, at the beginning of the next quarter.

They do this because if your property taxes don’t get paid, the city can put a municipal lien on your property and, worst case scenario, take your property away from you, leaving the bank with nothing to show for their loan.

After the first year, your lender may let you send in the quarterly payments yourself. This is good, because it’s your own money, after all. It’s bad, if you’re not very good at money management. Suddenly you have to come up with three months’ of property tax instead of paying one month at a time.

So you might prefer the lender take money from you each month.

Well, unless the lender doesn’t then turn around and pay your property taxes on time.

Say, if they go out of business, instead.

Which, of course, is what is happening these days.

From the Globe:

Mortgage financier Freddie Mac said yesterday it settled a dispute with bankrupt loan servicer American Home Mortgage Corp., clearing the way to pay $2.4 million in delayed property taxes on behalf of thousands of homeowners.

Last week Freddie Mac warned in a lawsuit the homeowners faced an “imminent risk” of losing their homes unless it was able to recover files for 4,547 loans – worth about $796.8 million – from American Home Mortgage, which filed for bankruptcy Aug. 6.

Right. Because even though you send your property tax payments to your lender, it is you, Mr or Ms. Homeowner who is responsible for making sure your property taxes are paid.

Your city or town government doesn’t want to hear your sob stories.

Freddie Mac deal means tax will be paid – Associated Press, by way of The Boston Globe

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Updated:  1st Q 2018

Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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