Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I guess you and the other posters missed by pulling. People who pay through the mortgage never pay the municipality directly. Thus they are oftentimes not receiving bills. I have always insisted that my mortgage being non-escrow So I am used to sending out checks on or before April 30th, June 30th, september 30th and, if I didn't pay in full January 31st or the last day February. People whose taxes are escrowed have no such habits.
Not sure how it works where you are. Here, taxes/insurance are escrowed with your mortgage, so it gets paid from your escrow account. Once you pay off your mortgage, you DO receive an actual bill for your taxes - in the mail. I am looking at mine right now. Not sure how one would miss it.
Do they also develop the habit of throwing in the trash all delinquency notices they receive? Also notices of liens being filed, or impending foreclosure?
How can you pay mortgage payments for 30 years, have conversations with family members, neighbors, co-workers, all that time, and be unaware that there are property taxes to be paid by all property owners?
I'm sorry, but I cannot consider the fact that upon payoff of a mortgage the owner has to pay their property tax every year, as a "serious downside" of paying it off. It's just like any other bill. You receive the bill, you pay the bill. Adulthood 101.
I don't think it would happen for most people - just those that are having SERIOUS problems.
My best friend, a few years ago, stopped opening her mail. Seriously. She just stopped. She has a son that is severely disabled, an ex that is a dick and pays no support at all, and she just became overwhelmed with everything. She came home one day to a foreclosure notice and lost her house. Hard to believe I know. I was completely stunned. But it happens.
She managed to get back on her feet somehow, rented an apartment with handicapped access. But such a shame she just gave up like that.
Then I think we can agree that it isn't a downside to paying off your mortgage. It's something to keep note of, but not something inherently bad with the process of switching from a mortgage to self paid tax bills.
Agreed. That was a strange take on it.
I've always paid my taxes. How I pay them (via escrow or directly) doesn't really matter to me.
I don't think it would happen for most people - just those that are having SERIOUS problems.
My best friend, a few years ago, stopped opening her mail. Seriously. She just stopped. She has a son that is severely disabled, an ex that is a dick and pays no support at all, and she just became overwhelmed with everything. She came home one day to a foreclosure notice and lost her house. Hard to believe I know. I was completely stunned. But it happens.
She managed to get back on her feet somehow, rented an apartment with handicapped access. But such a shame she just gave up like that.
I'm guessing she had no equity in the house? Otherwise why wouldn't you protect that and sell? I watched that series on Netflix called How to Get Rich which is about budgeting a finances. In it, some of the participants ignored their bills because it just made them upset and felt overwhelming. I have no doubt that happens but to be that reckless with something that contains equity, I don't see it happening.
Not sure how it works where you are. Here, taxes/insurance are escrowed with your mortgage, so it gets paid from your escrow account. Once you pay off your mortgage, you DO receive an actual bill for your taxes - in the mail. I am looking at mine right now. Not sure how one would miss it.
Quote:
Originally Posted by ChessieMom
I don't think it would happen for most people - just those that are having SERIOUS problems.
My best friend, a few years ago, stopped opening her mail. Seriously. She just stopped. She has a son that is severely disabled, an ex that is a dick and pays no support at all, and she just became overwhelmed with everything. She came home one day to a foreclosure notice and lost her house. Hard to believe I know. I was completely stunned. But it happens.
She managed to get back on her feet somehow, rented an apartment with handicapped access. But such a shame she just gave up like that.
I agree with both of you. Many people who have paid off their mortgage are a bit on the elderly side and don't know much about finance management.
I'm guessing she had no equity in the house? Otherwise why wouldn't you protect that and sell? I watched that series on Netflix called How to Get Rich which is about budgeting a finances. In it, some of the participants ignored their bills because it just made them upset and felt overwhelming. I have no doubt that happens but to be that reckless with something that contains equity, I don't see it happening.
I have no idea. It was a townhouse, and it was an old one, needed a LOT of work really. She couldn't take care of it. I think she had stacks of mail that she had never opened. This is someone that was totally overwhelmed with the care of her son, and I guess the bills were just too much for her.
I agree with both of you. Many people who have paid off their mortgage are a bit on the elderly side and don't know much about finance management.
Oh my GF was not elderly LOL. I mean...not sure what you call elderly, but she was not even 60. She was however, always a bit of a "ditz" unfortunately. Still is. I love her anyway.
There is one very serious downside; payment of property taxes. Many people pay their mortgage and an escrow for property taxes. Those people have tragically found their houses lost for a few thousand dollars worth of property taxes when those did not start being paid after the mortgage was paid off. Insurance was not such a problem; whoever was ensuring the property through the bank would send a notice. The municipalities were not so lenient. I know of a few cases where properties were lost in that manner.
Why wouldn't they pay the property taxes? Surely they are smart enough to know to go to the municipality and pay the tax. Even my 83-year-old old lady friend, whose brother paid off her mortgage for her a few years ago, knows to go over to the municipal hall and pay her property tax on her condo.
I guess you and the other posters missed by pulling. People who pay through the mortgage never pay the municipality directly. Thus they are oftentimes not receiving bills. I have always insisted that my mortgage being non-escrow So I am used to sending out checks on or before April 30th, June 30th, september 30th and, if I didn't pay in full January 31st or the last day February. People whose taxes are escrowed have no such habits.
But still--my first question would be "OK, how do I pay my taxes now" and run over to the town hall to talk to the clerk. And where I live, I get an annual tax notice anyway telling me what I paid this year and what my estimated taxes are next year. It's not as if taxes miraculously disappear when the mortgage is paid off.
I can see in some cases where ignorance was a life choice how it could happen, though. My mother's best friend called her in an absolute panic a couple of months after her husband died. She'd received a property tax bill for thousands of dollars in the mail and was completely shocked. This was Bergen County, NJ, which, as I know YOU know, has one of the highest property taxes in the nation.
Totally clueless. Had never written checks for bills, had no idea how much her property taxes were. Husband always took care of all that stuff. My mom went over and helped her look at everything and understand her bills. The husband was in insurance and had done well and left his wife in a very comfortable position. She had plenty of money to pay those taxes, but she'd never had any idea how much they were. She'd just floated along through life never thinking about how much anything cost because she'd gone from Caretaker Daddy to Caretaker Husband, and in her mid-70s had to learn. Her property taxes probably ran $12K at that time.
Why wouldn't they pay the property taxes? Surely they are smart enough to know to go to the municipality and pay the tax. Even my 83-year-old old lady friend, whose brother paid off her mortgage for her a few years ago, knows to go down and pay her property tax on her condo.
Common sense is a super power nowadays! We had neighbors in their early 50s in Texas (medical office manager and hvac company owner). They sold under appraisal to ward off foreclosure over 15k tax bill. This brought comps down for a while:>( "We did not know there were taxes due! Tarrant County is rather persistent when it comes to collecting.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I love her anyway. 
