When your mortgage pays your property taxes...
We have received questions lately from customers about their mortgage company paying their property taxes. Here’s how the process works…
The majority of properties in Beaufort County have a mortgage. When a property is mortgaged, the bank (also referred to as the lender or mortgage company) often sets up an escrow account to pay for property taxes, insurance, and other expenditures. A portion of these costs are included in the property owner’s monthly payment, accumulating over the course of the year in their mortgage escrow.
We work with lenders in two different ways.
The first is working directly with them to identify the properties they intend to pay and to then process their payment when they send it to us. The second, and most common, is the lender chooses a third-party tax-processor to work with us. This third-party is a company that specializes in handling escrow payments on behalf of the lender.
For example, if your mortgage is with Nationstar, Mr Cooper or Rocket Mortgage, their tax-processor is Corelogic. So our team would be receiving your tax payment from Corelogic, not directly from Nationstar or your mortgage escrow account.
“We want our customers to be informed so they not only understand the process but do not worry unnecessarily.”
Around September each year, the various lenders and tax-processors provide our Office with the list of properties upon which they hold a mortgage and intend to pay the upcoming property taxes.
When available, our team sends the amounts due to the lenders and tax-processors electronically. It is at this time that your mortgage escrow account is drafted.
The lenders who work with our Office directly send us one payment for all their properties shortly thereafter. But for the lenders that use a tax-processor, they send your escrow money to their tax-processor, not to our Office.
While there are efficiencies that can be gained when a tax-processor is used, it can also cause our customers confusion. Many customers assume that because their mortgage escrow account was drafted that the Treasurer’s Office must have their payment, but that is usually not the case.
This year, CoreLogic, the largest tax processor for Beaufort County, paid a month later than they historically have, paying your property taxes in January instead of December. This has resulted in hundreds of inquiries from concerned customers whose mortgage escrow was drafted but their property taxes had yet to be paid. We are not privy to the reasons behind Corelogic’s delay and, unfortunately, must refer customers back to their mortgage company.
If you have a mortgage on your property, now or plan on having one in the future, here are the top things to be aware of:
Even if your mortgage escrow was drafted for your property taxes, it does not mean that we have your payment yet.
If your property taxes are more than your lender anticipated, they will adjust/increase your monthly escrow payment. A common cause is a property being taxed at 6% instead of 4% (learn more about the Legal Residence Exemption). Should you have reason to believe that your escrow payment should be less, you can contact your lender to request an escrow analysis.
As long as your property taxes are paid by the due date, you are not late, even if your lender submits payment later than usual.
Mortgage escrow questions must be directed to your lender, they will not share details with us about individual property owners.
If you pay off your mortgage or transition from a construction loan to a traditional mortgage, be especially certain that your property taxes get paid on-time.
Not sure if your lender is paying your property taxes? Here’s how to tell.
For more information and assistance, you can always visit our Help Center or chat with us. To learn more about your team at the Treasurer’s Office, meet us here.