The Importance of Escrow Accounts

At a time when many homeowners are having troubles making their monthly mortgage payments on time, the reasons for their dire financial situations have been examined. While some people are suffering from the problems associated with adjustable interest rates and other loan-related issues, others may find themselves in trouble because they did not establish an escrow account to help pay for their property taxes.

When it comes to purchasing a home, it is important to be aware of all of the costs associated with the purchase. While most people understand that paying their mortgage payment is essential to keeping their property, it is also important to save up for the taxes that are associated with owning property. If you are having trouble making your monthly mortgage payments, contact the Maryland mortgage modification lawyers of Chaifetz & Coyle, P.C. at 443-546-4608.

Escrow Accounts and Tax Liens

Escrow accounts are important because:

• Part of the monthly mortgage payment goes into the account to help pay taxes at the end of the year
• The homeowner does not have to save for property taxes on his or her own
• The property owner has assistance saving for the estimated yearly taxes
• If the taxes are more than estimated, the buyer usually only has to come up with money to cover the shortage
• The buyer can avoid the shock of a huge tax bill at the end of the year

Some lenders require that buyers establish an escrow account to make sure they have money to pay their taxes. The approval of the loan may be contingent on having an escrow account in some cases. Failure to properly save for property taxes can be disastrous for homeowners and may result in a tax lien being placed on their property.

Contact Us

If you are facing foreclosure or are struggling to maintain payments on your home loan, contact the Maryland mortgage modification attorneys of Chaifetz & Coyle, P.C. at 443-546-4608 today.