Homeownership in Philadelphia comes with its share of responsibilities, one of the most important being the payment of property taxes. The City of Philadelphia has addressed a common concern among homeowners regarding what happens if their mortgage company does not take care of the property taxes.
According to the information provided by the city’s official website, property owners in Philadelphia are required to pay an annual Real Estate Tax. “You owe Philadelphia’s Real Estate Tax if you own a property in the city. As a homeowner, it’s your responsibility to ensure the tax is paid—and on time,” the city explains. Most mortgage lenders collect a portion of these taxes monthly via an escrow account and then make the annual tax payment on behalf of the homeowner. However, this isn’t always the case, and not all mortgage companies set up this kind of arrangement.
For those whose lenders do not handle property taxes through an escrow account, the burden falls squarely on the homeowner to ensure that these taxes are paid in full and in a timely manner. The repercussions of not doing so can lead to penalties or, in the most severe cases, the city taking action against the property. Homeowners are urged to verify their tax payment setup with their lender to avoid any potential issues…