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To: Lee Lichterman III who wrote (50031)	1/17/2006 8:36:39 PM
From: Elroy Jetson	Respond to of 110194

VA loans may require the lender withhold the property taxes in the mortgage payment. I have always paid property taxes myself without involving a lender, just in principle. But its also usually less expensive. .

To: Lee Lichterman III who wrote (50031)	1/17/2006 10:12:23 PM
From: Nancy	Respond to of 110194

The bank owns the loan secured by the property, but you are still the owner of the property and are responsible for the property tax. Your property tax is included in your mortgage payment in the form of Escrow account. You DO pay property tax, but the actual payment is handled by the mortgage company. You also pay your property tax IN ADVANCE, again, in the form of Escrow account - lender usually keep 6 months worth of property tax in the Escrow account. If you handle the property tax payment yourself, particularly if it is a large sum, you wont let the lender has free ride on your money. Plus you can decide whether you want to pay your 2005 tax before Dec 31, 2005 (thus counted for 2005 tax return) or after Dec 31, 2005 (thus counted for 2006 tax return). If you never realize this, that you have missed out one of the few remaining deduction on your tax return. (since you said you never pay property tax but in reality you do, just not realize it, then you probably never take deduction on property tax paid). Your lender should have sent you a statement at the beginning of each year to show your Escrow account balance and any adjustment for the following year - usually an increase in payment due to increase in insurance / tax etc. BTW, if your lender for some reason, forget to pay the property tax on your behalf, or is late, guess who will get hurt ? A lien will be put on your property by the tax authority, and you as the owner is responsible for that, even it is the lender's fault. We ALWAYS handled our property tax ourselves - cheaper that way and can decide which year to use the deduction.