My question involves a mortgage in the state of: California
Here in California by law a lender cannot impose an escrow account for property taxes unless they loan you more than 90% of the value of the property. Consequently, I do not have an escrow account with the lender.
My mortgage is paid but the first installment of my property taxes is 60+ days delinquent. The second installment is due in April. If both are not paid by July 1, the property is listed as in default of the property taxes. By January 1, tax lien is filed. The county will not foreclose on a tax lien for 5 years but of course penalties and interest accrue during this time.
It is my understanding that the bank will pay these taxes at some point in order to protect their interest in the property. My question is - how long will the bank wait?
My county does not notify the lender of the delinquency, but it is my understanding that the banks hire companies to routinely examine the property tax records to find out about delinquencies and act on them. I am over 60 days late on the first installment and have been assessed a delinquency penalty on that installment already so I am a bit surprised that they haven't paid them yet. Maybe it is because the second installment hasn't come due yet? Do they wait until the full amount of the taxes are due?
I am looking for anyone who has had experience with this to let me know how it works in actuality - how long will they wait to pay the taxes?
I understand that once they pay them an escrow account will be required as well as additional payments for the unpaid taxes and penalties and interest so that is not part of my question. I just want to know about how long they will let this go on before they pay the taxes. Thanks!