This can vary by state. Usually, a government runs July-June and Prop taxes for

Question

This can vary by state. Usually, a government runs July-June and Prop taxes for that budget year are due in Sep and Apr. This mean they stand a very good chance of being collected before year end, let alone 60 days later. Very little is left to estimates or chance in government. Prop and Real estate taxes are usually determined by April for they next year. This means payments in 9/18 and 4/19 are for 7/18-6/19 and determined from filings made in 12/17. If the money is collected by 9/1 of 2019 the revenue is counted and usually the CAFR is created after 9/30/2019. When RE taxes are not paid, usually the government can initiate a tax sale.

Does this explain why mortgage servicing companies Escrow RE tax?

Explanation / Answer

Escrow RE Tax: The escrow account based on the concept of depositing the periodical small amount to meet the bigger expenses at the end of a specified period. Escrow RE tax is collected by the home owners through periodical deposits in an escrow account so that the lender or mortgage servicing company can make the annual tax payment on time (when these taxes are due).

The governemnt has provided the 60 days peirod after the year ends for tax deposits. But, usually the RE tax is paid before the year end itself on the estimation basis because there are hardly any mid-year changes in the taxation.

Also, one more reason for mortgage servicing companies to escrow RE tax is that it works as an added feature for their product (motgage) and simplifies the burden for the home owners.

So, the given statement is true that mortgage servicing companies escrow RE tax.

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