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RE: Very Good Article

Comment comment by Brandon on 06 September 2007

I'm not sure what you mean by multiple house owners. Do they pay higher taxes?

On the second point, I can understand there is peace of mind in not having to worry about paying taxes at the end of the year if you are forced to pay them with each mortgage payment. You take a hit in the pocketbook, though, and I think I would always advise taking the earn-interest road.

You also mention mortgage company protection and tax liens, but you'll have to explain more. I'm not familiar with how those work or how they come into play here.

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RE: Very Good Article by TheGainsayer :: NR4

No, taxes aren't different for multi-house owners per se. It's just the added cushion you get from having the benefit of one (which is all your article focuses on) multiplied across several investments. It's not a counter-point, rather a support for what you're saying.

Here's the deal with tax liens. Let's say you don't escrow your taxes, but are paying your mortgage. You can probably go three, maybe four years before the county notices and starts taking some action. Even if the amount of taxes you have delinquent is some absurdley small amount, like $1,000 or something, the county's lien on your proparty supercedes the mortgage company's. In the state of Texas, for example, the property must then go to an auction, and the winning bidder takes the property. The mortgage company must send some representative to that auction if they want to protect their investment, just like anyone else. That is what is meant by tax liens being superior to all other liens (including in this case, the mortgage company's). Therefore, you can see that escrowing the taxes is not only a safety for us as individuals, but the mortgage company as well.

Posted 06 September 2007, Hide, Parent, Reply