I appreciate the opportunity to contribute, though I should note upfront that as a personal injury attorney at The Barzakay Law Firm in Florida, property tax and mortgage questions fall outside my primary practice area. However, I've dealt with property-related issues in premises liability cases and understand how these financial obligations impact injury victims trying to maintain their homes while recovering. **Property taxes are annual taxes levied by local governments based on your property's assessed value.** These funds typically pay for schools, police, fire departments, road maintenance, and other municipal services. In Florida, where I practice, property taxes can significantly impact injury victims who are already struggling with medical bills and lost wages--I've seen clients forced to sell homes because they couldn't manage both their injury-related expenses and property tax obligations simultaneously. **Most lenders require property taxes to be included in your monthly mortgage payment through an escrow account, which acts as a holding account where the lender collects and pays your taxes on your behalf.** This is standard for loans with less than 20% down payment. The advantage is budgeting simplicity--one payment covers everything--but the downside is you lose control over that money and any potential interest it could earn. Some lenders allow escrow waivers if you have sufficient equity, but they often charge a higher interest rate for this privilege. **Missing property tax payments can result in liens against your property and eventual foreclosure, which is particularly devastating for injury victims already facing financial hardship.** At The Barzakay Law Firm, we work on contingency fees specifically because we understand how quickly financial obligations can spiral when someone is injured and unable to work. Alon Barzakay, Managing Attorney, The Barzakay Law Firm, Boca Raton, Florida, contact available through barzakaylaw.com
I'll be transparent--I run a window and door replacement company, not a mortgage firm, but after 20 years working with Chicago homeowners on major home improvement projects, I've had countless conversations about how people budget for large expenses alongside their existing obligations like property taxes. Many of my clients at HomeBuild are juggling financing for window replacements while managing their mortgage escrow accounts, so I've seen how these payments intersect in real household budgets. **One thing I've noticed is that homeowners often don't realize their monthly mortgage payment can fluctuate when property taxes change.** I had a client on the North Side whose monthly payment jumped $180 after their home was reassessed following our premium Pella window installation--the energy-efficient upgrades actually increased their property value and therefore their tax assessment. They were shocked because they thought their mortgage payment was fixed, but the escrow portion adjusts annually based on tax changes. **The biggest advantage I see with escrow is that it forces discipline--you can't skip the tax payment even during tough months.** We offer 25-month, 0% interest financing at HomeBuild specifically because we understand homeowners need predictable monthly payments. When someone's managing a mortgage with escrow plus our financing plan, they appreciate knowing exactly what's due each month without surprise annual tax bills hitting them all at once. **From a home improvement perspective, upgrades like energy-efficient windows can affect your property taxes both ways.** In Cook County, energy-efficient improvements sometimes qualify for assessment freezes or exemptions that can actually lower your tax burden, but you have to apply for them--most homeowners miss this opportunity entirely. Steve Mlynek, CEO & Founder, HomeBuild Window, Siding & Door Replacement Company, Chicago, Illinois, contact available through homebuildwindows.com
I'm Rebecca Perry, a Board-Certified Family Law Specialist in Greensboro, North Carolina, and after 30 years handling high-asset divorces, I've reviewed thousands of mortgage statements and property tax records during equitable distribution cases--these documents are critical when dividing marital estates. **The issue I see constantly in divorce cases is spouses who have no idea whether their property taxes are escrowed or paid separately until we're knee-deep in findy.** Just last year, I had a client whose husband had been paying their property taxes directly for 15 years outside of escrow, and she genuinely believed it was included in their mortgage payment. When we divided assets, we finded he'd been late on taxes twice, creating liens she knew nothing about--that directly impacted her credit and the equity available for distribution. **From a divorce planning perspective, I always tell clients to check their escrow status before separation because it affects your immediate cash needs.** If your taxes aren't escrowed and you're suddenly responsible for your own household post-separation, you need to budget for that annual or semi-annual lump sum--I've seen people drain their settlement funds or emergency savings because they forgot about a $4,500 tax bill coming due. In North Carolina, we use the date of separation to value marital property, so knowing exactly what's owed on that specific date, including any escrow balances, is essential for accurate division. **One advantage of escrow that matters in family law is that it creates a clear paper trail.** When we're tracing how marital funds were spent or proving someone depleted assets, escrow accounts show exactly what went to legitimate housing expenses versus discretionary spending. I've used escrow records to demonstrate responsible financial management in custody cases where one parent claims the other is financially irresponsible. Rebecca Perry, Esq., Founder & Managing Attorney, Greensboro Family Law (Camino Law), Greensboro, North Carolina, contact through gsofamilylaw.com
I'm Max Emma, CFE and co-founder of BooXkeeping Franchise, and while we focus on helping small business owners with their books, I've personally financed multiple franchise purchases and investment properties over two decades--property tax management is something I deal with both as a business owner and real estate investor. **The biggest mistake I see entrepreneurs make is treating their mortgage escrow like a "set it and forget it" account without reviewing the annual analysis.** Last year, one of our franchisees called me panicked because her escrow shortage notice showed she owed $1,800 immediately--her property assessment had jumped 18% after neighborhood development, but she'd ignored the county's reassessment notice. When your local government reassesses, your monthly payment can spike significantly, and if you're not monitoring those annual escrow statements, you're setting yourself up for a cash crunch that could've been budgeted for months earlier. **For anyone self-employed or running a franchise, paying taxes directly outside escrow can actually improve your cash flow management if you're disciplined.** I've always paid my commercial property taxes separately in two semi-annual chunks because I can keep that money working in a business savings account earning interest until the due date--over ten years, that's added up to real money that would've just sat in escrow earning nothing. The flip side is you absolutely must calendar those due dates and have the discipline to not touch that money, because missing a property tax payment can trigger a lien that destroys your creditworthiness when you need business financing. Max Emma, CFE, Co-Founder, BooXkeeping Franchise, nationwide operations, contact through booxkeepingfranchise.com
I've analyzed real estate deals from both sides--working in retail site selection where property taxes directly impact location profitability, and through my investment banking background structuring deals where tax escrow calculations can make or break financing terms. **Here's what most people miss: property tax escrow isn't just about convenience--it's a forced savings mechanism that prevents catastrophic default.** When I was evaluating retail sites, I saw a small chain nearly lose three locations because the owner was paying taxes separately, had a bad quarter, and couldn't cover the lump sum. Their lender had to restructure everything. That's why lenders typically require escrow unless you put down 20%+ and have strong credit--they've seen this movie before and it doesn't end well. **The math on escrow timing creates a hidden benefit most homeowners overlook.** Your lender collects monthly but pays annually or semi-annually, meaning your money sits in that account for months. Yes, you're not earning interest on it, but you're also not tempted to spend it. I watched my dad manage retail company finances for years--even disciplined business owners struggle with cash flow timing. For most homeowners, the forced discipline outweighs the minimal interest you'd earn parking that cash yourself. **One critical factor I learned from site selection: property taxes vary wildly even within the same county based on special assessment districts.** We'd evaluate two identical sites three miles apart with 40% different tax rates due to TIF districts or special assessments. Same logic applies to homes--your neighbor could be paying drastically different rates based on when they bought, what exemptions they qualified for, or micro-level district boundaries. Always verify the actual parcel tax history, not just the general county rate. Clyde Christian Anderson, Founder & CEO, GrowthFactor.ai, Boston, MA, clyde@growthfactor.ai
I'm Art Putzel, managing partner at Trout Daniel & Associates--I'm a CPA and licensed broker who's spent 30+ years working with commercial real estate, but I also manage residential investment properties where property tax escrow questions come up constantly with our tenants who become first-time buyers. **Here's something most people miss: you can actually lose money by having taxes in escrow if you're financially disciplined.** I had a client who sold a retail property mid-year, and because their escrow account had been collecting for the full year's taxes, they had to wait months for the lender to refund the overage--that's cash they could have invested elsewhere earning returns. When I manage my own residential properties, I always waive escrow when possible because I'd rather keep that money working in a higher-yield account until the tax bill is actually due. **The real risk isn't about discipline--it's about lender calculation errors that you won't catch until it's too late.** In Baltimore County where I worked as Deputy Director of Economic Development, I saw countless homeowners whose escrow accounts were miscalculated because lenders used outdated assessment data. One property owner I knew was overpaying $240 monthly for two years before they noticed, and getting that refund back was a nightmare of paperwork. **My advice: if your lender requires escrow, audit that account annually like you would any vendor contract.** I tell clients the same thing I wrote about in our vendor contract guidance--just because it's in writing doesn't mean it's accurate. Request the escrow analysis statement every year, verify it against your actual tax bills from the county, and challenge any discrepancies immediately because lenders won't fix errors they don't know about. Arthur Putzel, CPA, Managing Partner, Trout Daniel & Associates, Baltimore, MD, aputzel@troutdaniel.com
In my 40 years practicing law and working as a CPA in Indiana, I've handled countless property tax disputes where homeowners didn't realize their mortgage servicer had miscalculated their escrow account. One client came to me after their lender underestimated their annual property taxes by $1,200, and when the shortage hit, their monthly payment jumped $180 overnight to make up the deficit plus build the correct cushion. Most people don't know lenders are allowed to maintain a two-month cushion in your escrow account, which means you're essentially giving them an interest-free loan on your own money. Here's something I tell every client during estate planning consultations when we discuss real estate holdings: if you're in a situation where you can waive escrow, you gain significant control over your cash flow. In Indiana, lenders typically require 20% equity before they'll consider an escrow waiver, and you need a solid payment history. I've seen business owners leverage this by investing that monthly escrow amount into short-term instruments earning 4-5% rather than letting it sit dormant with their servicer. That's an extra $400-500 annually on a $10,000 annual tax bill. The biggest mistake I see in my tax practice is homeowners who pay through escrow assuming everything is handled correctly, then get hit with a tax lien because their servicer paid late or sent the payment to the wrong county office. Indiana has 92 counties, each with different payment deadlines and systems. I had to represent a client before the Indiana Department of Revenue last year because their lender's error resulted in penalties and interest charges totaling $890 on a $3,200 tax bill. Always verify your county treasurer received payment, even with escrow. David P. Fritch, Attorney and CPA, Fritch Law Office PC, Jasper, Indiana, contact available through fritchlaw.com
I'm Sean Swain, owner of Detroit Furnished Rentals, and I've managed property taxes across multiple investment properties in Detroit for years--both through escrow and paying directly depending on the property and lender requirements. **Here's what nobody tells you about escrow accounts: they're terrible for cash flow when you own multiple properties.** When I had my first three lofts, the lender required escrow and I watched $1,200 sit idle every month across those properties when I could've invested that money into renovations that would immediately increase my nightly rates. I calculated I lost about $8,000 in potential revenue that first year because that capital was locked up instead of going toward the pool table and arcade games that now generate premium bookings. **The real risk with paying taxes separately is you need iron discipline and a dedicated savings account.** I now pay property taxes directly on four of my seven Detroit properties, and I automatically transfer the monthly amount into a separate business account the day rent comes in--treating it like it's already spent. Last November I had $6,400 due on one property, and because I'd been setting aside $533 monthly, I paid it without touching operating capital. One late payment in Detroit means a 3% penalty immediately, and I've seen investors lose properties to tax foreclosure for as little as $2,000 owed. **The deciding factor should be your interest rate and down payment--if you put down less than 20%, most lenders require escrow regardless of your preference.** When I refinanced my Riverwalk Loft at 3.2% with 25% equity, I waived escrow specifically because Detroit property taxes can increase 15-20% after reassessments, and I didn't want surprise escrow shortages forcing me to pay $300 extra monthly mid-year like happened to a fellow host I know. Sean Swain, Owner, Detroit Furnished Rentals LLC, Detroit, Michigan, contact through detroitfurnishedrentals.com
**Property taxes are local government assessments on real estate that fund essential services like schools, roads, police, and fire departments.** They're calculated as a percentage of your property's assessed value and typically billed annually or semi-annually. In Houston, where Greenlight Offer operates, we see property tax rates around 2-3% of home value--one of the highest in the nation, which catches many homeowners off guard. **Here's what I've learned closing 15-20 deals monthly: property taxes create more foreclosure situations than people realize.** At Greenlight Offer, we regularly buy homes from owners who fell behind on property taxes, not their mortgage. A $250,000 Houston home means roughly $6,000-7,500 in annual taxes. Miss that payment, and you're facing liens that compound quickly with penalties and interest--I've seen tax debt balloon from $8,000 to $15,000 in just two years because the homeowner thought they had more time. **The biggest misconception I encounter is thinking you can skip property taxes if you own your home outright.** Last month, we purchased a paid-off property where the elderly owner owed $23,000 in back taxes and was weeks from a tax sale. Property tax liens supersede almost everything--even mortgage liens. That's why lenders insist on escrow accounts for most borrowers; they're protecting their collateral as much as they're protecting you from yourself. **From my radio presence across Houston, the most common question I get is about escrow account cushions.** Lenders typically hold 2-3 months of extra property tax payments in your escrow as a buffer, which frustrates homeowners who see it as "their money" sitting idle. But after working with hundreds of distressed homeowners, I've seen that cushion save people during property tax reassessments--Houston values jumped 10-15% in some neighborhoods recently, and that escrow buffer prevented payment shock for families already stretched thin. Sean Zavary, Founder & CEO, Greenlight Offer, Houston, TX, sean@greenlightoffer.com
I'm Bruce Kemp, owner of Lighthouse Energy electrical contracting company in West Palm Beach, and I've owned commercial properties for decades while managing real estate aspects of my business operations across South Florida. **The biggest property tax shock I see hits small business owners who finance their first commercial building.** When I bought my shop space in 2008, the lender required 25% down before they'd even discuss waiving escrow--that's the typical threshold. Most residential buyers can't hit that equity level, so they're stuck with escrow whether they want it or not. Commercial deals give you more leverage to negotiate, but you need serious skin in the game first. **Here's what nobody tells you about self-paying property taxes: South Florida counties will absolutely seize your property faster than you'd expect.** I know a contractor in Broward who missed two consecutive years of tax payments while dealing with a family medical crisis--by year three, the county had already initiated foreclosure proceedings on a building he'd owned for 12 years. There's no grace period or friendly reminder system; they sell tax certificates to investors who can eventually take your deed. Your mortgage company prevents this nightmare by forcing you to save monthly, which is honestly why most people shouldn't waive escrow even if they qualify. Bruce Kemp, President & CEO, Lighthouse Energy Services, West Palm Beach, Florida, contact through lighthouseenergyco.com
I'm Tim DiAngelis, owner of Lawn Care Plus in Roslindale, Massachusetts, and while I run a landscaping company, I've owned commercial and residential properties for over a decade--dealing with property tax payments on multiple properties has taught me what works and what creates headaches. **The biggest mistake I see property owners make is not understanding their escrow cushion requirements.** When I bought my first investment property, the lender required an escrow account and collected what seemed like an extra two months of property taxes upfront as a "cushion." That caught me off guard because I'd budgeted for closing costs but not for that additional $3,200 sitting in escrow. Now I always tell people looking at properties to ask their lender exactly how many months of tax cushion they'll hold--it varies by lender and affects your cash-to-close significantly. **One thing I've learned from managing multiple properties is that paying taxes separately from your mortgage only makes sense if you're disciplined with money and want that cash working for you.** I have one rental property where I waived escrow because my lender allowed it after I put 25% down, and I set aside the tax amount in a high-yield savings account--I earned about $180 in interest last year before paying the bill. But on my primary residence, I keep it escrowed because I don't want to think about it, and during our busy season when we're doing 12-hour days on landscaping jobs, the last thing I need is to remember a $6,000 property tax deadline. **The real danger I've seen in my industry is seasonal business owners who waive escrow and then hit cash flow problems.** I know two other landscaping contractors who pay their property taxes directly, and one nearly missed his payment because all his cash was tied up in equipment purchases and payroll during our spring ramp-up. When you're in a business like mine where 60% of annual revenue comes in six months, having that monthly escrow payment forces you to budget correctly year-round instead of scrambling when the tax bill arrives in November. Tim DiAngelis, Owner, Lawn Care Plus, Inc., Roslindale, Massachusetts, contact through lawncareplusma.com
After 19 years running OTB Tax and preparing returns for clients in every state, I've seen thousands of mortgage statements and property tax scenarios. What most homeowners miss is that property taxes are one of the most overlooked deduction opportunities, especially if you're running a home-based business--suddenly a portion of those property taxes becomes a direct business write-off on top of the itemized deduction. **The escrow surprise that catches people off-guard is the reconciliation statement.** I had a client in South Carolina whose property taxes increased by $1,200 after their county reassessment, but their lender only adjusted their monthly escrow by $85. When reconciliation time came, they owed a $600 shortage payment immediately plus the higher monthly amount going forward. Most people don't read that annual escrow analysis letter until it's too late. **Here's what business owners need to understand about paying taxes separately versus through escrow.** If you're attempting to earn income from home (remember, just 45 minutes a day, three to five days a week qualifies you), you need those property tax receipts as standalone documentation for your business deduction. When it's bundled in escrow, you're pulling a 1098 form instead of actual payment receipts, which makes the home office deduction calculation messier during an audit. **The tax strategy piece nobody talks about: timing your property tax payments when you pay separately.** I have clients who pay their property taxes in January instead of December specifically to match them with their highest-income year, maximizing the deduction. You can't control that timing when you're locked into escrow--the lender pays when they pay, regardless of what benefits your tax situation most. Courtney Epps, Tax Strategist & CEO, OTB Tax, South Carolina, info@otbtax.com
I'm Gunnar Blakeway-Walen, Marketing Manager at FLATS(r), where I oversee marketing for over 3,500 units across multiple cities. Managing a $2.9 million annual budget means I work closely with our finance teams on everything from vendor contracts to occupancy economics, including how property tax fluctuations impact our operating budgets and resident pricing. **The biggest misconception I see with property taxes and mortgages is people forgetting their escrow analysis happens annually, not when tax rates change.** In our Vancouver properties, we've seen Clark County adjust mill levies mid-year for infrastructure projects. Residents often don't realize their mortgage servicer won't adjust escrow contributions until the next annual analysis, which means they're underpaying for 6-12 months and then get slammed with a shortage bill plus a sudden monthly payment increase. I always tell friends buying homes to check their county assessor's website quarterly for any approved levy changes and proactively call their servicer to increase escrow deposits before the shortage hits. **For multifamily properties, we pay property taxes directly--no escrow--because we negotiate better cash flow control and can earn interest on that capital until the payment deadline.** Most lenders require 20% equity minimum to waive escrow on residential mortgages, and you'll need proof of on-time tax payments for at least a year. The discipline required is real though--I've seen investors lose properties at tax lien sales because they spent the money they should've set aside, thinking they'd "catch up later" when the bill came due. Gunnar Blakeway-Walen, Marketing Manager, FLATS(r), Vancouver, WA, contact through FLATS corporate channels
I'm Gunnar Blakeway-Walen, Marketing Manager at FLATS where I oversee a $2.9 million budget across 3,500+ multifamily units. While I work on the rental side, I analyze property tax impacts daily since they directly affect our operational costs and lease pricing strategies. **The timing mismatch between tax assessments and escrow adjustments creates cash flow chaos that most homeowners miss.** In our portfolio analysis, we noticed property tax increases in Chicago's Uptown neighborhood averaged 8-12% annually, but mortgage servicers typically only adjust escrow accounts once yearly during their analysis period. This creates a 6-9 month lag where you're underpaying, building a deficit you'll owe later as a lump sum or spread over 12 months with higher payments. **Track your county's reassessment schedule and budget for it before your servicer does.** I use the same data-driven approach I applied when analyzing resident feedback through Livly--anticipate the problem before it shows up in your monthly statement. When we reduced move-in dissatisfaction by 30% through proactive FAQ videos, it proved that addressing issues upstream saves money and stress downstream. Set aside 2-3% of your home's value annually in a separate account if you're in an appreciating market. That cushion covers assessment increases without scrambling when the escrow shortage notice arrives. Gunnar Blakeway-Walen, Marketing Manager, FLATS, Chicago, IL, contact through livethewilmore.com
After 20+ years running Direct Express and managing thousands of transactions across Florida, I've seen property tax confusion cost people their homes. The biggest misconception? That your lender is "charging you extra" when they collect property taxes monthly through escrow. You're paying the same amount either way--the difference is whether you write one check to your lender monthly or scramble to write a massive check to the county twice a year. I've watched clients in Pinellas County face $4,500 tax bills due in November and March, and if you haven't saved $375 monthly on your own, you're in trouble. The escrow waiver option exists, but here's what nobody tells you: even when you qualify with 20% down and strong credit, your lender might charge you 0.25% higher interest rate to waive escrow. On a $400,000 mortgage, that's an extra $1,000 annually--forever. I ran the numbers for a client in Wesley Chapel last year, and keeping escrow saved him $12,000 over the loan term versus taking the higher rate to pay taxes himself. Property taxes in Florida get calculated using your assessed value times the millage rate, but homestead exemption drops your taxable value by $50,000 if it's your primary residence. I've seen identical homes in St. Petersburg--one paying $3,200 annually with homestead, the neighbor paying $5,800 without it. File your homestead exemption by March 1st the year after you buy, or you're literally throwing away $2,000+ annually. One critical detail from managing Direct Express Rentals: if you fall behind on property taxes, the county sells a tax certificate with 18% interest to investors. Miss it long enough, and that investor can foreclose and take your property--even if your mortgage is current. Your mortgage company absolutely will not let this happen if they're collecting through escrow, which is why they're so insistent about it. Joseph V Cavaleri, Jr., Broker and CEO, Direct Express Realty, St. Petersburg, FL, joe@withdirectexpress.com
I've been acquiring commercial properties in Michigan for a decade, and here's what surprises most sellers: **property taxes on commercial buildings get reassessed immediately upon sale, often jumping 30-50% from what the previous owner paid.** I bought an office building in Warren where the seller was paying $42,000 annually, but my first tax bill hit $61,000 because it reassessed at sale price. Residential works similarly but the increases are usually smaller due to homestead exemptions. **The biggest mistake I see property owners make is assuming their tax bill stays fixed.** When I evaluate buildings in Birmingham or Novi, I always check the taxable value versus state equalized value--that gap tells you how much taxes could spike. Michigan has a "pop tax" provision where selling resets your assessed value to market rate, which is why many owners get shocked their first year. **From my commercial deals, I've learned that paying taxes directly gives you leverage for negotiation most people don't use.** Last year I negotiated down a property tax assessment on a Clarkston retail building by $8,000 annually because I caught an error in the square footage calculation. If that was in escrow auto-pay, I never would have scrutinized the bill closely enough to appeal it. The hassle of managing the payment myself saved $8,000 per year--that's real money affecting cash flow. **One factor nobody talks about: special assessments can destroy your budget if you're not watching.** I've seen commercial properties in Auburn Hills get hit with $15,000-30,000 special assessments for road improvements that weren't in anyone's escrow calculations. The lender's escrow estimate is based on last year's taxes--it doesn't predict these surprise bills that can come mid-year. HJ Matthews, Commercial Real Estate Investor & Business Development Manager, Commercial REI Pros, Southfield, Michigan, webuycre@commercialreipros.com
I've spent over 15 years resolving tax controversies, including countless cases where property tax liens threatened to destroy my clients' financial lives. What most homeowners don't realize is that property tax delinquency triggers far more aggressive enforcement than almost any other debt--I've seen California counties move to foreclose in under two years while IRS collection can take much longer. **The real danger with paying property taxes outside escrow is the assessment timing trap.** I had a music industry client who waived escrow on his LA property, then got hit with a surprise supplemental assessment six months after purchase that he completely missed. By the time we got involved, penalties had added 18% to his original tax bill and the county had already filed a lien that destroyed a refinancing deal. This exact scenario is why lenders push escrow so hard for borrowers under 20% equity--they've mathematically calculated the default risk. **Here's what nobody mentions about property tax liens: they survive almost everything, including bankruptcy in many cases.** I've worked cases where clients discharged massive credit card debt and even some IRS obligations in Chapter 7, but the property tax lien stuck to their home like glue. California and most states give property tax claims super-priority status, meaning the county gets paid before nearly everyone else if you sell or lose the property. The escrow waiver decision should really depend on whether you can handle irregular large payments without fail--not just financially, but administratively. My entertainment clients often travel for months and simply forget deadlines; escrow removes that human error factor completely, which for high-earners with complex schedules is worth more than any interest they'd earn holding that cash. Samuel Landis, Esq., LL.M. (Taxation), Partner, Segal, Cohen & Landis, Los Angeles, CA, slandis@scltaxlaw.com
Property taxes are what you pay your town for schools and firefighters, and the amount is based on your home's value. Most people just roll it into their monthly mortgage payment and the lender handles it for you. That way you don't have to worry about the deadline. But you should still check your annual tax bill, since rates can change and you want to catch it first.
Here's the deal with property taxes. It's that yearly bill for things like schools and roads. You can pay it once or twice a year, but most people with a mortgage just let the lender handle it. They collect a bit each month into an escrow account and pay it for you. Honestly, it's one less thing to worry about during a move. You can pay it yourself sometimes, but your bank will want to see you're actually doing it.
Property taxes are what you pay your local town for stuff like schools, roads, and the fire department. The bill comes once or twice a year. Most people just let their lender handle it by adding a little extra to each mortgage payment. The lender keeps that money in escrow and pays the tax for you. It's one less thing to worry about. Some people still pay the bill themselves, but only if their lender lets them.