Bankrupt Lender Gives Maryland Tax Collector Rubber Checks For Mortgage Tax Escrow Payments; Homeowners Could Be Left On Hook

In Frederick County, Maryland, The Frederick News-Post reports:

• Frederick County government is urging residents to check their tax statements after a national mortgage company sent bad checks containing the escrowed tax payments of 12 property owners. Problems started in mid-August when the county tried to cash three checks from American Home Mortgage Investment Corp. totaling $60,000 in escrowed tax payments, said Lori Decker, director of the county's treasury department.

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• Decker has heard reports of similar problems in Prince George's County and jurisdictions in Pennsylvania. The county sent letters to the 12 affected property owners notifying them their taxes still need to be paid -- even though they had been making payments to American Home to cover their tax bills. The bad checks would have paid taxes ranging from $2,000 to $9,000 per property owner, Decker said. And that's just one set of payments. It's possible property owners owe more than the checks covered.

For more, see Bankrupt mortgage company fails to pay taxes for 12 property owners.

For story update, AHM Deflects Blame on Bounced Checks (The Associated Press - 9-27-07).