To understand if you can fall victim to tax foreclosure you first have to determine whether you have an escrow account. Government-backed loans require an escrow account. Lenders of conventional loans that are not backed by the government can decide if they want to have an escrow account or not. Once you have an escrow account, you don't need to worry about paying property taxes because your loan servicer takes care of it. If you are a homeowner who does not have an escrow account for your mortgage or you have made all of your mortgage payments and own your home completely, you could be served with tax lien foreclosure documents. Tax lien foreclosure is a foreclosure that takes place after you fail to pay your property taxes. The foreclosure is initiated by the county that you live in because they have the lien on your home once you fail to pay the tax.
