AHM property tax checks bounce

There have been news reports recently of American Home Mortgage property tax checks bouncing in Maryland. AHM, which recently filed for Chapter 11 bankruptcy, has issued 41 bad checks for property tax payments in Baltimore. There are also reports of no checks being sent, as well as similar issues in surrounding communities. I have a feeling that this problem will become more widespread, as many more communities have property taxes due over the next three-four months. The scary part is that the homeowner is still responsible for the payments, as well as any delinquent tax fees, if their escrow checks fail to show up or bounce. My recommendation, if you still escrow, is that you need to keep receipts and documentation of all your escrow payments, as well as be prepared to pay the taxes yourself. If possible , consider removing escrow from your mortgage.