Question:  One of our elderly mortgage customers got behind on property taxes.  He has obtained a tax deferral.  What does this mean?
 
Answer:  The local authorities can't collect the taxes until the property sells or he dies.  At that time, however, the full amount of deferred taxes plus 8% per year is due in full.  If it isn't paid within 180 days, then penalties are piled on (retroactively).
 
The best protection against this is to escrow for taxes.  Remember that this lien for the deferred taxes has a super priority.  If the loan goes into default and there is a foreclosure sale, the taxes are going to be a priority lien against the property!